Flight Centre lodges price fix appeal
Flight Centre has formally lodged an appeal against its price fixing conviction and the $11 million fine imposed by a Federal Court last month.
The retailer has claimed the judgment itself contained errors and “inappropriate extensions of the law” while the fine was “manifestly excessive” compared to other cases.
The appeal follows a ruling that on six occasions between 2005 and 2009, Flight Centre attempted to enter into arrangements with Singapore Airlines, Malaysia Airlines and Emirates to ensure it offered the cheapest fares and was not undercut on the web.
In its appeal, the company said the Federal Court ruled that Flight Centre acted as an agent for airlines yet competed with them for distribution services. That overturned the "traditional notion" that Flight Centre acted solely as an agent for its suppliers, the retailer said.
In addition, Flight Centre has argued that the $11m fine was way above penalties handed down in other cases where it claimed “the law was knowingly breached and there was a clear impact on the market”.
“When the Australian Competition and Consumer Commission (ACCC) initiated legal action in 2012, we considered the case ironic given that Flight Centre pioneered airfare discounting in Australia,” Flight Centre managing director Graham Turner said.
“We also expressed surprise, based on our view that the case related to legitimate discussions between FLT and some airlines to ensure it had access to all fares that were released to the market.
“Having access to all fares is important because it ensures our customers are not disadvantaged.
“Given that travel agents book about 80% of international flights in Australia, this also benefits travellers in general because it means special offers are available from more than one source.”
Turner added that the court acknowledged that Flight Centre could request than an airline make a fare available “either through a Global Distribution System or otherwise”.
The appeal is likely to be heard later in the year.
Despite lodging the appeal, Flight Centre said it will “naturally abide with the Federal Court’s decision and the undertaking prohibiting any repetition of the conduct”.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
accc flight centre graham turner price fixingLatest News
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