Transportation Secretary Vince Dizon has ordered the Philippine National Police (PNP) Cybercrime Unit to shut down the online travel platform AirAsia Move, citing concerns over "unreasonably high" prices for flights to Leyte.
This action follows reports of exorbitant fares for one-way tickets to Tacloban, which Dizon described as exploitative amid ongoing transportation challenges in the region.
The controversy allegedly sparked when Leyte 4th District Representative Richard Gomez contacted Dizon to report that he and his wife, Ormoc Mayor Lucy Torres-Gomez, were charged over P77,000 for two one-way tickets—equating to nearly P40,000 per ticket.
Dizon pointed out that the platform, an affiliate of budget carrier AirAsia Philippines, was charging triple the typical fare, taking advantage of the partial closure of the San Juanico Bridge, which has hampered the movement of goods and people.
Dizon criticized the platform for what he characterized as price gouging—an unethical practice where providers increase prices significantly during times of scarcity or high demand.
Civil Aeronautics Board (CAB) Executive Director Carmelo Arcilla supported this stance, stating that the pricing exceeded normal operating costs and constituted an unfair market practice, especially given the context of limited transportation options.
Despite a cease and desist order issued by the CAB last May 26, AirAsia Move continued to operate, prompting Dizon to assert that the company's online platform was beyond the CAB’s jurisdiction, which only covers air carriers.
However, Arcilla clarified that the situation still fell under regulatory oversight because the fares are subject to approved ceilings, and violations can lead to enforcement actions.
Dizon also announced an investigation into other online travel platforms amid reports of steep fares to destinations like Siargao, where prices reportedly soared to P45,000 or P50,000.
The transportation chief emphasized that the government would not tolerate such practices and advised travelers to purchase tickets directly from airlines to ensure fare transparency and regulation.
Temporary
In response, AirAsia Move issued a statement clarifying that it does not manually set ticket prices. The company explained that fare discrepancies resulted from "temporary data synchronization issues" with third-party pricing providers, affecting multiple booking platforms industry-wide. The airline pledged to work with its partners to resolve the issue and affirmed its commitment to complying with Philippine regulations.
This incident highlights ongoing concerns over online travel agencies' pricing practices, especially during times of regional crisis. The government’s swift action underscores its commitment to consumer protection and fare regulation, ensuring that travelers are not exploited amid challenging circumstances.
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