AFTA has revealed Australia Post has requested to be exempt from licensing regimes in Australia, including TCF membership, to allow the sale of Jetstar domestic tickets from its corporate outlets (Post Offices) and licensed post offices (Post Shops) and has urged travel agents across Australia to take action against the proposal immediately. 

A letter sent to AFTA by the Department of Justice (Consumer Affairs) in Victoria acting on behalf of the Standing Committee of Consumer Affairs (SCOCA) advised the request from Australia Post for the proposed arrangement with Jetstar, and subsequently SCOCA is now investigating whether an exemption was consistent with national competition policy and the objectives of the present regulatory regime. 

Australia Post in conjunction with Jetstar has proposed a service for booking and payment in real time, and if any exemption is granted, it would also be open to travel agents selling on the same basis.  It is also further envisaged that any exemptions offered would also be extended to other airlines where the same arrangements are in place according to AFTA.

CEO Mike Hatton raised concerns and said it would be conceivable that these exemptions could be extended to other airline domestic ticket sales through retail outlets such as department stores and petrol stations.

“Whilst at this time the application is limited to domestic Jetstar ticket sales, who is to say that any future application will not extend to international ticket sales given Jetstar’s announced intention to commence international operations?” Mr Hatton said in a statement released today.

“AFTA has lodged a submission with the Victorian Department of Justice and has clearly stated that such a requested exemption flies in the face of the present regulatory scheme governing the licensing and TCF membership of Australian travel agents, and that the proposed Australia Post method of sale for Jetstar domestic tickets is identical to that employed by licensed Australian travel agents,” he said. 

“Given that there is no difference in the proposed method of sale to present travel agency operations surrounding Jetstar, it is AFTA’s contention that no exemption should be considered or granted.”

AFTA said that if the proposal was to proceed, then every Australia Post Corporate office and Post Shop must be licensed as a travel agency and be a member of the TCF.

“Australia is a free nation and any company or person may apply to become a travel agent, but any such applicant must do so on the basis of a level competitive playing field and as part of the regulatory scheme as it applies to the travel agent industry. There can be no exemptions to the present scheme unless it is a decision of all participating states to abandon the scheme completely for all Australian travel agents,” Mr Hatton said.

An in depth submission to SCOCA regarding the reform of the present travel agent regulatory regime in Australia has recently been lodged by AFTA. 

“It is AFTA’s strongly held view that NO change to the present scheme should be contemplated by SCOCA until such time as there has been an in depth review of AFTA’s proposals combined with widespread discussion of those proposals with the industry. I might add that this submission was made as part of a review initiated by SCOCA,” Mr Hatton said.

“Put simply it is not tenable for regulation in Australia to be abandoned for one and not for all, and given state governments adherence to the present scheme it is not a viable proposition for any major entity such as Australia Post to be given an exemption to a regulatory scheme that is applied to thousands of small business operators.”

Mr Hatton said whilst AFTA has brought his matter to the attention of the Victorian government Department of Justice, in AFTA’s view it is also a matter that affects every individual agency as any exemption would give Australia Post and Jetstar an unfair preferential competitive position in the Australian market place.

AFTA has encouraged travel agents to take action by sending a letter produced by AFTA to state members and making the industry’s view known on what it calls an “unfair anti-competitive proposal”. 

Travel Agents not already in receipt of the letter against the proposal should contact AFTA for a copy or to discuss this issue further.