AirAsia MOVE has reaffirmed its commitment to work with the Philippine government in pushing for industry-wide safeguards that ensure customer protection, following a Civil Aeronautics Board (CAB) inquiry regarding alleged overpricing due to a fare discrepancy involving a domestic flight in Tacloban.
During the CAB inquiry on Thursday, MOVE CEO Nadia Omer appeared before officials to clarify the supply chain process in the Online Travel Agency (OTA) industry, emphasizing that pricing on the platform is fully automated and sourced from third-party aggregators.
“We thank the CAB for giving us the opportunity to be heard at a proper venue in the observance of due process. The issue at hand has become a platform to proactively engage and educate stakeholders on how the supply chain works within OTAs,” Omer said.
Omer clarified that there is no manual intervention or manipulation of fares on the platform, with all fares sourced from third-party aggregators rather than being set by OTAs like MOVE.
“We want to clarify that OTAs operate through third-party aggregators, aside from direct airline partners. These third-party aggregators directly engage with various airlines to sell their seats. OTAs work with these third-party aggregators as a marketing arm or platform. Therefore, OTAs do not have the ability to manually alter prices passed on from these suppliers or airline partners,” she explained.
“We also want to clarify that there is no overpricing and manipulation as these go against the very principle of our company – to provide affordable fares and a wide range of options to make traveling more accessible and inclusive for every consumer, on every budget.”
Following the cease and desist order, MOVE immediately took action by calling out the attention of third-party suppliers and requesting immediate removal of the fares in question. During its internal investigation, MOVE confirmed that no booking transaction was made and likely no passengers were affected by the displayed fare.
“Other than facing intense public scrutiny, MOVE did not gain any commission out of the fares in question. We immediately asked our third-party suppliers to provide a written explanation to ensure full clarity on the issue,” Omer added.
AirAsia MOVE is a digital travel platform — formerly known as AirAsia Super App — that aggregates flight options from over 700 global airlines, including AirAsia. It offers flight bookings, hotels, ride-hailing, insurance, and travel retail services through its app.
In contrast, AirAsia Philippines is a low-cost carrier operating domestic and international flights using its own aircraft. The airline and MOVE are part of the AirAsia ecosystem, but operate as distinct entities — one as a technology and booking platform, the other as a licensed air carrier.
MOVE expressed its full support for establishing safeguards for consumers booking through OTAs.
“As a company that advocates consumer protection, MOVE is ready to work closely with the government in setting up a task force and developing policies to monitor pricing across to ensure alignment not just on booking platforms, but across the third-party supply chain,” Omer said.
In the Philippines, airline fares are regulated by the CAB, which sets price ceilings and ensures any fare adjustments are approved accordingly. Meanwhile, the Department of Tourism (DOT) monitors accommodation rates. However, complaints about pricing on OTAs are typically referred to the Department of Trade and Industry (DTI).
“We ask that the government also strike a balance between monitoring and regulating OTAs to ensure equal protection while encouraging economic activity and driving tourism. OTAs, like MOVE, are here to democratize travel by providing a wide range of options that suits every traveler’s budget requirements and travel aspirations,” Omer added.
MOVE is the only foreign-registered OTA that operates in full compliance with Philippine regulations — paying local taxes and providing employment to Filipinos.
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