Flight Centre in new attack on airlines
BRISBANE – Flight Centre’s hardline approach to airlines shows no sign of letting up.
The retailer, with 800 outlets in Australia, has taken Singapore Airlines off its list of 40 preferred airlines, and told staff to stop promoting SIA to clients.
Now Flight Centre is threatening to punish “recalcitrant†airlines that undercut it on the Internet.
The company’s tough attitude is being encouraged by the difficulty airlines are having in selling seats during hard economic times, and their greater need to use travel agents for sales.
The latest threat is contained in a newsletter, Skroo News, sent to Flight Centre managers by the chain’s managing director, Graham “Skroo” Turner.
According to a copy of the newsletter seen by The Australian, Flight Centre warns, “Again, these poor economic times give us a chance to get at and punish those carriers (only one or two) who are trying to undercut us on the web, thus costing us in price beatsâ€, referring to Flight Centre’s policy to beat any cheaper available price.
It names Malaysia Airlines and a possible Middle Eastern carrier as potential targets.
The Middle East airline is believed to be Emirates.
Flight Centre spokesman Haydn Long told The Australian that the argument about airlines undercutting travel agents had been going on for some years.
“The reality is the airlines need our business at the moment; most of them are losing money,” he said.
“Some haven’t been paying properly for the millions of dollars worth of sales that we generate each year.”
Ian Jarrett
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