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Air Asia Sued by ACCC for misleading Prices

The Australian Competition and Consumer Commission has instituted legal proceedings in the Federal Court, Melbourne against Air Asia Berhad (Air Asia).

Air Asia is a foreign corporation that carries on a business in Australia as a supplier of international air travel services to the Australian public.

The ACCC alleges that Air Asia on its website (www.airasia.com/au) did not display some airfare prices inclusive of all taxes, duties, fees and other mandatory 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.

The alleged conduct is in relation to the following flights between:

  • Melbourne and Macau, London, Ho Chi Minh City, New Deli, Hangzhou and Chengdu
  • Perth and Taipei, Phuket, Osaka, London, Ho Chi Minh City, and Hangzhou, and
  • Gold Coast and Ho Chi Minh City.

The ACCC alleges the conduct contravenes section 48 of the Australian Consumer Law within the Competition and Consumer Act 2010.

The ACCC is seeking:

  • declarations that Air Asia contravened the Competition and Consumer Act 2010
  • an injunction to restrain Air Asia from engaging in misleading conduct in the future
  • a court order that Air Asia publish corrective notices on its websites regarding the conduct
  • penalties, and
  • ACCC costs.

The matter has been filed in the Federal Court’s Fast Track List and is listed for a scheduling conference in Melbourne on Friday, 2 March 2012 at 10:15 a.m.

Abdul Malik Omar
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One thought on “Air Asia Sued by ACCC for misleading Prices

  1. Strange case of Aussie half brain approach to everything.

    AirAsia X is a point to point airline and this is made quite clear to all travellers in plain English and advertised fares disclosed all compulsory costs ie fare, taxes, surcharge and fees. However not all Australians can read English, esp fine prints.

    I think the problem is the FLY THRU facilities. For example, a PER to LGW (up till 31/3/12) fare could be mistake as a PER to LGW flight with a stop over in KUL. In reality it is a PER-KUL advertised in the ‘Australian way’ i.e. fare fully disclosed and a KUL-LGW advertised in a ‘normal way’ ie sensational low fare but add taxes and other fees. But then again no one can stop aussies from accessing fares relating to pair cities which do not involve Australia.

    The online cyberspace does not discriminates, the ACCC may not understand this.
    IF Air Asia is required to disclose fares offered from KUL to non Australian destinations in the ‘Australia way’ then ACCC is trying to extend their reach beyond their jurisdiction.


    Posted by Adam Yahya (@mdnizamy) | January 25, 2012, 4:57 pm

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