Qantas accused of threatening travel agents
With Qantas accused of threatening to cut commissions to travel agents participating in an $80 million class action against the airline, Steven Lewis of Slater & Gordon, who is running the class action, last week applied for a Federal Court injunction to prevent Qantas from using the threat as a bargaining tool in commercial agreements it is negotiating with its agency partners.
Steven said, “We believe the case should be dealt with on its merits without Qantas interfering”, adding that Slater & Gordon had only become aware of the alleged threats by Qantas in recent weeks and implied that Jetset Travelworld had withdrawn from the action rather than risk earning lower commissions.
However a spokesman for Jetset Travelworld said the agency had publicly declined to join the class action in November 2006, also confirming that Jetset Travelworld agency network did earn over-ride commissions from Qantas, adding, “There are commercial arrangements in place where targets are set,” “We enjoy a positive relationship with Qantas and Qantas Holidays, because we’re a very profitable network.”
Harvey World Travel withdrew from the class action for commercial reasons on November 14.
Salter & Gordon filed notice of the class action in the Federal Court on December 15 last year, with the $80 million claim alleging Qantas and five other international airlines failed to pass on more than $80 million in ticket commissions flowing from higher fuel surcharges.
Slater & Gordon says that the commercial agreements between the airlines and travel agents include over-ride commissions which can be up to double the standard commission an agent receives on ticket sales. The commissions are earned by travel agents when they exceed agreed sales volume targets and are linked to the level of fuel surcharge on a ticket.
According to Slater & Gordon, over-ride commissions have been a feature of agreements between Qantas and its agency partners for a long time, with a Qantas spokesman denying the claims made by Slater & Gordon.
“Qantas is not attempting to force agents to opt out of legal action.” “We will defend our position vigorously,” the spokesman said.
The announcement by Slater & Gordon came just a day after Qantas admitted its international freight division had earned more than $600 million while engaged in illegal price fixing involving fuel surcharges.
Qantas said it would pay a $70 million fine and co-operate with an investigation by the US Department of Justice and the FBI into fuel surcharge rorts.
The ACCC is also investigating the allegations.
A Report by The Mole with material from news.com.au
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