The Civil Aeronautics Board (CAB) has slapped AirAsia MOVE, the online booking arm of Malaysia-based AirAsia, with a ₱6-million penalty for its alleged misleading and overpriced fares.

Earlier this month, Department of Transportation (DOTr) Secretary Vince Dizon ordered AirAsia MOVE to cease selling in the Philippines following reports of absurdly high ticket prices.

Dizon asserted that the platform’s pricing was “criminal” after it was found to have been selling a one-way ticket from Tacloban to Manila via Philippine Airlines (PAL) for nearly ₱39,000.

For comparison, booking directly on the flag carrier’s website showed that a single ticket cost just around ₱12,100.

In a resolution signed by CAB Executive Director Carmello Arcilla, the agency found the platform in violation of its fare regulations under Republic Act No. 776, or the Civil Aeronautics Act.

Under the law, CAB enforces ceilings on airfare prices in the country to keep them reasonable for consumers.

In AirAsia MOVE’s defense, it previously argued that it “does not manually set or manipulate airfares.”

As an online travel agency, the platform noted that its pricing data is provided by its authorized upstream suppliers, including third-party aggregators and global distribution systems.

The discrepancies in pricing were attributed to “temporary data synchronization issues with flight pricing partners.”

According to AirAsia MOVE, these issues were not isolated to the platform as it also affected the likes of Agoda, Kiwi.com, and Traveloka.

In response, the CAB explained that these fare anomalies do not exempt AirAsia MOVE from liability as it engages in the public offering of air transportation services to Philippine consumers, which is bound by the regulator’s policies.

During an internal investigation, AirAsia MOVE found that no booking transaction was made and likely no passengers were affected by the reported high airfares.

Other than facing intense public scrutiny, AirAsia MOVE did not gain any commission out of the fares in question. We immediately asked our third-party suppliers to provide a written explanation to ensure full clarity on the issue, AirAsia MOVE Chief Executive Officer Nadia Omer earlier said.

However, the CAB asserted that displaying such fares could mislead consumers into believing that such fares are legitimate.

To recall, the reported surge in airfares coincide with the state of emergency across various areas in Eastern Visayas due to the rehabilitation of the San Juanico Bridge, which resulted in load restrictions.

Dizon earlier floated that the booking platform may have taken advantage of the crisis involving the movement of goods and people.

In a statement, the DOTr commended the CAB for its swift action in penalizing AirAsia MOVE.

“The ₱6 million penalty imposed on AirAsia MOVE sends a clear message: the government will not tolerate any form of abuse to Filipino passengers,” the agency said.

“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.

The Malaysia-based AirAsia MOVE is an affiliate of budget carrier AirAsia Philippines.