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AirAsia warned over booking system

NZ NewswireNZ Newswire 4/09/2016

Malaysian airline AirAsia has been given a talking to by New Zealand's commerce watchdog over the way it advertised tickets on its online booking system.

The airline introduced flights from Auckland to Australia in March, but raised the eyebrows of the Commerce Commission with some surprise costs for online buyers.

The commission on Monday said it believed the airline was likely to have misled customers by not disclosing a mandatory processing fee in its advertised price and also by making luggage - at an extra cost - an op-out option.

But the airline in July responded by changing its policy and the commission says a formal warning will suffice.

"We are pleased that AirAsia has moved to improve their pricing practices, including how they disclose their processing fee, after we contacted them with concerns," commission chairman Mark Berry said.

"Since we began investigating opt out pricing last year we have now seen seven companies put an end to this practice."

Last year the commission got Air New Zealand, House of Travel, Dash Tickets, Ticket Direct and Naked Bus to change opt-out pricing policies. This year Jetstar also agreed to end its preselection of extras.

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