Aussie watchdog sues AirAsia over hidden fees

 

By Melissa Chi
January 19, 2012
KUALA LUMPUR, Jan 19 — Budget carrier AirAsia is being sued by a consumer watchdog in Australia for allegedly failing to disclose the full price of fares for flights from Australia.

The Sydney Morning Herald (SMH) reported today that the Australian Competition and Consumer Commission (ACCC) has taken legal action against the airline the same day its executives were launching fares as low as A$99 (RM319) for one-way flights on its new route from Sydney to Kuala Lumpur.
 The regulator began legal proceedings in Melbourne seeking both penalties and orders for AirAsia to issue corrective notices on its web site, according to the newspaper.

“In documents filed in the Federal Court on Tuesday, the Australian Competition and Consumer Commission claims that fares sold on the airline’s website disclosed only part of the total price for flights from Melbourne, the Gold Coast and Perth to destinations in Asia, Europe and India because they excluded taxes, fees and other charges.

“The regulator wants the court to order the airline to publish on its website a notice stating that it failed to ‘specify, in a prominent way, the single price for air travel on its website … since at least September’,” the English-language daily reported.

AirAsia X, the long-haul offshoot of AirAsia, said on Tuesday it will start flying daily services to Sydney from Kuala Lumpur, barely a week after announcing a suspension of flights to Paris and London.

The airline said it would start its Sydney services from April 1 — its fourth Australian destination after Gold Coast, Melbourne and Perth.
 AirAsia X has been pushing to fly into Sydney for four years.

The announcement came a week after it cited global economic uncertainty, soaring taxes and higher jet fuel prices for a decision to cut Europe flights and routes to India.

New South Wales Tourism Minister George Souris had said the new service would bring around 55,000 more international visitors to the state each year.

SMH reported that the ACCC has shown a “growing willingness” to take action against airlines for running foul of consumer laws.

Last year it said ACCC pursued Singapore-based budget airline Tiger Airways for selling tickets after the air-safety regulator had grounded its fleet of aircraft in July due to safety concerns.
 The regulator also took Qantas to task for the amount of compensation it offered passengers disrupted by its decision to ground its entire fleet on October 29.

http://www.themalaysianinsider.com/malaysia/article/aussie-watchdog-sues-airasia-over-hidden-fees

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