Tuesday 24 January 2012

Australia nails 'extraordinary' AirAsia

Australian regulator files lawsuit against AirAsia

SYDNEY — AirAsia was 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 on Tuesday.
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. - AFP

It appears that the Australians have managed to pin AirAsia for the airlines' 'cheap' antics. 
Basically the Australians are telling AirAsia and its high-flying owners to STOP CHEATING the public via misleading advertisements.
Those well versed in laws that protect consumer rights say, the Australian lawsuit against AirAsia may just be the beginning of a fiery year of the Dragon for the 'cheap' airline.
Sources in the industry say - "regulatory bodies, from at least three other nations, are expected to file similar if not more serious lawsuits against 'a cheap airline' that has been hoodwinking air travelers who opt for budget air travel" - (hopefully it is not AirAsia) 
AirAsia's critics are also saying that the impending lawsuits against the airline and its owners are the main reason for the recent shift of operations from Europe/UK towards Australia. 

It seems that the Australians are ahead of their Western counterparts and had been waiting for the catch. 

What about our Malaysian regulatory bodies? 

It's OK for greedy business entities to cheat us, just because we are Malaysians? 

p/s AirAsia is giving Malaysia a bad name! .... and I wonder why AFP couldn't reach the often publicity crazy/savy owners of AirAsia for immediate comments.

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Anonymous said...

You go to the AirAsia website, and if you are not careful, you will -

1. Pay for baggage
2. Pay for seat allocation
3. Pay for travel insurance

These are designed so that you must click "cancel" and not the other way round. Then if you pay by credit card, they charge you a convenience fee. What convenience ? You go to their counter to pay cash, and the price you get is much higher than the internet price.

Then when you go to the airport, they charge you a fee to check in manually. Those who can't read, pay an extra RM 10 for the check in service.

AirAsia has been misleading people for over 10 years. They are too big for this government to regulate.


Anonymous said...

Very true Sir.

Air Asia has been owing a lot of countries overflight clearance and navigation charges esp for flights to London.

They thought they can con them like they conned MAHB and the PM cronies.

Red dragon is catching up with the red devil.