The Australian Competition and Consumer Commission (ACCC), the country’s consumer watchdog, slapped AirAsia with a lawsuit on January 17 claiming some fares sold on the airline’s website do not display prices inclusive of all taxes, duties, fees and other charges.
“Businesses that choose to advertise a part of the price of a particular product or service must also prominently specify a single total price,” ACCC said in a media release.
AirAsia said it was not aware of the matter before the ACCC brought its proceedings, citing the problem could be due to an IT issue in September 2011.
"As soon as we became aware of the matter based on the ACCC’s complaint we have taken corrective action and are focused on ensuring that our customers have all relevant information on our fares," the airline said in a statement.
"AirAsia always seeks to conduct its business fairly and in an ethical and proper manner, and in full compliance with all applicable laws,” it added
The airline expressed its intention "to constructively resolve the matter with the ACCC to address any issues that they may have in relation to this matter and to address any issue our customers may have had."
The case has been up for a scheduled conference at the Federal Court in Melbourne on March 2.
The issue does not affect the AUD99 promo fares for the Sydney-Kuala Lumpur route launched by AirAsia X recently, with the inaugural flight to take off on April 1.
The budget carrier currently flies to the Gold Coast, Melbourne and Perth from its Kuala Lumpur hub.