The High Court has today dismissed an application by Qantas to challenge a Federal Court ruling in May that it owes commissions to travel agents it has short changed for more than six years.
The May Full Federal Court of Australia decision concerned Qantas failing to include fuel surcharges when calculating the commission paid to agents on international ticket sales.
As a result of the High Court decision the case now goes back to the primary judge in the Federal Court, Justice Moore, to determine the amount of commission which is payable by the airline to travel agents.
In evidence to the Federal Court, Qantas said the cost of paying commissions on fuel surcharges up to 2007 would be more than $26 million. This figure will have increased considerably over the past four years.
The victory is part of a class action by travel agents against Qantas, Air New Zealand, British Airways, Cathay Pacific Airlines, Singapore Airlines and Malaysian Airlines, which started in December, 2006.
Slater & Gordon lawyer, Steven Lewis said it is now time for Qantas to sit down with the travel agents and resolve this long running dispute.
“Qantas has had its day in Court and its excuses for not paying the commission have been rejected by the Court.
“The mum and dad travel agents, which make up the bulk of our clients, now need to be paid what they are owed and allowed to get on with their businesses,” Mr Lewis said.
Michelle Silvers, Managing Director and Chief Executive Officer of Litigation Lending Services, which funded the case, said the win was a great victory for small business.
“For more than six years Qantas has been short changing travel agents. This is a great victory that could have implications across the international airline industry,” Ms Silvers said.
In dismissing the application the High Court said the construction of the Passenger Sales Agency Agreement, the contract between airlines and travel agents, as determined by the Full Federal Court is correct.