DOTr backs AirAsia MOVE penalty over airfare violations

The Department of Transportation (DOTr) backed the Civil Aeronautics Board’s (CAB) P6 million fine against AirAsia MOVE, the digital platform of Malaysia-based Capital A Berhad, to warn industry players about misleading and excessive airfare practices.

“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 in a statement on Friday.

“The DOTr will continue to protect the rights of the commuting public and to hold accountable those who violate established consumer protection regulations,” it added.

In a resolution signed by CAB Executive Director Carmello L. Arcilla, the regulator said the P6 million penalty covers three fare violations at P2 million each and should be paid within 15 days of receiving the order.

The case stemmed from consumer complaints and CAB’s internal monitoring of fare listings in late May and early June.

CAB said the violations breached the Air Passenger Bill of Rights and Republic Act No. 776, or the Civil Aeronautics Act, which authorizes the agency to enforce fare ceilings to prevent overpricing.

To recall, the DOTr issued a cease and desist order on 26 May following a complaint from Leyte Rep. Richard Gomez.

Transportation Secretary Vince Dizon earlier called the fare “criminal” and vowed full government action. Authorities, however, clarified that the order does not cover budget air carrier AirAsia Philippines.

AirAsia MOVE had already denied manipulating fares, attributing the discrepancies to temporary data synchronization issues with third-party suppliers.

As an online travel agency, it said it merely displays flight inventory and pricing sourced from upstream providers, including aggregators and global distribution systems.