Subscribe


Flight Centre

Flight Centre to “vigorously defend” ACCC allegations

Flight Centre has instantly responded to the Australian Competition and Consumer Commission’s claims of price fixing, with md Graham Turner saying the allegations relate to “legitimate discussions” the company had with some airlines to ensure that it had access to all fares that were released to the market.

He said Flight Centre had clearly outlined its position to the ACCC since it first requested information almost three years ago, and would vigorously defend the case.

“For the past 30 years, Flight Centre has built its reputation on making travel more affordable,” he said.

“It is not in the business of making airfares more expensive and does not ask suppliers to raise prices or to withdraw fares.

“As an agent, Flight Centre asks for adequate commissions from airlines and other suppliers and also reasonable access to all fares that they release to the market. This is a logical and natural business request for an agent to make to ensure the customers it serves are not disadvantaged,” he said.

Turner revealed that the ACCC had initially requested information after Flight Centre ended airline contract discussions with Singapore Airlines in April 2009, and then temporarily treated the airline as a non-preferred supplier.

He said that FC’s concerns at the time mainly related to proposed changes in SIA commission rates and the airline’s “failure to give customers access to certain fares at a competitive price”.

Since then FC and SIA have agreed a contract which gives customers access to all of Singapore Airlines’ airfares.

“Flight Centre provided full details to the ACCC on this and other subjects, but until today was not made aware of the ACCC’s specific concerns,” Turner said.

“Despite numerous requests from Flight Centre, the ACCC failed to explain the legal basis of its position or to describe the conduct it believed the company should desist from,” he added.

Turner said the company was questioning why it took so long for the ACCC to launch legal action when it “had all of the facts and was given all of the relevant documents more than two years ago”.

He said Flight Centre’s commitment to delivering cheap fares had been in place since the early 1980s, and “today this pricing commitment is articulated in Flight Centre’s lowest airfare guarantee, which invites customers to ‘bring us a quote and we will beat it'”.

More information in Monday’s Travel Daily.

ThisĀ Travel Daily breaking news brought to you by Virgin Australia.

vbg0278_455x214.gif


The above Breaking News Alert was sent to Travel Daily subscribers on 09 Mar 12

Make a comment...



Established in 1994, Travel Daily is Australia's leading travel industry publication, and is sent as a paid subscription to people across the industry as a PDF newsletter every weekday.

Register for Travel Daily trial subscription

To sign up for a free 14-day trial, click on the button at right.

Click here to see a sample issue of Travel Daily.

Click here for more information on subscriptions.

Alternatively, you can search our site or find other content below.

Recent Travel Daily articles

24 Mar

Travel Specials 24 Mar 17 - WELCOME to Travel Specials, Travel Daily's Friday ...


24 Mar

Window Seat 24 Mar 17 - AMERICAN Airlines has created a buzz after ...


24 Mar

Beauty & the Beast preview - DISNEY Parks & Resorts treated five agents ...


24 Mar

Agents fall for Ontario Charms - WITH preparations well underway for Canada's 150th ...


24 Mar

Beyond cruising to Croatia - BEYOND Travel yesterday formally launched what is ...


24 Mar

SKIMAX/AA show off Park City - SKIMAX and American Airlines recently host 10 ...


24 Mar

My Travel Group anniversary - MY TRAVEL Group agents recently gathered together ...


24 Mar

Express takes the castle - THIS group of Express Travel Group agents ...


24 Mar

TIME’s fourth Perth event - THE Travel Industry Mentor Experience continues its ...


24 Mar

Resident Historians - VIKING Cruises has announced the rollout of ...


24 Mar

AF rejects HNA tie-up - CHINESE group HNA who has a stake ...


24 Mar

Movenpick to Oman - MVENPICK Hotels & Resorts has inked an ...


24 Mar

Viceroy tri-branding - VICEROY Hotel Group has announced its portfolio ...


24 Mar

QF Jetstar seminars - QANTAS Agency Partnerships will host a series ...


24 Mar

Home Valley to open - WESTERN Australia's Home Valley Station in the ...


24 Mar

P&O AKL Cup cruise - P&O Cruises will this year offer its ...


24 Mar

Grocer into DXB - DUBAI International Airport will soon feature a ...


24 Mar

La Siesta Hoi An - ELEGANCE Hospitality Group has announced it will ...


24 Mar

Last chance for UMI - G ADVENTURES UMI in the Jungle incentive ...


24 Mar

Dubai record growth - DUBAI Tourism has reported a 12% year-on-year ...



Show Travel Daily items by month: