Agents knew the score, says Air NZ

Agents knew the score, says Air NZ
By admin

The allocation of Air New Zealand’s fuel surcharge to a non-commissionable code was intended to make the levy easier to amend and remove, the airline’s legal counsel has argued.

On the second day of the class action against Air New Zealand in Sydney’s Federal Court, Robert Stitt QC stated the surcharge had been implemented as a temporary measure which would be removed when fuel prices settled and the NZ dollar strengthened.

In addition, its placement in the YQ box was intended to diminish its negative impact on the cost of sale.

“If it was commissionable, it would force Air New Zealand to increase the base fare to recover the commission payable,” Stitt said.

He insisted that agents had been clearly notified of the imposition of the fuel surcharge.

“The evidence overwhelmingly is that this was communicated widely and accurately to all relevant participants in the industry,” he said.

Subsequent “fluctuations” to the charge were also communicated in the same manner.

He asserted that agents had been made aware that the surcharge would be allocated to the YQ code and that it was not commissionable.

“Further the notification included the statement or the indication that it did not form part of the revenue basis for incentive payments under the ISAs (Incentive Scheme Agreement between Air NZ and agents),” he said.

The case continues.

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