AirAsia MOVE has denied claims that it had manipulated ticket prices after the Philippine government blocked sales due to complaints of inflated fares. The Online Travel Agency (OTA) clarified its supply chain process during the Philippine’s Civil Aeronautics Board (CAB) inquiry on Thursday, emphasising that the pricing mechanism is automated and that no manual intervention or fare manipulation occurs on the platform.
AirAsia MOVE CEO Nadia Omer explained that all fares are sourced from third-party aggregators that directly engage with airlines to sell seats, and that the company does not determine the prices. She went on to say that aside from airline partners, OTAs work with these third-party aggregators as a marketing arm and therefore have no ability to alter the fares received from the suppliers. Additionally, she asserted that overpricing goes against the OTA’s values and aim to make travelling accessible and inclusive for all customers.
Furthermore, the company immediately contacted its third-party suppliers to request the removal of the disputed fares after it received the cease-and-desist order from the CAB. AirAsia MOVE also conducted an internal investigation, and according to Omer, it found that no booking transactions were made, which means that no passengers were affected by the displayed prices.
Omer also confirmed that the OTA did not receive any commission from the fares, and the third-party aggregators have been requested to provide a written explanation on the matter. Moreover, she asserted that the company is prepared to work closely with the Philippine government in developing policies to monitor pricing. Currently, the CAB is responsible for regulating airline fares and setting price ceilings.
On Monday, Philippine authorities ordered the AirAsia MOVE website to be taken down after the CAB alleged that the OTA had considerably raised prices following transportation issues in Tacloban City. The company reportedly charged PHP77,000 (~RM5,874) for a one-way ticket from Manila to Tacloban City via Philippine Airlines during the weekend, which was three times the price when booking directly from the airline.
(Source: AirAsia MOVE)
