Friday, August 29, 2025

Tony Fernandes says PHP6-M fine on Air Asia Move is ‘unfair,’ laments ‘harsh’ treatment

Online ticketing platform AirAsia Move, which handles AirAsia airline’s online bookings, will assume some liability for the PHP6 million penalty imposed by the Philippines’ Civil Aviation Board (CAB) for the “overpricing” incident, believing the fine was “high” and “unfair.”

Tony Fernandes, CEO of Capital A (formerly AirAsia Group), stated that they have not yet paid the penalty. He is scheduled to meet on the afternoon of July 9, 2025, with Department of Transportation Secretary Vince Dizon, who also oversees the CAB, to explain their side of the story. The CAB recently fined AirAsia Move PHP6 million for attempting to sell a one-way ticket (Manila-Tacloban) for PHP39,000 during a period of logistical issues in the area.

“We haven’t paid yet. We think it’s unfair. We believe it’s too high. It wasn’t our fare—it came from a middleman. I want to explain our side…and we will take some liability because the fares were on our website…but our mitigating circumstances are, one, it wasn’t our fare, it was from a middleman, and two, no one bought it,” Fernandes said during a press conference on Wednesday, July 9, 2025. When asked whether AirAsia Move intends to pay the penalty, he responded, “We will take some liability because the fares were on our website…but we’re here to explain, and I’ll see what can be done.”

Fernandes added that he plans to tell the DOTR Secretary: “If you want me to put PHP6 million into a fund to promote the Philippines, I’ll do that—because that’s proactive and beneficial. We did not overcharge, and there was no malicious intent.”

He expressed disappointment over what he called “harsh” treatment and the negative press. Fernandes also called for a dialogue to reach a “win-win” solution, remarking, “Life’s too short to get too stressed out.”

While it remains uncertain how the one-way fare spiked to PHP39,000, Fernandes emphasized that the fares originated from a middleman, not directly from AirAsia. He stressed that if the airline had a direct relationship with AirAsia Move, “none of this would have happened.”

Fernandes explained that the consolidator pushed the fare to AirAsia, but with millions of fares out there, they cannot check each one. Currently, they are implementing measures to cap fares and prevent similar incidents in the future.

“…there may still be a glitch, but it’s highly unlikely. I don’t know—no one knows—whether the algorithm in the middleman decided to react to some problem, like a destroyed bridge route, and inflated the price. We’re hearing denial from everyone. It could have been a computer glitch, or maybe an attempt to take advantage of the market. But if it was an algorithm, they should re-evaluate it because no one would buy a fare at that price,” he noted.

Separate Company

Fernandes also emphasized that AirAsia Move is an independent entity from the airline. The airline holds only a minor stake in the platform but continues to use the AirAsia brand because it’s their biggest customer.

“AirAsia Move is an independent company, with its own board. It’s chaired by the chairman of the World Trade and Tourism Council—Manfredi Lafabré. He owns one of the biggest cruise lines…” he said. Lafabre, he added, also owns the largest luxury travel agency, among other investments.

As he restructured his businesses, Fernandes announced that AirAsia would be phased out of AirAsia Move, which will then operate as move.com—just like other online booking platforms that consolidate fares from multiple airlines. Once the restructuring is complete, Fernandes said, “AirAsia will disappear from Move, including its very small ownership stake.”

Fernandes shared that his primary motivation when creating AirAsia Move was to promote the Philippines. “That’s why I was kind of, I’m an emotional guy, upset with what was said in the press,” he said. “And I thought we were treated a little bit harshly.”

He also clarified that there was no reprimand to his staff and, as the company’s founder, he stands by his team, whether facing criticism or praise: “I will stand up and be counted.”

Investing in the Philippines

Despite the negative press, the PHP6 million fine, and the higher charges that private airports are imposing, Fernandes affirmed their continued commitment to the Philippines.

“The important thing is to keep communicating,” he said. “If you fundamentally believe what you’re doing is right, you just gotta push that message across.”

Reflecting on their 23 years of doing business in the country, Fernandes admitted that “not every battle was won,” but emphasized resilience and perseverance.

He acknowledged that, in the global landscape, there are many attractive places to invest. “So, if it’s not attractive, you put it somewhere else. If the airport’s too expensive, you book flights elsewhere. That’s the reality,” he said.

Despite the recent setbacks, Fernandes considers what happened with AirAsia Move’s pricing a mere “blip” and remains optimistic about doing business in the Philippines.

“I’m still very optimistic—that’s why I’m here. And we continue to have dialogues, letting people hear both sides,” he added.

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