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.

This 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

11 Feb

Kogan price grntee - KOGAN.COM has revealed its push into Kogan ...


11 Feb

Hawaii dengue worry - A STATE of emergency was declared by ...


11 Feb

Burnes bites back at FCTG - HELLOWORLD chief Andrew Burnes yesterday unleashed on ...


11 Feb

Robb to exit politics - THE Turnbull Govt’s Minister for Trade and ...


11 Feb

JQ rejigs group bookings - QANTAS Group’s leisure carrier Jetstar is refining ...


11 Feb

SureSave Zika policy - INSURANCE provider SureSave has confirmed pregnant women ...


11 Feb

Window Seat 11 Feb 16 - IMAGINE something the height of six double-decker ...


11 Feb

EY/GA c’share grows - ETIHAD Airways and Garuda Indonesia have broadened ...


11 Feb

Virgin records H1 growth - VIRGIN Australia Group (VAH) has recorded massive ...


11 Feb

TD breaking news – Virgin Australia pre-tax H1 FY15 profit - VAH Underlying EBIT improves $107mVirgin Australia Group ...


10 Feb

TD breaking news – Helloworld slams Flight Centre’s unbranded buying group - Burnes labels FCTG content buying move "disingenuous"Newly ...


10 Feb

Expedia TAAP Top Ten Destinations: 10 Feb 16 - Expedia TAAP exploded into the year reporting ...


10 Feb

Island Air sale nod - THE sale of Hawaiian carrier Island Air ...


10 Feb

Crooked backpacks - CROOKED Compass has formed a new partnership ...


10 Feb

New George St hotel - WOODS Bagot has applied to build a ...


10 Feb

Aloft/Element Boston - STARWOOD Hotels & Resorts Worldwide has opened ...


10 Feb

Accommodation Updates 10 Feb 16 - Renovations and a new restaurant have breathed ...


10 Feb

Accommodation Updates 10 Feb 16 - Fairmont Kea Lani in Maui has given ...


10 Feb

Accommodation Updates 10 Feb 16 - The Kensington townhouse hotel in west London ...


10 Feb

REX Cooma boost - REGIONAL Express (Rex) is adding extra Snowy ...



Show Travel Daily items by month: