Major Australian travel firm Flight Centre has denied allegations from the competition watchdog that it had tried to induce three international airlines into a price-fixing arrangement.
An Emirates airline plane is pictured as it takes off at Sydney Airport. Major Australian travel firm Flight Centre has denied allegations from the competition watchdog that it had tried to induce three international airlines, including Emirates, into a price-fixing arrangement.
The Australian Competition and Consumer Commission (ACCC) took its case to the Federal Court in Brisbane on Friday.
It alleges that on six occasions between 2005 and 2009, Flight Centre tried to get Singapore Airlines, Malaysia Airlines and Emirates to agree to stop directly offering and booking their own international airfares, including over the Internet, at prices lower than Flight Centre offered.
The watchdog said that Flight Centre's prices included the cost of the airfare, which was then paid to the carrier, as well as its own commissions.
"It is alleged 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 said in a statement,
Flight Centre's managing director Graham Turner said the case would be strongly defended.
"We think this is a red herring," Turner told ABC Radio. He added: "We will be defending it. Our lawyers are very confident they don't have a case."
Turner said the case may have been sparked by legitimate discussions between Flight Centre and the airlines, adding that the firm had clearly outlined its position to the ACCC when it first asked for information three years ago.
"It's important to us that we have access to all their fares, and that might be what they're talking about," he said.
"For us, it's really important that our customers actually have access to all the airfares that are available and that's the only thing we ever did with any of the airlines. And I think the airlines would agree with that."
The ACCC is seeking declarations, injunctions, financial penalties and costs in the case, which is set down for a directions hearing on April 13.
Flight Centre, which has more than 2,000 shops and businesses in 11 countries, said in a statement to the Australian stock exchange Friday that it it had built its reputation on making travel more affordable.
"It is not in the business of making airfares more expensive and does not ask suppliers to raise prices or withdraw fares," Turner said in the statement.
"As an agent, FLT (Flight Centre Limited) asks for adequate commissions from airlines and other suppliers and also reasonable access to all fares that they release to the market."