Flight Centre's attempts to fix the value of tickets with three airlines so its "price beat guarantee" didn't reduce the company's profits has ended up costing it $12.5 million. It resulted from approaches Flight Centre made to Malaysia Airlines, Singapore Airlines and Emirates asking the airlines to commit to "allowing us a margin to operate", the Federal Court found. "The three airlines in question, on websites run by them, sold tickets directly to the public at a price lower than the fare published to travel agents, including Flight Centre," Justices James Allsop, Jennifer Davies and Michael Wigney said. "This required Flight Centre, if it were to beat that price, to sell the ticket, on behalf of the airline, at a price which either reduced or eliminated its commission or margin." Full story at https://www.smh.com.au/business/companies/flight-centre-cops-12-5-million-fine-for-price-fixing-20180404-p4z7p9.html
I refer the member to The Hon Anthony Albanese's media statement on news that Sydney Airport Corporation Chairman Max Moore-Wilton plans to retire (26 March 2015):
"Good."
Last editedby watson374 at Apr 04, 2018, 01:36 PM.
What a woefully inadequate fine. It should have been 10 times this amount. Not to mention the fact that the Flight Centre executives have gotten away scot free. In my view they should be facing many years in jail. With such weak penalties no wonder poor business practices, unethical behaviour, and illegal conduct is rife within Australian businesses.
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Flight Centre fined $12.5 million for price fixing
John Odlum
John Odlum
Member since 13 Sep 2016
Total posts 15
Flight Centre's attempts to fix the value of tickets with three airlines so its "price beat guarantee" didn't reduce the company's profits has ended up costing it $12.5 million.
It resulted from approaches Flight Centre made to Malaysia Airlines, Singapore Airlines and Emirates asking the airlines to commit to "allowing us a margin to operate", the Federal Court found.
"The three airlines in question, on websites run by them, sold tickets directly to the public at a price lower than the fare published to travel agents, including Flight Centre," Justices James Allsop, Jennifer Davies and Michael Wigney said.
"This required Flight Centre, if it were to beat that price, to sell the ticket, on behalf of the airline, at a price which either reduced or eliminated its commission or margin."
Full story at https://www.smh.com.au/business/companies/flight-centre-cops-12-5-million-fine-for-price-fixing-20180404-p4z7p9.html
mviy
mviy
Member since 05 May 2016
Total posts 322
Companies shouldn't advertise what they can't deliver.
watson374
watson374
Qantas - Qantas Frequent Flyer
Member since 17 Aug 2012
Total posts 1,285
I refer the member to The Hon Anthony Albanese's media statement on news that Sydney Airport Corporation Chairman Max Moore-Wilton plans to retire (26 March 2015):
"Good."
AlexTravAddict
AlexTravAddict
Qantas - Qantas Frequent Flyer
Member since 17 May 2015
Total posts 41
What a woefully inadequate fine. It should have been 10 times this amount. Not to mention the fact that the Flight Centre executives have gotten away scot free. In my view they should be facing many years in jail. With such weak penalties no wonder poor business practices, unethical behaviour, and illegal conduct is rife within Australian businesses.