AirAsia MOVE chief decries 'unfair' ₱6-million fine, points finger at middlemen
Tony Fernandes
The ₱6-million penalty against AirAsia MOVE, the online booking arm of Malaysia-based Capital A Berhad, for its alleged misleading and overpriced fares is “unfair,” according to the conglomerate’s head honcho Tony Fernandes.
In a press conference on Wednesday, July 9, Fernandes said the company has yet to pay the penalty to the government.
“I was taken a little bit aback by the reaction, and I wish people had gotten both sides of the story,” Fernandes said.
“I’d rather put that ₱6 million into investing and bringing more people here, right?” he quipped.
Last month, the Civil Aeronautics Board (CAB) slapped AirAsia MOVE with the fine due to violations of the country’s fare regulations.
The Department of Transportation (DOTr) earlier ordered the platform to cease its operations in the Philippines following reports of absurdly high ticket prices.
It was earlier found that a one-way ticket from Tacloban to Manila via flag carrier Philippine Airlines (PAL) was being offered at nearly ₱39,000.
In contrast, booking directly on PAL’s website showed that a single ticket cost just around ₱12,100.
AirAsia MOVE recently said that an internal investigation found that no booking transaction was made and likely no passengers were affected by the reported high airfares.
While he admitted that AirAsia MOVE will take some liability since the airline tickets appeared on its platform, Fernandes reiterated the company’s stance that the overpricing was driven by its upstream suppliers—the middleman between the platform and the airline.
While it has yet to be determined whether this was caused by a technical glitch or an algorithm issue, AirAsia MOVE has since built a ceiling to prevent future surges in fares.
“If the airlines had a direct relationship with us, then none of this would have happened,” Fernandes explained.
He said local carriers have yet to officially partner with AirAsia MOVE, whereas it is already cooperating with 82 foreign airlines
“I’m still convinced, over a period of time, the local airlines will have a direct relationship with us. And it’s beneficial to them, because we have a much larger reach,” he said.
Fernandes noted that unlike other online travel agencies, AirAsia MOVE is primarily committed to serving the needs of Southeast Asia, including the Philippines.
To encourage airlines to partner with the booking platform, he said it will soon be named MOVE in the near future to curb hesitancies against the AirAsia brand.
“Airlines just freak out when they see AirAsia in there and get so emotional without really thinking,” he continued.