KUALA LUMPUR: AirAsia Bhd seems to have its hands full breaking into the lucrative Australian market. A consumer watchdog in Australia, alleging that the budget airline does not disclose the full fares for its flights out of Australia, has sought legal redress.
The Australian Competition and Consumer Commission (ACCC) submitted documents to the Australian Federal Court, claiming that the fares displayed on AirAsia’s online website disclose only part of the total.
“The company is currently seeking legal advice and as the matter is now subject to legal proceedings, the company will not be commenting further at this time,” AirAsia said in a statement to the media.
AirAsia said the allegations relate to specific routes from Australia that pass through Kuala Lumpur, and that it is investigating the issue.
The Sydney Morning Herald reported on the issue yesterday. ACCC is said to have requested penalties and orders for the airline to issue corrective notices on its website, according to the publication.
AirAsia said it has been operating in Australia since 2007 without any previous claims.
This suit comes on the back of AirAsia announcing that its long-haul arm and associate company Air Asia X Sdn Bhd, will commence selling tickets for its KL-Sydney route, with flights to Sydney set to commence in April.
At present the company flies to the Gold Coast, Melbourne and Perth.
AirAsia X is stopping services to Europe and halting Indian routes, citing high fuel costs and high airport and handling charges as the main reasons for the stoppages. AirAsia X is suspending four weekly flights to Mumbai starting February, its daily flights to New Delhi starting March 23, four weekly services to Paris from end-March and six weekly services to London from early April this year.
Over the past year, the Bloomberg Singapore Jet Kerosene fob Spot Cargo prices have gained almost 15%, trading just below the US$130 (RM403) mark.
For the none months ended September 2011, AirAsia posted a net profit of RM428.49 million on the back of RM3.20 billion in revenue. For the corresponding period a year ago, the budget airline registered a net profit of RM750.33 million from RM2.78 million in sales.
Yesterday, AirAsia’s stock slipped two sen to close at RM3.63.
This article appeared in The Edge Financial Daily, January 20, 2012.
The Australian Competition and Consumer Commission (ACCC) submitted documents to the Australian Federal Court, claiming that the fares displayed on AirAsia’s online website disclose only part of the total.
“The company is currently seeking legal advice and as the matter is now subject to legal proceedings, the company will not be commenting further at this time,” AirAsia said in a statement to the media.
AirAsia said the allegations relate to specific routes from Australia that pass through Kuala Lumpur, and that it is investigating the issue.
The Sydney Morning Herald reported on the issue yesterday. ACCC is said to have requested penalties and orders for the airline to issue corrective notices on its website, according to the publication.
AirAsia said it has been operating in Australia since 2007 without any previous claims.
This suit comes on the back of AirAsia announcing that its long-haul arm and associate company Air Asia X Sdn Bhd, will commence selling tickets for its KL-Sydney route, with flights to Sydney set to commence in April.
At present the company flies to the Gold Coast, Melbourne and Perth.
AirAsia X is stopping services to Europe and halting Indian routes, citing high fuel costs and high airport and handling charges as the main reasons for the stoppages. AirAsia X is suspending four weekly flights to Mumbai starting February, its daily flights to New Delhi starting March 23, four weekly services to Paris from end-March and six weekly services to London from early April this year.
Over the past year, the Bloomberg Singapore Jet Kerosene fob Spot Cargo prices have gained almost 15%, trading just below the US$130 (RM403) mark.
For the none months ended September 2011, AirAsia posted a net profit of RM428.49 million on the back of RM3.20 billion in revenue. For the corresponding period a year ago, the budget airline registered a net profit of RM750.33 million from RM2.78 million in sales.
Yesterday, AirAsia’s stock slipped two sen to close at RM3.63.
This article appeared in The Edge Financial Daily, January 20, 2012.
