Overpricing ends in P6 million fine for AirAsia Move

MANILA, Philippines — The government has imposed a P6-million penalty on AirAsia’s booking arm AirAsia Move for trying to sell plane seats for up to P39,000 one way at the height of a transport crisis.

The Department of Transportation (DOTr) yesterday said the Civil Aeronautics Board (CAB) is penalizing AirAsia Move for attempting to sell one-way flights to Tacloban for P39,000 each.

“The P6-million penalty imposed on AirAsia Move sends a clear message: the government will not tolerate any form of abuse to Filipino passengers,” the DOTr said.

Earlier, CAB also reminded online travel agencies to abide by the approved maximum fares when offering plane tickets as it acts on reports of overpricing among OTAs, some of which involved flight offers to crisis-hit Tacloban.

Any practice of overcharging, CAB warned, will be met with regulatory action.

AirAsia Move found itself in hot water when Leyte Rep. Richard Gomez found a one-way Tacloban flight on its site at P39,000 per guest at a time when the city was facing logistical issues.

Currently, the government is implementing a three-ton load restriction at the San Juanico Bridge to complete its repairs, preventing buses and trucks from crossing and causing transport problems in Leyte, where Tacloban is located, and Samar.

Transportation Secretary Vince Dizon believed that AirAsia Move was committing economic sabotage, as he accused the platform for exploiting Tacloban’s predicament.

He told CAB to investigate the matter and see whether AirAsia Move is guilty of price gouging.

After a hearing with CAB, AirAsia Move chief executive officer Nadia Omer said the platform would recalibrate its system within three months.

AirAsia Move, a unit of low-cost carrier AirAsia, offers booking access to more than 700 airlines and one million hotels across the world.