It is formal. An Australian Federal Court found Air Asia a carrier which intentionally deceived the passengers and does not disclose the full cost to be borne, which include taxes and other charges.
AirAsia fined A$200,000 for contravening pricing provision
Posted on 18 December 2012 – 02:50pm
Last updated on 18 December 2012 – 03:53pm
MELBOURNE (Dec 18, 2012): AirAsia Bhd has been slapped with a hefty fine for not including taxes and other charges on its website.
The budget 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 (AAP).
The Australian Competition and Consumer Commission (ACCC) 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 AirAsia 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
That is their business model. Lure consumers with false attractions of very cheap fares, which is practically hardly available for consumers to enjoy. Even if the said ultra-discounted ticket is available (in the usual case would just be far for the really ultra-cheap tickets as advertised), consumers are made to buy the ticket and pay it forward and travel is difficult conditions.
It is false and misleading advertising.
Recently, it was related that a flight was turnaround and unable to complete the flight as one of the doors cannot be closed properly. A passenger, wanted to get the refund because of unable to get to her desired destination. She was refused because she did not take the travel insurance, as offered during the ticket purchase via the AirAsia website. Even the queue for submission of claims is said to be very long.
In short, they are either liars and intentionally and knowingly operated which will eventually cheated some of the passengers, even for technicalities.
The comfort and welfare of passengers is also the least on their priorities. Malaysia Airports revealed that during the development stage of KLIA2, AirAsia wanted the dedicated low cost carrier terminal not to have the aerobridge.
One story related was about a retired army officer, fell down as he stepped off the aircraft and broke his leg. The hazard is due to the negligence of AirAsia employees. When the victim claimed from AirAsia, the company refused to entertain. However, it was proven via CCTV that AirAsia employees were clearly negligence in their duties. It was said that AirAsia is being taken to court for the damages suffered by this affected passenger.
Eight weeks ago, we scooped on the story about Department of Civil Aviation (DCA) only renewed the Airline Operation Certificate for AirAsia for six months. Some of the issues stated in the stern letter from DCA include the Flight Operations manual has not been reviewed and Flight Operations is not being executed in accordance to the manual. These are real issues, which the safety of the Flight Operations is now seriously questionable.
AirAsia has been very cunning in the ways and intentions. This time last year, they staged an ‘Airport Spring’ campaign and getting passengers to ‘revolt’ against Malaysia Airports. Indeed, they are a low class operator.
Tony Fernandes and his management of creative and psychologically-charged marketingand style of short-selling have been ‘bullying’ consumers for too long now. Their rights have been infringed, violated and even scammed,with all sorts of fancy marketing schemes introduced by Fernandes, his management and AirAsia/Tune AIr Group for so long now. Their rapid and meteoric growth is actually attributable with the aggressive ‘fancy and creative’ marketing, which in reality is not attainable by the larger consumer s’market.
Its time for all those who have been wronged by AirAsia to come forward and do a class action suit against the people of misleading advertising coupled with low or denied quality service. Consumers have rights. Malaysian business environment cannot progress with personalities like Fernandes. It is definitely anti-productive on Prime Minister Dato’ Sri Mohd. Najib Tun Razak’s economic transformation program (ETP) track of making Malaysia a ‘desirable’ business destination.
Probably, instead of having his own reality tv show to boost his ‘creative and fancy’ marketing gimmick and strategy, Fernandes should be featured in National Geographic ‘Scam City’.
*Updated Wednesday 19 December 2012 1000hrs