Wednesday, 04 June 2025, 7:46 am

    AirAsia Move faces legal heat over Tacloban fare hike

    The Department of Transportation (DOTr) announced plans to file an economic sabotage complaint against Malaysia-based online booking platform AirAsia Move, accusing it of charging exorbitant airfares for domestic flights, notably a recent Tacloban-Manila route that cost over ₱77,000 for two passengers.

    Transportation Secretary Vince Dizon, in coordination with the Civil Aeronautics Board (CAB) and the DOTr-Aviation Group, said the government is preparing criminal charges against the platform, citing violation of fare regulations and potential exploitation during an ongoing transportation crisis in the region.

    The move follows a complaint lodged by Leyte Rep. Richard Gomez and Ormoc Mayor Lucy Torres-Gomez, who flagged the alleged overpricing. According to Dizon, the same flight, if booked directly through Philippine Airlines, would have cost approximately ₱12,000 per passenger.

    “This is not just absurd — this is criminal,” said Dizon, calling AirAsia Move’s pricing tactics “economic sabotage.” He has since ordered the PNP Cybercrime Division to take down the website and instructed CAB to investigate similar pricing practices by other online travel agents (OTAs).

    On May 26, CAB issued a cease and desist order against AirAsia Move, prohibiting it from marketing or selling tickets at rates above the agency’s approved fare structure. The platform responded in a May 29 letter, asserting that CAB’s jurisdiction does not extend to foreign-based OTAs under Republic Act No. 776 and that any enforcement must be supported by statutory authority.

    The escalating legal confrontation raises broader corporate and regulatory implications for OTAs operating in the Philippines, particularly on pricing transparency, jurisdictional limits, and consumer protection amid crises. The case may also set a legal precedent concerning the application of Philippine aviation law to cross-border digital platforms.

    The DOTr said further actions will be taken against other platforms engaged in similar fare inflation practices across other local destinations.

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