Bad news for QF, great news for TA's

[Mal]

Congrats to the litigants!

I recall this case from a few years ago, and really wanted them to win. I'm not a big fan of TA's, but the practice of making fuel surcharges a non-operating expense is a joke.

[simongr]

I am not 100% sure on this. It only changes how TAs are remunerated not the underlying YQ system. This is great for the TAs but does mean that QF has to find $80M from somewhere - and we all know who that will be...

[drron]

I am not 100% sure on this. It only changes how TAs are remunerated not the underlying YQ system. This is great for the TAs but does mean that QF has to find $80M from somewhere - and we all know who that will be...

I welcome the decision but I entirely agree with your sentiments.Costs up= higher ticket prices.

[serfty]

I welcome the decision but I entirely agree with your sentiments.Costs up= higher ticket prices.

More specifically, all other things being equal, costs the same, commissions up.

However, things won't be equal and I think the airlines are more likely to try to squeeze the TA's even more after this.

[greeceplan]

Thats good news may they learn good lesson from this .

[Mal]

I am not 100% sure on this. It only changes how TAs are remunerated not the underlying YQ system. This is great for the TAs but does mean that QF has to find $80M from somewhere - and we all know who that will be...

I agree that it's likely that the $$$ will have to be found elsewhere. But my reasoning as to why it is so good, is that it removes a good proportion of commercial sense to have fuel fines. If they're paying commission on them to TA's, you may well see them being rolled back into the fare etc.

They are a pita to calculate for all concerned, and I'm sure there doesn't need to be too much justification to roll them back in. (Of course redemption tickets and staff travel are still cash cows with no comission... so perhaps it's dreaming that anything positive to travellers (who don't use TAs) will happen. If you do use a TA, perhaps they will lower their fees (due to more commission) or be able to offer larger discounts.

[oz_mark]

It seems that Qantas went off to the High Court with this one, and lost

QANTS Airways Ltd may be forced to pay back millions of dollars in commissions to travel agents after it failed in a bid to overturn a Federal Court ruling.

The High Court today dismissed an application by the national carrier to challenge a May 4 Federal Court ruling relating to commissions on fuel surcharges.

Qantas facing payback of commissions | Herald Sun

[oz_mark]

As a bit of a postscript to this, from yesterday Qantas began paying base commission on fuel surcharges. Now to see if other airlines follow.

[Nigelinoz]

From Travel Tofay.
http://www.travelweekly.com.au/getat...2946a/pdf.aspx

Cathay Pacific, British Airways
and Singapore Airlines are
expected to come under pressure
to follow the move by Qantas last
night and finally start paying
commission on fuel surcharges

Cheers
N'oz

[oz_mark]

Given CX and SQ just announced fuel surcharge increases, they should