AirAsia MOVE Lauds Swift Action by PH Government Against Alleged Excessive Airfare

Manila: Executives of online travel platform AirAsia MOVE on Thursday commended the Philippine authorities for their swift action in addressing the alleged excessive airfare being charged by the Malaysia-based platform. The issue came to light when Transportation Secretary Vince Dizon reported discovering two tickets from Tacloban to Manila priced around PHP77,704-approximately three times the cost of booking directly on the airline's website.

According to Philippines News Agency, Dizon initiated an investigation into the matter on June 2 and requested the Philippine National Police - Anti-Cybercrime Group to take down MOVE's website. Speaking to reporters, MOVE's chief executive officer Nadia Omer and spokesperson Ana Alexandra Castro acknowledged the swift response by Philippine authorities and shared insights from the initial hearing conducted by the Civil Aeronautics Board (CAB).

Castro explained that the CAB identified a need for clear guidelines and recognized a knowledge gap regarding the fare setting process. She elaborated that airlines initially set the prices within CAB-approved ceilings, followed by suppliers purchasing seats at lower prices, with online travel agencies like MOVE acting merely as platforms without control over pricing.

Omer highlighted that Philippine authorities were surprised to learn that MOVE does not implement dynamic pricing, which would typically increase prices with rising demand. She asserted that the transactions in question were not completed, as no seats were available, and no charges were made to the buyer's credit card.

Castro also mentioned that a comprehensive investigation into the matter is underway, with no resolution or decision on potential legal action against MOVE at present. Both executives confirmed that MOVE's website remains operational as of Thursday.