Tuesday, 18 December 2012

Air Asia Berhad to pay RM 645,000 penalty for breaching the Australian Consumer Law

The ACCC won its courtcase against AirAsia according to this article on its website.

The irony is that AirAsia Bhd has to pay the fine of RM 645,000 for flights of AirAsia X, because AirAsia is running the website (and numerous other services) for AirAsia X.

"The Federal Court in Melbourne has imposed a penalty of $200,000 against Air Asia Berhad for contravening the single pricing provision of the Australian Consumer Law.

Air Asia Berhad, for a period of 10 months, did not display on its website (www.airasia.com) some airfare prices inclusive of all taxes, duties, fees and other mandatory charges in a prominent way and as a single figure.


Justice Tracey also accepted a court undertaking from Air Asia Berhad restraining it from engaging in similar conduct for 3 years."

AirAsia wrote "proudly" in the draft IPO prospectus of AirAsia X that the airline has the highest income for additional services. That might be the case, but it has to be transparent about the taxes, duties, fees and other mandatory charges, at least in Australia and hopefully in all other countries in the world, including Malaysia.

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