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

26 Jun

Brochures 26 Jun 17 - WELCOME to Brochures of the Week, Travel ...


26 Jun

Window Seat 26 Jun 17 - NOW this is what we call customer ...


26 Jun

Nashville is in the building… - AUSTRALIANS comprise the third biggest group of ...


26 Jun

APT celebrates its staff at 90th - APT Travel Group (ATG) staff were recognised ...


26 Jun

Si Holidays to challenge OTAs - SI GROUP showcased its Balmain-based headquarters to ...


26 Jun

Aqua-Aston loving Australia - HAWAIIAN hospitality group Aqua-Aston Hotels showed its ...


26 Jun

Travel industry chiefs unite - A Liberal Party dinner in Sydney on ...


26 Jun

Melia Melaka - MELIA Hotels has unveiled the signing of ...


26 Jun

GBR valued at $56b - THE Great Barrier Reef Foundation has released ...


26 Jun

BARA signs up AA - THE Board of Airline Representatives of Australia ...


26 Jun

PG lifts baggage fees - BANGKOK Airways will raise its baggage fees ...


26 Jun

Expedia rail tech deal - EXPEDIA has completed its acquisition of a ...


26 Jun

Dorchester appoints - DORCHESTER Collection executive Eugenio Pirri will take ...


26 Jun

EY/CZ codesharing - ETIHAD Airways has begun a new codeshare ...


26 Jun

Fish market revival - THE Sydney Fish Market is set for ...


26 Jun

WA Tourism chair out - THE West Australian government has thanked outgoing ...


26 Jun

AA to strengthen NZ - AMERICAN Airlines has said it will "come ...


26 Jun

Six Senses for Ibiza - SIX Senses Hotels Resorts Spas has confirmed ...


26 Jun

Delta, Korean tie-up - DELTA Air Lines and Korean Air have ...


26 Jun

USA & Canada boost - TRAFALGAR has introduced six new itineraries in ...



Show Travel Daily items by month: