THE Department of Transportation (DoTr) is considering filing economic sabotage charges against AirAsia MOVE, the online travel agency (OTA) of AirAsia group, for allegedly setting fares at unreasonably high levels.
At a briefing on Monday, Transportation Secretary Vivencio B. Dizon said the DoTr is investigating complaints after ticket prices booked via AirAsia MOVE of up to P39,000 one way to and from Tacloban.
“This is absurd. This is a criminal act on the part of AirAsia MOVE because when you compare with other (online tickets), prices are way different even for the same date,” Mr. Dizon said.
A complaint was filed by Leyte Rep. Richard Frank I. Gomez, who booked one-way Philippine Airlines tickets from Tacloban to Manila via AirAsia MOVE that cost around P77,704 for two individuals, Mr. Dizon said, noting that plane tickets directly booked on the Philippine Airlines website would only cost around P49,507.
AirAsia MOVE allows users to book flights, hotels and other travel services.
Mr. Dizon said the DoTr is now in talks with the Department of Information and Communications Technology and the anti-cybercrime division of the Philippine National Police to block access to AirAsia MOVE’s website as well as its Philippine mobile application.
“This Office has determined that AirAsia MOVE has engaged in the unauthorized sale of airline tickets for carriers in the Philippines at prices exceeding the approved fare structures established by the CAB (Civil Aeronautics Board),” the DoTr said in a cease-and-desist order against AirAsia MOVE dated May 26.
The DoTr has also ordered AirAsia MOVE to cease from offering, promoting, or selling tickets of Philippine carriers at prices that exceed the approved fare structure set by the CAB.
AirAsia MOVE said Republic Act No. 776 gives the CAB the authority to regulate air carriers, and does not cover foreign-based OTAs.
Nevertheless, AirAsia MOVE Chief Executive Officer Nadia Omer said that it will cooperate with the Philippine government.
“MOVE also clarifies that it does not manually set or manipulate airfares in light of the fare discrepancy issues. As an OTA, MOVE displays flight inventory and pricing data as provided by its authorized upstream suppliers, including third-party aggregators and Global Distribution Systems (GDS),” Ms. Omer said in a statement on Monday.
The discrepancies in fares displayed for certain routes which include flights operated by Philippine Airlines were caused by temporary lags in data synchronization, AirAsia MOVE said.
“MOVE welcomes the opportunity to proactively engage with relevant authorities to provide clarity on the issue and asks for due process to take its course for the benefit of all passengers booked via the platform,” it said. — Ashley Erika O. Jose