Airlines loose Federal court case in Australia

IATA Travel agents expect a windfall payout of about A$ 80 million. Some Philippine agents also to benefit

 

Sydney

 

By Lolita Tan

 

Thanks to Steven Lewis Australian travel agent with IATA Fares 1 & 2 certificate turned lawyer. Australian Travel agents can expect a windfall payout from various airlines in unpaid commissions.

 

The problem was generated by the airlines eagerness to cut down on commission payments and the introduction of the “fuel surcharges” which is shown separately in the tax box of the tickets and thereby not considered for commission payments. There are cases where the fuel surcharge actually exceeds the actually airfare as shown in the ticket.

 

Mr. Lewis augmented successful that the full surcharge is part of the ticket cost and should be included in the total fare and thereby commissionable.

 

Even back in 2000 there was already a court finding in the UK   that this fuel surcharge forms part of the commissionable airfare but airlines ignored his warnings and introduced the surcharge in Australia and other markets.

 

 

Consequently Mr. Stevens lodged a class action against the airlines and won.

 

The court found that the airlines had indulged in deceptive behavior and the judgment  entitles IATA agents to recover commissions they should have been paid on fuel surcharges.

 

Not all airlines followed this practice and some airlines always paid commission on the complete fare including the fuel surcharge.

 

Currently the total amount owing to the travel agent is to be determined by the court.

 

Those Philippine based travel agents who purchase tickets from supplier in Australia should also be expecting a substantial refund.