The no-frills carrier was accused of failing to disclose the full price of fares on its website.
The Malaysia-based airline, which flies international services out of Australia from the Gold Coast, Melbourne and Perth, with Sydney to be added from April, was named in documents lodged at the Federal Court in Melbourne.
The Australian Competition and Consumer Commission, the country’s consumer watchdog, claims some fares sold on AirAsia’s website do not display prices inclusive of all taxes, duties, fees and other charges.
AirAsia said in a statement that the problem “appears to have arisen from an IT issue in September 2011″ and that it intended to “constructively resolve the matter” with the commission.
“AirAsia always seeks to conduct its business fairly and in an ethical and proper manner and in full compliance with all applicable laws,” it said.
“As soon as we became aware of the matter based on the ACCCs complaint we have taken corrective action and are focused on ensuring that our customers have all relevant information on our fares,” it said, adding it had resolved the issue on its website.
The Australian regulator alleged the fares relate to flights from Melbourne to cities including London, New Delhi, and Hangzhou in China, from the Gold Coast to Ho Chi Minh City and from Perth to places such as Taipei and Phuket in Thailand.
The matter is listed to be heard on March 2 with the watchdog seeking an injunction “to restrain AirAsia from engaging in misleading conduct in the future.”
It also wants a court order “that AirAsia publish corrective notices on its websites regarding the conduct”.
Australian regulator files lawsuit against AirAsia