The Australian Competition and Consumer Commission has just announced that it’s instituted proceedings in the Federal Court in Brisbane against Flight Centre Limited, alleging that the company “attempted to induce competitors to enter into price fixing arrangements with it”.
According to the ACCC allegations, on six occasions between 2005 and 2009 Flight Centre attempted to induce a number of international carriers including Singapore Airlines, Malaysia Airlines and Emirates, to agree to stop directly offering and booking their own international airfares (including over the internet) at prices less than Flight Centre offered.
Flight Centre is claimed to have been in competition with the airlines’ internal sales divisions, and that “the purpose and likely effect of the arrangements sought by Flight Centre was to maintain the level of Flight Centre’s commissions”.
The ACCC alleges that such arrangements constitute price fixing arrangements, in contravention of section 45 of the Competition and Consumer Act 2010.
The ACCC is seeking declarations, injunctions, costs and penalties against Flight Centre, with a directions hearing listed for Friday 13 April 2012.
More information in Monday’s Travel Daily.
This Travel Daily breaking news brought to you by Virgin Australia.