TravelMole
Agent

Qantas surcharge commission appeal faces public importance test

Monday, 31 May 20103 min read

Qantas will seek the help of the High Court to avoid repaying millions of dollars to Australian travel agents for commissions it has withheld in a dispute over the fuel surcharge the airline had imposed on passengers.

On 5 May a full bench of the Federal Court ruled the surcharge was simply part of the fare determined by Qantas, and not a “tax, fee or charge" and that therefore Qantas should have been including it in its base when calculating the commissions it pays to agents.

On Thursday (27 May) Qantas announced that it is to seek special leave to appeal the Federal Court decision, requiring it to pay millions of dollars of commission and interest accrued.

TM spoke to a prominent expert in commercial litigation who explained that there’s no automatic right to appeal and that, to be granted, it has to satisfy the Court that it would be a matter of public importance.

Of 2,300 travel agents, 500 opted out of the class action; leaving 1,800, mostly owner-managed agencies who will benefit should QF’s attempted appeal fail

The matter will return to court on 2 July

Philip Thorniley