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Flight Centre wins $11m appeal

The breaches were for approaches to Singapore Airlines, Malaysia Airlines, and Emirates.

The breaches were for approaches to Singapore Airlines, Malaysia Airlines, and Emirates. Photo: Supplied.

Flight Centre has won an $11 million refund with interest after successfully appealing a price fixing case.

The Federal Court on Friday overturned a 2013 judgment that saw Flight Centre fined $11 million over six alleged breaches of the Trade Practices Act.

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The consumer watchdog, the Australian Competition and Consumer Commission, had accused Flight Centre of breaching the Trade Practices Act between 2005 and 2009 by insisting the airlines it worked with not offer cheaper prices directly to customers than were available to the travel retailer.

However the full bench of the Federal Court found, on appeal, Flight Centre did not breach the Act because airlines and the travel agents were not in competition.

“The Full Court allowed Flight Centres appeal, finding that there was no separate market for booking and distribution services to consumers, and as a consequence that Flight Centre and the airlines did not compete with each other in such a market,” said the ACCC in a statement after the court decision.

The court also ordered the watchdog to pay Flight Centre’s legal fees.

Flight Centre chief executive Graham Turner welcomed the decision and again defended his company’s actions.

“As an agent that provides considerable advice and help to the travelling public and extensive marketing for airlines, FLT asks for appropriate commissions from suppliers and also reasonable access to all deals that they release to the market,” he said in a statement.

“This is a logical and natural business request for an agent to make to ensure the customers it serves on behalf of airlines are not disadvantaged.”

While the ACCC said it will consider the judgment carefully, it remained undeterred by the loss from pursing future cases.

“Pursuing anti-competitive agreements and practices to protect consumers remains one of the ACCC’s enduring enforcement priorities,” said ACCC chairman Rod Sims.

Flight Centre shares were down 12 cents at $35.39 at 1308 AEST.

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