CAB fines AirAsia Move P6M for misleading fare practices

The Civil Aeronautics Board (CAB) has fined flight booking site AirAsia Move P6 million for allegedly misleading fare practices.

Transportation Secretary Vince Dizon had earlier ordered the takedown of AirAsia Move due to what he termed as 'unreasonably high' prices, such as a complaint from Leyte Rep. Richard Gomez and Ormoc Mayor Lucy Torres-Gomez who paid about P77,720 for two one-way tickets via AirAsia Move when the same flights on PAL's website cost only P49,507.

AirAsia Move claimed that the fare irregularities were technical glitches from third-party suppliers and that no bookings were finalized at these flagged fares, with no available seats on affected flights.

The CAB ruled that while the discrepancies were blamed on technical issues and third-party suppliers, AirAsia Move remains liable as it is bound by CAB's fare regulations and orders.

CAB emphasized that ignorance of the law does not excuse any entity from compliance with regulations, and noted that displaying airfares exceeding regulatory ceilings is misleading to consumers.

The DOTr welcomed CAB's swift action, stating that the penalty sends a clear message against abusive practices towards Filipino passengers, and both departments are now working on crafting plane ticket pricing guidelines.

AirAsia Move CEO Nadia Omer said they are developing technology to cap ticket prices within two to three months.