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Court told Flight Centre threatened airline

Thursday, 11 October 2012

 
 

And the saga continues for Flight Centre

A Brisbane Federal Court was told Flight Centre made an “implicit threat” to Singapore Airlines in an attempt to maintain the agency group’s commissions.

Barrister Keith Wilson, SC, claimed the "unequivocal message" to pressure Singapore Airlines into a deal was "a plain case of price fixing" by Flight Centre, the Courier Mail reported.

According to sources, Flight Centre attempted to boycott the airline with a slow sell/stop sell policy, advising agents to avoid selling the airline’s tickets and not recommend its services.

The court heard that a company senior executive emailed Singapore Airlines asking, "Why do you go out of your way to undercut travel agents?” and later suggests in internal communications that the agency group would “need to be more strategic in control of distribution, so it's important to know Singapore Airline's intentions”.

Mr Wilson pointed out the loss of commission on those tickets sold direct to the public by Singapore Airlines was a serious issue for Flight Centre.

The barrister read out an email from Flight Centre chief executive Graham Turner to Singapore Airlines in May 2009, asking for "a total guaranteed margin" and "an agreement that we will not be undercut on the web".

"We as retailers have a lot more control on who people fly with," Mr Turner’s email read, warning that Flight Centre had the power to influence its customers.

Flight Centre vigorously denies allegations by the Australian Competition and Consumer Commission (ACCC) that they schemed with Singapore Airlines, Malaysian Airlines and Emirates to set ticket prices and keep commissions high.

The trial continues today.

Source = e-Travel Blackboard: K.W
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