Philippines orders Malaysia’s AirAsia to shut down website over excessive pricing

Transportation Secretary Vince Dizon announced on June 2 that the Civil Aeronautics Board had issued a cease-and-desist order, and that authorities were working with police to shut down the site, according to Bloomberg.

An AirAsia aicraft seen at an air base in Angeles City, Pampanga province, north of Manila, the Philippines, on Aug. 15, 2011. Photo by AFP

The aviation authority, responsible for setting airfare price caps in the Philippines, said that the company raised its prices after transportation disruptions in Tacloban City caused by the closure of a major bridge to trucks.

"We will really put the full force of the law on these unscrupulous online platforms that are taking advantage of our people," Dizon said.

Authorities plan to promptly file a case for "criminal economic sabotage" against the digital platform, which is owned by Malaysia-based Capital A Berhad, he further noted.

Over the weekend, AirAsia Move charged PHP77,000 (US$1,382) for a one-way ticket from Manila to Tacloban City via Philippine Airlines, triple the price quoted on the flag carrier’s website, according to Transportation Ministry data.

"Clearly, this is just absurd," Dizon stated at the briefing. "What AirAsia Move is doing is criminal."