AirAsia Move blames tech glitch for pricey fares amid Philippine probe

Summary

• AirAsia’s digital platform Move says a temporary third-party data sync issue led to abnormally high fares shown for domestic Philippine flights.

• The statement comes after Philippine authorities issued a cease-and-desist order and may pursue criminal charges over alleged profiteering.

• Move denies manual price manipulation and says it is cooperating fully with regulators.

Malaysian budget airline AirAsia has claimed that high ticket prices previously displayed on its digital platform, which has caused it to be targeted by Filipino authorities, were a “technical discrepancy”.

AirAsia Move website chief executive officer Nadia Omer said the discrepancies in fare displays for certain routes, including domestic flights operated by Philippine Airlines, were caused by temporary data synchronisation issues with flight pricing partners.

She added that the technical discrepancy caused by the third-party provider was not isolated to Move as it had also affected other booking platforms across the industry, including Agoda, Kiwi.com, and Traveloka.

“As a matter of due diligence, upon identifying the issue, Move took immediate steps and brought up the matter with the third-party pricing provider for immediate resolution,” she said in a statement today.

“Move also took steps to further enhance safeguards to prevent any future recurrence.

“Move has been working closely with relevant authorities and is fully compliant with all regulatory requirements applicable to online travel agencies operating in the Philippines,” she stressed.

Cease and desist

Earlier today, Bloomberg reported that the Philippines’ Civil Aeronautics Board had issued a cease-and-desist order to Move, which included a request for police to take down the website owned by Capital A Bhd and affiliated with Philippines AirAsia.

The instruction preventing Move from selling tickets in the country came after the aviation agency asserted that the company had hiked its prices following transportation issues in Tacloban City due to the closure of a key bridge to trucks.

Transportation Secretary Vince Dizon was quoted as telling a press conference today that authorities will “put the full force of the law” on unscrupulous online platforms allegedly taking advantage of travellers.

He also said that authorities will move to immediately file a case for “criminal economic sabotage,” adding: “Clearly, this is just absurd. What AirAsia Move is doing is criminal.”

Bloomberg reported that over the weekend, the platform listed a one-way ticket from Manila to Tacloban City at 77,000 pesos (RM5,900) via Philippine Airlines.

Citing data from the Transportation Ministry, the cost is said to be nearly three times the price quoted when booking directly through the flag carrier’s website.

Nadia also clarified that Move does not manually set or manipulate airfares, with the platform merely displaying flight inventory and pricing data as provided by its authorised upstream suppliers, including third-party aggregators and global distribution systems.

“Move welcomes the opportunity to proactively engage with relevant authorities to provide clarity on the issue and asks for due process to take its course for the benefit of all passengers booked via the platform,” she added.

She also said that Move remains in support of the Philippines’ tourism agenda through digital innovation, strategic partnerships, and enhanced connectivity.

“Since our launch in the Philippines, we have seen strong and sustained growth in travel bookings, with 85 percent of this momentum driven by domestic destinations such as Manila, Cebu, and Boracay.

“As an Asean-focused brand, we have facilitated inbound travel to the Philippines from across the region, contributing to a 28 percent year-on-year increase in international flight bookings into the country,” she added.

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