AirAsia Move says it’s not profiteering amid ‘overpriced’ fare issues

Metro Manila, Philippines - Online travel agency (OTA) AirAsia MOVE said on Thursday, June 5, it is not profiteering from its customers as it shed light on its role as a booking platform, amid allegations that it is overpricing local flights.

The company’s chief executive officer, Nadia Omer, faced the Civil Aeronautics Board (CAB) on Thursday after the transportation department flagged the travel agency over a one-way trip from Tacloban, Leyte to Manila reaching almost P40,000.

In a press briefing after the inquiry, Omer said she is not aware of the government’s price ceiling as it is supposedly communicated to airlines.

“I don’t think anybody in the OTA industry knows about it. Because we go to OTA forums, we discuss many issues, price ceiling never became an issue in this part of the world at all. So maybe, the aviation industry is working separately,” she said.

Alex Castro, AirAsia MOVE spokesperson, explained that airlines are responsible for complying with CAB price guidelines.

“Ang second party na involved dito ay ang ating (Second parties involved in this are our) third party suppliers. Basically, [they are] companies and entities who buy ticket seats in bulk, that’s their business and then sila po ang nagkakaroon ng (they get to claim) ownership over the inventory,” she said.

“OTAs, pumapasok po sila (they enter) as the marketing arm or platform of the third-party suppliers,” Castro added, saying the prices are determined by suppliers.

Omer said its over 2% commission rate as a marketing arm - a fee for the use of the platform, – has not changed over the last 18 months.

“The cost of the ticket to us has increased tremendously. How? Why? These are questions we have left with the committee. So it’s not that MOVE is profiteering. That is what we have tried to share. That the money is not coming to us,” she said.

In a press statement, AirAsia MOVE also claimed upon an internal probe, there was no booking transaction and no passengers were affected by the displayed fare flagged by the DOTr.

Omer said its app remains up and running as the investigation remains ongoing.

Transportation Secretary Vince Dizon earlier asked the Philippine National Police cybercrime unit to take down the booking platform and warned of filing a criminal complaint for economic sabotage against the company.