ACCC launches action against AirAsia for hidden fees

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Good on ACCC for pursuing this!
 
Yeah, cos they usually won't do anything else useful...

Lol. They have teeth. And sometimes they get a bone to play with. Air Asia Will be a nice warning shot to others.

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what have the $99 fares got to do with it? They were ALL IN and there were no extra charges.

I suppose it might have been the odd other kinds of fares which they might've missed, although in saying that one has to ask, "Where's the evidence?"

In addition, one has to be careful in which AirAsia site was accessed. The article says it's supposed to be the Australian site (where inclusive prices are required), but who's to say a complaint was lodged with the wrong website (e.g. the Malay one, where prices can be advertised without the full charges).

Also, I wonder if the complaint may be related to the component pricing of AirAsia and not enough statements made about extra charges that may apply (e.g. baggage, meals, comfort etc.). Especially with a $99 SYD-KUL fare, some people may think it's a mistake or that they are jumping on $99 fares when your incidentals on top (e.g. baggage etc.) may cost at least 50% of that on top. Some of these kinds of arguments are superficial indeed, but might be the originating source of the action.
 
I suppose it might have been the odd other kinds of fares which they might've missed, although in saying that one has to ask, "Where's the evidence?"

In addition, one has to be careful in which AirAsia site was accessed. The article says it's supposed to be the Australian site (where inclusive prices are required), but who's to say a complaint was lodged with the wrong website (e.g. the Malay one, where prices can be advertised without the full charges).

They state it was the Australian site, and they would be very careful that they have picked the AU site as the ACCC would hate to lose over something so silly.

There are two things at play, the first is that if they advertise $99 fares, a general member of the public MUST be able to find a $99 which will take them to KUL. Furthermore there must be a reasonable number of $99 fares released over the time period that these fares are offered so that a general member of the public has a reasonable chance of purchasing a flight at the quoted price.

Extra's like meals \ baggage etc only have to be included if the advertisement states such things would be offered, especially when the airline is known as an LCC and thus such things are not normally included in a ticket price.

As far as evidence goes, they could get that off the AirAsia website, make some dummy bookings, and do searches over every day of the promotional period. Wouldn't take too long to do that either.
 
They state it was the Australian site, and they would be very careful that they have picked the AU site as the ACCC would hate to lose over something so silly.

Anyone would hate to lose over something quite silly, but this is the ACCC we are talking about here...

There are two things at play, the first is that if they advertise $99 fares, a general member of the public MUST be able to find a $99 which will take them to KUL. Furthermore there must be a reasonable number of $99 fares released over the time period that these fares are offered so that a general member of the public has a reasonable chance of purchasing a flight at the quoted price.

This one has been brought up time and time again for a while. It applies any time there is a sale, viz. whether it be a regular sale (e.g. Qantas or Virgin regular domestic sales) or a super sale (e.g. new route).

This argument is a bit dubious on both sides, especially for a super sale, as it is very difficult to ascertain what is an unreasonable number of fares, and given that many people may have rushed the AAX site upon release of these fares, it is quite easy to make a case of "reasonable"/"unreasonable" for both sides. For example, for a start, AAX may claim that it did release quite a number of seats but they were booked very fast, so people even 24 hours later may have eventually heard of the sale but found there were simply no more seats. Consumers may argue that since AAX should've reasonably expected that everyone would jump on a $99 fare, they should release proportionately more seats to compensate for a reasonable passenger booking a ticket in a reasonable timeframe (i.e. arguing that a few hours is not reasonable). And so on.

On the premise that the article elaborated further about something about ancilliary charges and not this note, I was tending that this aforementioned was not the problem (although it might be, i.e. this was the problem but instead the complaint manifested as being not including the full amount of charges).

As far as evidence goes, they could get that off the AirAsia website, make some dummy bookings, and do searches over every day of the promotional period. Wouldn't take too long to do that either.

You would need to get some good logs to show historical evidence that on a certain date or time frame, AAX did something wrong (or conversely). I'd imagine screenshots might end up being very circumstantial in court. Same thing with random searching, especially if in court they are not fully qualified (what did you search, when did you execute the search relative to the start of the sale, which dates did you search for flights, etc.)

I'd imagine AAX wouldn't engage in tactics to cover up if it was in the wrong, but electronic evidence is dubious at best (though that again can work for and against both sides of the argument in an admittedly dinosaur legal system).
 
When that sale was launched there was $99 fares available on every day I looked. There was absolutely no shortage of them.
 
There are two things at play, the first is that if they advertise $99 fares, a general member of the public MUST be able to find a $99 which will take them to KUL. Furthermore there must be a reasonable number of $99 fares released over the time period that these fares are offered so that a general member of the public has a reasonable chance of purchasing a flight at the quoted price.

The issue that the ACCC has is not with the SYD-KUL offer, it related to the display of some fares where there was a connection onwards from KUL.

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, coughet, Osaka, London, Ho Chi Minh City, and Hangzhou, and
  • Gold Coast and Ho Chi Minh City.

ACCC takes action against Air Asia for misleading pricing
 
sounds like an accidental glitch in the booking system

The interesting bit will be how hard will the ACCC come down on them?

It may be just a "glitch", but the ACCC may still insist that this "innocent" (arguable) mistake may still require a fairly onerous restitution.
 
When that sale was launched there was $99 fares available on every day I looked. There was absolutely no shortage of them.

Absolutely. Every single day i looked there were plenty of $99 fares available.
 
I couldn't see any $99 flight that was all inclusive, maybe I was just too late.

I remember AAX used to be quite good at including tax in the advertised price when they launched AU flights.

Not sure if that's changed since they started advertising connections.
 
You would need to get some good logs to show historical evidence that on a certain date or time frame, AAX did something wrong (or conversely). I'd imagine screenshots might end up being very circumstantial in court. Same thing with random searching, especially if in court they are not fully qualified (what did you search, when did you execute the search relative to the start of the sale, which dates did you search for flights, etc.)

I'd imagine AAX wouldn't engage in tactics to cover up if it was in the wrong, but electronic evidence is dubious at best (though that again can work for and against both sides of the argument in an admittedly dinosaur legal system).

Screen shots, probably not, logging the results of searches, done in a chronological order, AAX would have trouble disputing.
Of course this is mute point as ppl have stated there where lots of $99 fares.

Just on the topic of "but electronic evidence is dubious at best" it's very dependant. Logs which have been collated on a third party system outside the direct control of either party can be very strong evidence. (Former sys admin, who has had the unenviable task of collecting evidence from log files in the past, was not a fun job, it took forever, and until I found what we where looking for I couldn't even be sure I was looking in the right place...). Of course low quality photos, with easy access to programs such as photo shop, not really strong evidence these days.
 
Further news article: AirAsia fingers IT in price case - Software - Technology - News - iTnews.com.au

AirAsia has blamed an IT issue that it identified and fixed four months ago for its legal dispute with the Australian Competition and Consumer Commission.


The competition watchdog lodged a complaint in the Federal Court on Tuesday, alleging the budget airline "did not display some airfare prices inclusive of all taxes, duties, fees and other mandatory charges".


AirAsia told the AFP newswire that the price problem "appears to have arisen from an IT issue in September 2011".
 

The actual truth is probably that their own IT testers cannot understand the price gaming. Dont blame IT - the blame sheets home to management, and the dummy who signed off on $99 deals.

A simple answer is how many $99 seats were sold to
a) KUL
b) Other Advertised Destinations

I think claim A is passably true, and b) will be we got it wrong a bit.

In other misleading advertisements my meal on my last fight did not look bigger but my water reduced from 250 ml to 100 ml. The solution was buy 250ml for another 3RM or 96 cents odd. I got a weaselly response, but downgrade is not an upgrade. Also the water and drinks (purchased) were not cold . About time the PR people had sense injected into them.
 
Does it have anything to do with the $99 fares because I don't think it does.
 
Does it have anything to do with the $99 fares because I don't think it does.

Yes. 11 May is now showing $129 KUL to SYD fares - perhaps because they made excuses, and perhaps failed to admit the mistake first - and threw in some (added) late specials to hose things down fast. The new ACCC is looking for scalps. CASA is in a bad mood too.

Managements job is to hold the ship together, and stop bad stuff getting out, and there is a PR crew
to hose down messes. The deputies below are in charge of clean execution - getting the details right.
Now by being shifty and moving charges and add-ons - somebody reported 'yes' up the line when 'not sure' was the correct answer. Just ask Tiger and regulation compliance. The cop out that it is a bungle in the IT department or somewhere else.

PR and marketing are supposed to know something about the law. A bunch of old 'no responsibility' clauses are going to be retested. This is actually great news, there will be a lot more cheap fares or compensation vouchers on the horizon.
 
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