Skroo on top, wins price-fixing appeal

Skroo on top, wins price-fixing appeal
By Daisy Melwani


Flight Centre has won its appeal against the competition watchdog over a long-running price-fixing case.

The Full bench of the Federal Court has overturned a 2013 judgment against the travel retailer over charges it breached the Trade Practices Act between 2005 and 2009 by pressuring airlines not to undercut it on pricing.

The appeal decision means Flight Centre will be repaid the $11 million in fines it paid after the initial judgment, plus interest, which will be added to its 2014/15 financial results.

“We welcome today’s judgement and hope that it now brings this six-year saga to an end,” Flight Centre managing director, Graham Turner said.

“The company 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,” Turner said.

Calling it a “logical and natural business request”, Turner said it was to ensure customers were 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,” Turner said.

Meanwhile, the Australian Competition And Consumer Commission, which brought the case, has been ordered to pay the company’s legal bill.

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