Agents fail in fuel surcharge class action against Qantas

[Travel Guru]

From Travel Today


Travel agents have failed in their long-running class action against Qantas for the non-payment of commission on fuel surcharges.

But in a Federal Court ruling, the airline was found to have engaged in misleading and deceptive conduct by including the levy under the “taxes, fees and charges” code.

In a brief hearing yesterday, Justice Michael Moore ruled that the applicants, Leonie’s Travel, had failed in its claim that Qantas was in breach of contract by not paying commission on the fuel surcharge.

In his 44-page judgement, Justice Moore said Qantas, in his opinion, had since May 2004 “exercised its contractual right to determine the manner and amount of agents’ remuneration”.

The airline determined that commission was payable on the total price, less the amount payable to Qantas as the fuel surcharge, he said.

But he ruled in favour of Leonie’s Travel in the second claim that Qantas engaged in misleading and deceptive by including the levy as tax, fee or charge. Such charges are imposed by air transportation and government authorities only, he said.

“The fuel surcharge is not a tax, charge or fee imposed by governments, authorities or airport operators,” he ruled.

Although action was also bought against other airlines, proceedings initially only continued against Qantas, which acted as a test case.


TG

 

[Mal]

But in a Federal Court ruling, the airline was found to have engaged in misleading and deceptive conduct by including the levy under the “taxes, fees and charges” code.

I am glad that this finding has been made. I've always maintained that it is shonky behaviour from Qantas and friends to label it in the way it was labelled and hidden away.

I wonder if this will lead to a class action for people who redeem Frequent Flyer rewards and other tickets which only are supposed to charge taxes etc.

While I can't see it leading to any benefit for those who paid it as part of a revenue ticket, that possibility could possibly exist.

<scurries away looking at my options>

 

[Mal]

And looking at some of the various ways Qantas has described the extras on Award tickets since the introduction of Fuel Surcharges:

"Additional charges and taxes, including the Australian Passenger Movement charge, are payable on Award flights at the time of booking. These taxes and charges may be subject to GST."

"Additional taxes, levies and charges (including applicable taxes and insurance surcharges) are payable in cash on Award flights at the time of booking. These taxes and charges may be subject to GST. Alternatively point levels inclusive of taxes, levies and charges (including applicable fuel and insurance surcharges) are offered during the Award booking process on eligible Australian and New Zealand domestic Award flights."

"Additional surcharges, fees and taxes (including applicable taxes and insurance surcharges) are payable in cash on Qantas & Partner Classic Award flights at the time of booking. These taxes and charges may be subject to GST. Alternatively when booking online, point levels inclusive of surcharges, fees and taxes (including applicable fuel and insurance surcharges) are offered during the Qantas & Partner Classic Award booking process on eligible Australian and New Zealand domestic Classic Award flights."

And in the T&Cs over various times:

"10.1.2 Members will be personally liable for any and all costs, taxes, charges, claims or liabilities of whatever nature (including without limitation all ticket taxes) arising from the provision or availability of any Awards or Benefits whether these are provided by Qantas, a oneworld Alliance Airline or by a Frequent Flyer Partner Airline or Frequent Flyer Partner Service."

"12.2 Members will be personally liable for any and all costs, taxes, GST, charges, claims or liabilities of whatever nature (including all ticket taxes) arising from the provision or availability of any Awards or Benefits whether these are provided by Qantas, a oneworld Alliance Airline, an Airline Partner or a Non-airline Partner."

"12.2 In addition to the Points required for an Award Flight or other Award, Members must pay any and all identified surcharges (including fuel and insurance surcharges), charges, fees, GST and taxes (including all ticket taxes). This applies to all Award Flights, Awards or Benefits whether these are provided by Qantas, a oneworld Alliance Airline, an Airline Partner or a Non-airline Partner."

"14.3.1 In addition to the Points required for a Classic Award, Members must pay (or, where offered, redeem Points for) all identified surcharges (including fuel and insurance surcharges), charges, fees, GST and taxes (including all ticket taxes). This applies to all Classic Awards, whether these are provided by Qantas, a oneworld Alliance Airline or an Airline Partner. Further information about taxes and charges applicable to Classic Award bookings."


Hmmm. I'll leave this one to the class action lawyers / ACCC to think about

 

[albatross710]

I've only just noticed over the last week that websites are starting to itemise the fees and charges.. I wonder if they/airlines have been forced to through this case. On a Webjet booking to Italy they appear as:

Passenger Movement Charge $ 47.00
Tax MJ $ 1.20
City Council Tax - ITALY $ 9.10
Security Tax $ 3.70
Embarkation Tax $ 15.20
Safety and Security Charge $ 9.22
Security Bag Charge $ 4.2

Better transparency is a good thing.

 

[Mal]

The writeup of the Federal Court's decision is here: Leonie's Travel Pty Limited v International Air Transport Association [2009] FCA 280 (30 March 2009)

 

[JohnK]

I am glad that this finding has been made. I've always maintained that it is shonky behaviour from Qantas and friends to label it in the way it was labelled and hidden away.

This is a good decision for the average traveller and we may finally see transperancy in what are "real" taxes and surcharges and the fuel surcharge return to where it belongs hidden somewhere in the base airfare.

 

[bambbbam2]

I've always maintained that it is shonky behaviour from Qantas and friends to label it in the way it was labelled and hidden away.

Yes I think that way too. However if you look at things like new car sales, it has been happening for years that dealers advertise price X, then compulsory charges are added on top.

I wonder why there is not the yelling over that issue?