Travel Agent Commission and Fuel Surcharges Revisited

In our bulletin on 30 July 2009 we reported on the decision of Justice Moore in the Federal Court of Australia in Leonie's Travel Pty Ltd v International Air Transport Association, Qantas Airways Limited & Ors.Qantas was found not liable to pay travel agent commissions and to have not breached its contract with the travel agents. That decision has now been overturned on appeal to the Full Court of the Federal Court of Australia in Leonie's Travel Pty Ltd v Qantas Airways Limited [2010] FCAFC 37.

The issue in both decisions was whether Qantas was entitled to unilaterally determine that no commission would be payable on that part of the cost of the ticket which relates to the fuel surcharge imposed by the airline.