The Flight Centre Travel Group (FLT) has won an appeal against Australia’s watchdog and had a judgement of breached trade practices overturned.
The initial judgement was handed down against Flight Centre in December 2013 after an anti-competitive case was initiated by the Australian Competition and Consumer Commission (ACCC).
The ACCC claimed that the group had made arrangements with three international airlines to eliminate differences in international airfares offered to customers.
Graham Turner welcomes the decision.
However, today the Federal Court overturned the judgement and even ordered the ACCC to pay Flight Centre’s legal costs for both the initial case and the subsequent appeal.
The agency group’s Managing Director welcomed today’s judgement, saying it brings the six-year saga to an end.
Graham Turner added that Flight Centre aims to deliver cheaper airfares to the travelling public and is not ‘in the business of attempting to make airfares more expensive’.
“As an agent that provides considerable advice and help to the travelling public and extensive marketing for airlines, FLT asks for appropriate commissions from suppliers and also reasonable access to all deals that they release to the market.”
Graham Turner, FLT MD
“This is a logical and natural business request for an agent to make to ensure the customers it serves on behalf of airlines are not disadvantaged.
“Given that travel agents book up to 80% of international flights in Australia, it benefits consumers because it means special offers are not solely available from supplier websites.”
The ACCC’s Chairman, Rod Sims, said the ACCC took initial action because of its concern the the agency group’s conduct could ‘harm competition’ and affect consumer prices.
““Pursuing anti-competitive agreements and practices to protect consumers remains one of the ACCC’s enduring enforcement priorities.”
Rod Sims, ACCC Chairman
“The ACCC will carefully consider the judgment.”
