Flight Centre loses ACCC case on airfare conduct

Flight Centre loses ACCC case on airfare conduct

Flight Centre has lost a High Court battle with The Australian Competition and Consumer Commission (ACCC) over airfare prices that initially found the travel agency group to have engaged in anti-competitive conduct and previously fined $11 million.

In a statement released on the ASX today, Flight Centre (FLT) revealed the High Court overturned the unanimous Full Court of the Federal Court judgment in FLT’s favour delivered in July 2015, concluding that the ACCC had won the test case it initiated in 2012 against the group.

The long-running ACCC and Flight Centre dispute was centered around whether the group had breached competition laws regarding international airfares between 2005-2009, per a report on the ABC.

It is argued between that period, Flight Centre made approaches to Singapore Airlines, Malaysia Airlines and Emirates over discounted international airfares, with the agency accused of trying to induce the airlines into contracts on airfare prices after discovering the three airlines were selling direct to customers at lower rates than FLT could offer, per reports.

Initially Flight Centre was fined $11 million, but the decision by the Federal Court in 2013, however was overturned at a later appeal in 2015.

However today, the court has upheld the Federal Court decision which found the company to have breached competition law by asking the airlines to curtail their direct sales to customers.

The case was ordered to return to the Federal Court to determine the penalties Flight Centre now faces.

Flight Centre stated it was reviewing the decision and will provide an update later today.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

accc airfare airlines competition emirates federal court flight centre flight centre travel group Laws malaysia airlines singapore airlines The Australian Competition and Consumer Commission

Latest News

  • Destinations
  • News

APT Launches 2025 Asia Adventures

APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]

  • Cruise
  • Luxury
  • News

Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit

Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]

  • Luxury

Malolo Island Resort opens brand new Spa

Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]