Australian regulator files lawsuit against AirAsia
 

(AFP) - AirAsia was Tuesday slapped with a lawsuit by Australian regulators accusing the Asian budget carrier of failing to disclose the full price of fares on its website.

The Malaysia-based airline, which flies international services out of Australia from the Gold Coast, Melbourne and Perth, with Sydney to be added from April, was named in documents lodged at the Federal Court in Melbourne.

The Australian Competition and Consumer Commission, the country’s consumer watchdog, claims some fares sold on AirAsia’s website do not display prices inclusive of all taxes, duties, fees and other charges.

“Businesses that choose to advertise a part of the price of a particular product or service must also prominently specify a single total price,” it said in a media release.

The regulator alleged the fares relate to flights from Melbourne to cities including London, New Delhi, and Hangzhou in China, from the Gold Coast to Ho Chi Minh City and from Perth to places such as Taipei and Phuket in Thailand.

The matter is listed to be heard on March 2 with the watchdog seeking an injunction “to restrain AirAsia from engaging in misleading conduct in the future”.

It also wants a court order “that AirAsia publish corrective notices on its websites regarding the conduct”.

AirAsia could not immediately be reached for comment.

Not knowing the details it looks like another attempt to attack any company threatening legacy carriers..... We've seen the same in Europe over and over again.

Rubbish?? Not sure, but have you tried using Air Asia's online booking process? Full of consumer traps: eg default to $$$ extras such as baggage, insurance etc. And [!!] an internet $$ convenience charge ????
Oh, and don't try calling the Hong Kong office, no English spoken except for "AAAH, you call Singapore Number...." At your cost.
I think [hope] that the Oz Consumer Watchdog's lawsuit will be enlightening.:D

There are so many bloody watchdogs in Oz its amazing they
haven't had a territorial brawl. Maybe they just piss all over
the place to define their boundaries.

In any case one takes many risks when taking low class ..er
low cost outfits. Caveat emptor applies to all of 'em.

Kuala Lumpur. Asia’s biggest budget carrier AirAsia said on Thursday it has taken “corrective action” to resolve complaints in a lawsuit brought by Australian regulators over its online fare information.

The Malaysia-based airline, which flies international services out of Australia from the Gold Coast, Melbourne and Perth, with Sydney to be added from April, was named in documents lodged at the Federal Court in Melbourne.

The Australian Competition and Consumer Commission, the country’s consumer watchdog, claims some fares sold on AirAsia’s Web site do not display prices inclusive of all taxes, duties, fees and other charges.

AirAsia said in a statement that the problem “appears to have arisen from an IT issue in September 2011” and that it intended to “constructively resolve the matter” with the commission.

“AirAsia always seeks to conduct its business fairly and in an ethical and proper manner and in full compliance with all applicable laws,” it said.

“As soon as we became aware of the matter based on the ACCCs complaint we have taken corrective action and are focused on ensuring that our customers have all relevant information on our fares,” it said, adding it had resolved the issue on its Web site.

The Australian regulator alleged the fares relate to flights from Melbourne to cities including London, New Delhi, and Hangzhou in China, from the Gold Coast to Ho Chi Minh City and from Perth to places such as Taipei and Phuket in Thailand.

The matter is listed to be heard on March 2 with the watchdog seeking an injunction “to restrain AirAsia from engaging in misleading conduct in the future.”

It also wants a court order “that AirAsia publish corrective notices on its Web sites regarding the conduct.”

Agence France-Presse

ARRRRRhh the problem is due to a IT problem... interesting... does it apply to all its other countries...

Lo Co carriers aren't really that low cost. Once you've got to the fianl payment it's then you realise that the advertised fare prices are just a hook. It's a marketing ploy. I booked flights from Manchester to Rome a couple of years ago advertised at GBP39 one way, GBP 49 return. After paying GST, a credit card fee, a check in fee, a checked baggage fee, for allocated seats, for meals, fuel surcharges and airport passenger duty, the total cost was GBP930 for four people!

It's misleading advertising. Kudos to the regulators for calling them to task!

Blame yourself Mr Winterland. If you're game to take risks by
using a low class penny-pinching outfit then you have to take
all its bull**** on the chin. If that flight had've diverted from
Roma where the flight potentially could've been canceled you
would've been screaming blue murder - after said outfit told
you to find your own way to Rome.

Read the last para in my last post above.

And next time use a real bloody airline and you'll probly find
the cost is comparable. :)

Thanks for the advice!

I knew what I was getting, the reason for using this airline was it was the only in which flew the route. If I could have used another - I would have done. The cost on "full fare" airlines was about the same, but it would have meant me driving further and paying more in parking.

We took the risk and accepted the cr@p service to save driving and parking. My post was just an illustration of how sh!tty the so called low cost marketing has become. The travelling public is being duped and many don't realise it - they see the phoney advertised price and fall into the trap. And now there's now a whole section of the market who now think this is the norm and will continue to fly with these airlines.

"Low cost" is a marketing scam and the real name of these operations should be "Low overheads". As pilots, we are an overhead as far as they are concerned. And looks what's happened to out Ts and Cs as a result!

That is very true Dan. These low class mobs that cater to the
bogan, redneck and scouser markets are contributing (I'd say
by estimate) a good 30-35% in the overall decline in T&Cs for
the last 10 years.

I won't have a bloody bar of 'em professionally nor as a pax.

Good they just realised..only in a country that enforce Anti Trust Law
 

Air Asia just " realised" that the price advertised is short of the truth. This BolehLand carrier is full of bull**** right from the start. Conning their way all thru. Give them only 2 years before all long haul destinations closed.

Budget carrier AirAsia has been slapped with a hefty fine for not including taxes and other charges on its website.

The airline was fined A$200,000 in the Melbourne Federal Court today for contravening the single pricing provision of the Australian Consumer Law, said the Australian Associated Press.

The Australian Competition and Consumer Commission said the case followed a 10-month period during which the www.airasia.com website did not display some airfare prices inclusive of all taxes, duties, fees and other mandatory charges "in a prominent way and as a single figure".

The fine related to flights between Melbourne and Macau, London, Ho Chi Minh City, New Delhi, Hangzhou and Chengdu, as well as, from Perth to Taipei, Phuket, Osaka, London, Ho Chi Minh City and Hangzhou and from the Gold Coast to Ho Chi Minh City.

Justice Tracey said unless the full price is prominently displayed the consumer may well be attracted to a transaction which he or she would not otherwise have found to be appealing and grudgingly pay the additional imposts rather than go to the trouble of withdrawing from the transaction and looking elsewhere.

He said the company would also obtain an advantage over competitors who are compliant.

He accepted a court undertaking from Air Asia Bhd restraining it from engaging in similar conduct for three years.

"This ACCC action vindicates the importance of all inclusive pricing.

"Consumers must have accurate price information, and in turn, airlines require a level playing field on price representations in this competitive industry where consumers are price sensitive," ACCC Chairman Rod Sims told AAP.

BERNAMA 18th December 2012..

A$200,000 is peanut to AirAsia.

No doubt TF will BS plenty of investors to get that covered ya.
Wonder how much he get paid to do The Apprentice Asia?
Just love da way he mirror Mr O'Leary.

The Apprentice Asia with TF... a good way to find another escape goat for his operations. :E