Manila: The Civil Aeronautics Board (CAB) has imposed a PHP6-million fine on the online booking platform AirAsia MOVE for allegedly offering overpriced airfare. "We find MOVE to have engaged in deceptive practices, in violation of the provisions of the Air Passenger Bill of Rights (APBR) and the CAB's fare regulations. MOVE's conduct and misrepresentation in the publication and sale of airline fares imputed damage to the Philippine air carriers' market image and compromised the integrity of the air transportation market," CAB Executive Director Carmelo Arcilla stated in a resolution dated June 20.
According to Philippines News Agency, the Department of Transportation (DOTr) applauded CAB for its swift response in penalizing AirAsia MOVE after discovering excessive and unreasonable airfares on its booking platform. "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 emphasized.
Transportation Secretary Vince Dizon initiated the investigation earlier this month upon learning about two tickets from Tacloban to Manila priced around PHP77,704, approximately three times higher compared to booking directly through the airline's website.
During CAB's initial hearing on June 5, MOVE CEO Nadia Omer claimed they do not manually set or manipulate airfares, and that the platform displays flight inventory and pricing data as provided by authorized upstream suppliers, including third-party aggregators and global distribution systems. Omer also asserted that MOVE does not apply price ceilings, explaining that the alleged overpriced transactions did not proceed since no seats were available. "No transaction happened and that was not charged to the (buyer's) credit card," Omer told the media post-hearing.
Despite this defense, CAB ruled that AirAsia MOVE remains liable for the fare discrepancies, attributing them to technical glitches and third-party suppliers. CAB emphasized that displaying airfares exceeding the regulatory ceiling misleads consumers into believing such fares are legitimate.
Arcilla highlighted that even without visibility of the approved maximum or ceiling fares, any prudent person or industry player should recognize that domestic flights, not exceeding two hours, priced at 77,000 to over 100,000 pesos as base fares, are highly irregular, misleading, and deceptive.
CAB enforces fare ceilings to safeguard consumers and ensure fair pricing. Arcilla noted that the fare discrepancies on the platform not only harm consumers but also raise concerns about market fairness, as airlines have pointed out that such fare displays may distort competition by creating misleading price perceptions and damage their market reputation, making them appear as highly expensive airlines.
The Philippine News Agency sought AirAsia MOVE's comment on CAB's resolution, but no response was received as of writing.
