The government said that this action is a message that it is sending out in the name of protecting passengers.
In a statement on Friday, June 27, the Civil Aeronautics Board (CAB) decided to impose a PHP6 million against AirAsia MOVE, a regional online travel agency (OTA).
According to the agency, the booking platform committed a violation when it displayed ticket prices for a Manila-Tacloban flight for PHP39,000 each, more than three times the fare charged by Philippine Airlines, which was at PHP12,100.
The CAB’s parent, the Department of Transportation (DOTr) has since commended the “swift action” of the board.
“The ₱6 million penalty imposed on AirAsia MOVE sends a clear message: the government will not tolerate any form of abuse to Filipino passengers,” the DOTr stressed.
Additionally, “The DOTr will continue to protect the rights of the commuting public and to hold accountable those who violate established consumer protection regulations.”
Meanwhile, in its previous pronouncements this month, AirAsia MOVE, represented by its Chief Executive Officer Nadia Omer, clarified what occurred.
“The discrepancies in fare displays for certain routes, including domestic flights operated by Philippine Airlines, were caused by temporary data synchronization issues with flight pricing partners.“
Omer elaborated, “This technical discrepancy caused by the third-party provider is not isolated to MOVE as it also affected other booking platforms across the industry, including Agoda, Kiwi.com, and Traveloka.”
Upon identifying the issue, the company added that they “took immediate steps” when they brought up the matter with the third-party pricing provider for immediate resolution, and also made steps to further enhance safeguards to prevent any future recurrence.
To add, “MOVE has been working closely with relevant authorities and is fully compliant with all regulatory requirements applicable to Online Travel Agencies (OTAs) operating in the Philippines.”
Moreover, in its investigation, the platform also found that no passenger was able to book the seats with astronomical prices, as the app would simply display a message indicating that the transaction has failed.
At present, MOVE has not yet issued a new statement regarding the fine imposed by the CAB.