News
DOTr orders closure, raps vs. AirAsia Move over excessive air fares
By Raymond Carl Dela Cruz, Ma. Cristina Arayata, Philippine News Agency
MANILA – Department of Transportation (DOTr) Secretary Vince Dizon has ordered the Civil Aeronautics Board (CAB) to shut down and file criminal charges against online booking platform AirAsia Move for selling plane tickets of local carriers at excessive prices amid the transport crisis in Eastern Visayas.
In a press conference at the DOTr office in San Juan City on Monday, DOTr Secretary Vince Dizon said Leyte fourth district Rep. Richard Gomez and his wife, Ormoc Mayor Lucy Torres-Gomez, bought Philippine Airlines (PAL) tickets from Tacloban to Manila via AirAsia Move that cost them around PHP77,704 or almost PHP40,000 each.
He said Gomezes were charged around three times the price compared to booking directly on PAL’s website.
“Clearly, this is just absurd, and actually criminal. I have asked [the Philippine National Police –Anti-Cybercrime Group] to take this website down today, so this AirAsia Move can no longer scam others. I’m sure Gomez is not the only victim here,” Dizon said.
He also ordered the CAB and the DOTr Aviation group to file a “criminal economic sabotage case” against AirAsia Move due to the violation happening during the transport crisis caused by the closure of the San Juanico Bridge to heavy vehicles.
“Clearly, there is a crisis there because the movement of goods and people was affected by the partial closure of the San Juanico Bridge to heavy vehicles, buses, and trucks. They are taking advantage of the situation,” he said.
In addition, Dizon instructed the CAB to investigate other online booking platforms charging excessive fares, not only in Tacloban but also in other destinations.
“We will really put the full force of the law on these unscrupulous online platforms who are taking advantage of our people,” he said.
Dizon also thanked Office of Civil Defense head Ariel Nepomuceno for informing the DOTr of the situation.
In his letter to Dizon, Nepomuceno asked the DOTr, the CAB, and the Civil Aviation Authority of the Philippines (CAAP) to investigate the alleged excessive increases in passenger and cargo air fares in Eastern Visayas, particularly those affecting routes to Tacloban, Catarman, and Ormoc City.
On May 26, the CAB issued the CDO against AirAsia Move for selling airline tickets for local carriers at prices exceeding the approved fare structures established by the CAB.
“You are hereby ordered to cease and desist from offering, promoting, or selling tickets of other Philippine carriers at prices that exceed the approved fare structures established by the CAB,” the CDO read.
In a response letter, AirAsia Move said measures to ensure compliance with the CDO have been implemented.
However, it said CAB’s jurisdiction under Republic Act. No. 776 applies to air carriers, not foreign-based travel agencies, and that “any regulatory action must be predicated on express statutory authority.”
AirAsia Move is operated by Move Travel Sdn. Bhd., an online travel agency incorporated in Malaysia.
Full cooperation
In a statement, AirAsia MOVE, however, affirmed its full cooperation with the Philippine government to uphold transparent and fare pricing and consumer protection.
“MOVE also clarifies that it does not manually set or manipulate airfares in light of the fare discrepancy issues,” MOVE chief executive officer Nadia Omer said in a statement.
MOVE displays flight inventory and pricing data as provided by its authorized upstream suppliers, including third-party aggregators and global distribution systems (GDS).
“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,” the statement read.
Omer said the technical discrepancy caused by the third-party provider is not isolated to MOVE as it also affected other booking platforms, such as Agoda, Kiwi.com, and Traveloka.
“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,” she said.
Omer said MOVE has been working closely with relevant authorities and is fully compliant with all regulatory requirements applicable to online travel agencies operating in the Philippines.
Meanwhile, Dizon clarified that AirAsia Philippines, although affiliated with the AirAsia Group, does not have anything to do with the issue.
