Expedia uses AirAsia Go Holiday’s IATA Accreditation Certificate to operate as online travel agency in Malaysia?

Expedia, an American online travel agency

From: YOUR VOICE ONLINE <UVOICE@malaysiaairlines.com>
Date: 20 September 2012 03:33:05 PM GMT+08:00
Subject: MALAYSIA AIRLINES APPOINTS EXPEDIA, INC. TO OFFER ONLINE FARES

20 September 2012

                 

 

MALAYSIA AIRLINES APPOINTS EXPEDIA, INC. TO OFFER ONLINE FARES

Malaysia’s national carrier fares offered through the world’s leading full-service online distribution channel

                                                       

Malaysia Airlines announced today the expansion of its relationship with the Expedia, Inc. group, the world’s largest online travel company, to offer travellers in Malaysia affordable airfares all year round at any time of the day, effective 20 September 2012.

This partnership provides Malaysian consumers with a simple and easy to use online travel booking channel for them to view, select, transact and finalise their air travel needs from the comfort of their homes and work places.

The arrangement appoints Expedia as one of Malaysia Airlines’ official online ticketing agents and makes Malaysia Airlines’ full schedule of domestic and international routes and fares, including that of its wholly owned subsidiary MASwings, available to consumers booking flights on Expedia’s newly-launched Malaysia website, www.expedia.com.my.

Commenting on this partnership, Malaysia Airlines Head of Sales and Distribution Duncan Bureau said, “As the hospitality industry firmly leverages on the online options for purchase of related products and services, we at Malaysia Airlines continuously take advantage of this development to expand our online distribution channels for customers to enjoy our best prices throughout the year. We are already working together with Expedia in other markets where we operate, and this is an extension of that partnership for the benefit of our customers in Malaysia. As a 5-star airline with the world’s best cabin crew, we are pleased to partner with the leading online travel company for our customers to get the best deals and enjoy our full service hospitality during their air travels”.

            We are very pleased to build upon Expedia’s relationship with Malaysia Airlines, one of the country’

It would appear from the documents below that Expedia is operating in Malaysia using the IATA accreditation number 20313742 belongs to AirAsia Go Holidays Sdn Bhd.

It would also appear that Expedia is using the Bank Settlement Plan (BSP) under the IATA Accreditation Certificate belongs to AirAsia Go Holidays Sdn Bhd.

Expedia’s letter of invitation sent to airlines in Malaysia

AirAsia Go Holiday Sdn Bhd’s IATA Certificate

Sabre is operating the General Distribution System Online

Pg 2  This letter was asking airline to join and allow Expedia to sell the airline tickets as their agent. Airlines were asked to quote the AirAsia Go Holiday Sdn Bhd’s IATA Accreditation Certificate No: 20313742.

Read about Sabre Travel Network in HERE.

AirAsia Go Holiday Sdn Bhd ( Co No; 661882-P) is a 100 % owned subsidiary of AirAsia Bhd and its directors are Datuk Kamarudin Meranun and Tan Sri Tony Fernandes. Its current total paid up capital was RM300,000.

According to Expedia’s website, AirAsia is its “partner”,  in HERE.

An advertisement showing that AirAsia fans will get an additional 10% discount. How about the fans of MAS?

The above are interesting developments for us to see from now on.  The question is whether is it lawful for Expedia to use an IATA Accreditation Certificate belong to AirAsia Go Holidays Sdn Bhd, which is a 100 % owned subsidiary of AirAsia Bhd.

Could someone help to enlighten us whether Expedia had to be registered with Malaysian authority to operate in Malaysia?  If so, whether Expedia has obtained such registration before operating?

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28 thoughts on “Expedia uses AirAsia Go Holiday’s IATA Accreditation Certificate to operate as online travel agency in Malaysia?

  1. Budak Tingkat Empat

    We all must ask the director of MAS, Tan Sri Azman Yahya about why MAS appointed Expedia. Tan Sri Azman Yahya is also the director of Symphony House. He is a very knowledgeable man that’s why he is a director of MAS. ka ka ka!

    Reply
  2. Malindo baby

    Star reports – “AirAsia seeks collaboration with Malindo Airways”; ha ha looks like someone is shitting in their pants. They forgot who is in NADI (AIROD Aerospace Technology)….. maybe the ex MAE bosses can have a world of their time with the revenge…

    Reply
  3. Tony Pariah

    AEeT … Dont give face to Air Asia and all their barua’s. Time to show them be humble, respect the people and the government authorities. Show them that not everyday is your (Air Asia) day. We fully supported Malindo Air n let Air Asia go to India where their big headed boss is belong. Thanks to our YAB PM for allowing Malindo Air to compete with Air Asia.

    Reply
  4. Siva

    Didn’t know that MAS was so ignorant about who is the partner of Expedia? Is this another indirectly collaboration with the pariah?

    I hope that Malaysian public will fully support Malindo Airway. Enough of the arrogance of that pariah trying to speak like a Mat Salleh. I am looking forward to hear that the Indonesia Airport Authority was as kind as the slumberjack or 4th Floor Administration to allow AA to owe airport by the hundred of million RM. Lets see.

    Reply
    1. we ALL know

      …. probably the BoD and the Head of Sales and Distribution Duncan Bureau knew…. but “thought” that the lil secret that Expedia.my is actually owned by TF & KM through would not be known (so soon).

      …. after waiting for so long to fill the post, pretty obvious too, that this Mat Salleh is not worth his ‘2sens’ being in that position – if he knowingly allowed this to happen… This is like asking Virgin UK to help sell British Airways tickets (NOT LIKELY – yes?)

      Reply
      1. Anonymous

        Regarding Expedia, it should be known that it is a Travel Agency and like all Travel Agencies, they sell multiple airlines. This is no different from any Travel Agency in Malaysia that sell Emirates, Malaysia Airlines or Cathay Pacific. Due to sensitivities and a perception regarding the Air Asia JV with Expedia in Malaysia, MAS only did a deal with Expedia USA and has no deal with Expedia Malaysia Before people criticise MAS for trying to grow its Distribution, perhaps time spent understanding the airline business model is advised.,

      2. 777

        Toni sensitive ? My foot. He is a fat and greedy sn.ke who aspire to be the first Malaysia president. Be very worried all of 666!

      3. Airline Distribution Expert

        @Anonymous 3:14pm

        I beg to differ with your statement “Expedia is no different from other Travel Agents in Malaysia”. Travel Agencies in Malaysia are required by law to have a license issued by Tourism Malaysia (TM) and IATA Accreditation in order to sell tickets in Malaysia. One of the major conditions of the TM licence is setup/standing and local ownership/paid-up capital.

        Expedia is profoundly different from other Malaysian Travel Agents, in the following areas:

        1. Expedia operates online via the internet – it is an Online Travel Agency (OTA). These Malaysian Travel Agents are brick and motar agencies with only some having lomited online presence.
        2. Expedia Inc USA is based outside of Malaysia, whilst these Travel Agencies operates in Malaysia, have offices in Malaysia and are governed by Malaysian Law
        3. Expedia seems to be exempted from Malaysian law because the law doesn’t quite extend to OTA based outside of Malaysian borders, since the law was formulated before the advent of Internet Booking Engine (IBE) and the proliferation of OTA. Malaysian based OTAs have always complied with the Malaysian Law because they were born out of brick and motar local TA.

        I doubt if the Malaysian authorities and MAS long standing partners i.e. Travel Agents, would object to Expedia selling tickets to Customers outside of Malaysia. But there would be objections to Expedia selling tickets to Malaysian within Malaysian borders and Malaysia Airlines being party to this. These MAS partners are subjected to Malaysian Law and the stringent IATA Acreditation regulations with their huge bank guarantees, whilst Expedia seems to be exempted.

        There is also a question of governing law. The Malaysian Consumer is protected by Malaysian Law when purchasing good and services within Malaysia. I suspect Expedia would call upon the US laws or some far-away land to govern their sale. If this is the case, then it would be impracticable for an agrieved Consumer to seek legal redress. The ICAO regulations does not have sufficient protection of air travellers from travel agencies. I guess the Airline would not care for this but I believe the Consumer does.

        There seems to be other much wider considerations when an airline like MH wishes to expand their distribution.

        If MH believe that this is the correct course of action, MH should consider other OTAs that have a better match of areas of Customer coverage than Expedia that have long been waiting to sell MH tickets e.g. Zuji, or why better still not all of them. I guess there must be reasons why the likes of SQ, QF CX and many other are either not directly selling on these OTAs or limit their ticket sales via these OTAs.

  5. Hana

    surprised that a big company like Expedia does not have its own IATA Certificate. This is very strange. The Ministry of Tourism should check whether it has the relevant permit to operate as a travel agent in Malaysia.

    Reply
  6. MAS Boy

    Expedia had to ride on AirAsia Go Holiday IATA Certificate. Something is fishy? Does Expedia need the KKKP Licence from Ministry of Tourism like any other travel agents operating in Malaysia? if not, how can Ministry control this?

    Another issue: does this also meant that the moment MAS or other associated airlines come out with a promotion, AirAsia will have the first hand knowledge?

    The Ministry of Consumer Affairs should look into this partnership whether it has violated the anti-trust law?

    Reply
    1. we ALL know

      Quote “Another issue: does this also meant that the moment MAS or other associated airlines come out with a promotion, AirAsia will have the first hand knowledge? ”

      You answered the question yourself…. PRETTY OBVIOUS ISN’T IT….. If I owned Expedia and they don’t tell me what I want to know – I would start FIRING the managers there!

      Reply
  7. messenger

    Hey gang. The earlier plan was to close MASholidays and give the business to Expedia. This was communicated by the Irish consultant for execution. Thanks GOD that the share swap was reversed and the consultant disappeared. Down the road the new mat salleh executed it. The head of commercial is Irish la gang…

    Reply
  8. we ALL know

    every where you turn,.. you find that sneaky AA buggers trying to screw MAS…. now if Expedia handles MAS tickets…. you can bet your last ringgit, that they would also have the ability to NOT sell the tickets… thus strangling the already miserable National airlines with less passengers and less revenue!

    Unless everyone is blind ~ plain enough to see that AA has the ambition to replace MAS as the National Airlines and Flag Carrier… throughout Asia and the rest of the world.

    Thanks to the all the fools and idiots that came and went ~ MAS got screwed through and through, after Tan Sri Aziz left…. :angry!:

    Reply
  9. The Traveller

    I am surprised that Expedia had to rely on AirAsia go Holiday’s IATA Accreditation Certificate to operate in Malaysia. Don’t tell me that EXPEDIA has been using other company’s IATA Certificate to operate in UK, America and other places.

    The Ministry of Tourism better wake up to investigate this so-called partnership. YB should bring up in Parliament for the Ministry to answer. A very strange situation. Check. Check and check.

    Reply
  10. Anonymous

    thank you YB for bringing such matters to light. Can some one with the know how on such matters take it up to higher levels beyond this disucssion string.

    Reply
  11. xMAS

    This is another attempt at prescribing a foreign solution by a foreigner who has little consideration of the local conditions and rules.

    When the solution doesn’t work, they leave saying that they were hindered from doing what they need to do because of too many roadblocks.

    Reply
  12. Zolkifli

    It seemed that there are still a few Air Asia’s ghosts left in MAS. It would appear that top management of MAS is still following the pariah’s path. After re-branding by changing corporate color from red and blue to pale blue now appointing Expedia a partner of AirAsia.

    Reply
  13. Jazlan

    Expedia shame on you. An American company that had to hide under the skirt of AirAsia Go Holiday to do business in Malaysia.

    The Tourism Ministry is still dragging its feet to take action against Expedia for doing business without KKKP. Why the double standard? Swift actions taken against local company but tutup mata when foreign company is doing the same thing.

    Reply
  14. MH400222071

    What the heck is wrong with Malaysia Airlines reservation system? Being number 130 in queue and to expect a callback in 70 minutes is BEYOND EXPECTATION (pun intended) if not outright ridiculous! Best part is, the CALL BACK system says to leave a number for them to call back but suprise, suprise – there is no way to leave a number !!

    Why the heck call yourself a 5 star airlines when the entire system is rotten to the core. And then I get this (M)ost (H)orrible online experience.

    The golden shine that MAS once had has truly gone to the dogs if not down the drain. From self serving directors to mindless managers, complete with demoralised and disheartened frontline, cabin crew and service staff.

    I even doubt if this feedback would ever get a response from MAS. Is this what happens when you leave your National Airlines reservation/booking system to be run by a third party (EXPEDIA) that is actually owned by Air Asia Go Holidays! Deliberate sabotage or coincidence???

    Reply

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