Qatar-Virgin deal set to get go ahead

The airline landscape in Australia is set for a major re-set with the consumer watchdog proposing to grant authorisation to Virgin Australia and Qatar Airways which will allow them to engage in co-operative conduct under an integrated alliance for five years.

Virgin Australia and Qatar Airways are seeking authorisation to engage in an integrated alliance where Virgin Australia, in partnership with Qatar Airways, will commence 28 new weekly return services between Doha and Perth, Brisbane, Sydney and Melbourne.

Under the proposed arrangements, Virgin Australia would use Qatar Airways’ aircraft and crew to operate the new services. This is known in the aviation industry as ‘wet lease’ arrangements.

The ACCC said today that it considers that the proposed co-operative conduct is likely to result in public benefits and is unlikely to result in any public detriment. 

Which will likely infuriate Virgin competitor Qantas.

"We consider that the proposed co-operative conduct would likely result in several public benefits including providing enhanced products and services for air travellers which would include increased choice of international flights, with additional connectivity, convenience and loyalty program benefits for consumers,” ACCC Commissioner Anna Brakey said.

The new air services are subject to final regulatory approvals by the ACCC and other government bodies. 

The ACCC is now seeking feedback on this draft determination before it makes a final decision.

The ACCC granted interim authorisation to Virgin Australia and Qatar Airways on November 29 to enable them to commence marketing and selling the new Australia-Doha services.

When granting interim authorisation, the ACCC accepted a court-enforceable undertaking from both airlines which ensures that if any of the necessary final regulatory approvals are not granted, then customers who have booked the proposed new services will be given the option of a refund or re-accommodation on a suitable alternative flight at no additional charge and would be compensated for any reasonably foreseeable costs.

A number of interested parties have since raised concerns with the ACCC that the proposed co-operative conduct would circumvent Australian workforce laws and regulations, and that the lack of time limits on the use of Qatar-based crew to operate the new services will have negative implications for the Australian aviation workforce.

“We consider that Virgin Australia is unlikely to commence operating long-haul international services between Australia and the Middle East on a stand-alone basis in the next five years,” Brakey said.

“In those circumstances, we do not consider that there is likely to be a material detrimental impact on the Australian aviation workforce as a result of the conduct.”

Under the proposed arrangements Velocity Frequent Flyer members will continue to be able to earn and redeem Velocity points on Singapore Airlines operated services globally, including to and from Europe, the Middle East and Africa. 

Virgin Australia’s arrangements with South African Airways and Virgin Atlantic would be unchanged. 

The ACCC is seeking submissions in response to the draft determination by March 7 before making its final determination.

Qatar deal gets go ahead in boost for Virgin Australia

Virgin Australia and Qatar Airways have been given the go ahead to start selling 28 weekly return flights between Doha and Brisbane, Melbourne, Perth and Sydney.

The Australian consumer watchdog, the ACCC, has granted interim approval to Virgin and Qatar, allowing them to engage in cooperative conduct under an integrated alliance.

The ACCC has also accepted a court enforceable undertaking from Virgin Australia and Qatar Airways in relation to the conduct.

Under the interim authorisation, Virgin Australia and Qatar Airways can commence marketing and tickets.

The new services will be in addition to the international services already operated by Qatar Airways.

The airlines sought urgent interim authorisation to enable Virgin Australia to start flying its new Australia-Doha services from Sydney, Melbourne and Brisbane in June 2025, with Perth services to follow in November 2025.

”We consider that granting interim authorisation now will allow Qatar Airways and Virgin Australia the lead time to undertake the necessary planning discussions, marketing, selling and system alignment in preparation for Virgin Australia to commence flying the new services by June 2025,” ACCC Deputy Chair Mick Keogh said

The new services will be offered subject to final regulatory approval by the ACCC and other government bodies.

The undertaking accepted by the ACCC today ensures that if final regulatory approval is ultimately not granted, then customers who have booked these proposed new services would be protected.

“Affected customers will be given the option of a refund or re-accommodation on a suitable alternative flight at no additional charge and would not be out of pocket for any reasonably foreseeable costs if these proposed new services ultimately don’t get approved,” Keogh said.

“Having this court-enforceable undertaking that protects customers was important to our decision to allow Virgin Australia and Qatar Airways to start selling tickets now.”

Under the proposed arrangements, Virgin Australia would use Qatar Airways craft and crew to operate the new services. This is known in the aviation industry as a ‘wetlease’ arrangement.

“We are carefully considering the concerns that interested parties have raised, particularly around the wetlease arrangements and the impact of the proposed exclusivity arrangements between Virgin Australia and Qatar Airways,” Keogh said.

Under the proposed arrangements Velocity members will continue to be able to earn and redeem Velocity points on Singapore Airlines’ operated services globally, including to and from Europe, the Middle East and Africa.

Virgin Australia’s arrangements with South African Airways and Virgin Atlantic would be unchanged.

Qatar Airways and Virgin Australia have sought authorisation for five years.

The ACCC is expected to release a draft determination in February 2025.

There was no explicit mention made in the ACCC release of granting approval for Qatar Airways' proposed 25% purchase in VA.

Consumer watchdog accuses Webjet of making false claims and misleading customers

Australia's consumer watchdog has charged online travel booking site Webjet with making false and misleading claims to customers.

The ACCC said in a statement that it has today commenced proceedings in the Federal Court against Webjet Marketing Pty Ltd for "allegedly making false and misleading representations to consumers about flight prices and bookings".

Webjet’s app and website offers travel-related products and services to consumers, including from different airlines. Consumers can compare and book flights, hotels, car rental and travel insurance through the Webjet website and app.

The ACCC alleges Webjet breached the Australian Consumer Law when it made statements on its app, in marketing emails, on social media and on its website about the minimum price of airfares - which omitted compulsory fees charged by Webjet.

The statements included “flights from $x” when the price quoted excluded Webjet’s compulsory ‘Webjet servicing fee’ and ‘booking price guarantee’ fee which ranged from $34.90 to $54.90 per booking, depending on whether the flights were domestic, NZ/Pacific flights or other international flights.

These statements were made for various periods of up to five years between November 2018 to November 2023.

The Webjet fees were not disclosed in Webjet’s social media posts.

Although the Webjet website, Webjet app and most promotional emails contained information about the Webjet fees, it was typically only accessible by scrolling towards the bottom of the relevant screen, was in fine print and not sufficiently clear or prominent.

“We know how much Australian consumers value air travel to stay connected for work, leisure or to visit family," said ACCC Chair Gina Cass-Gottlieb.

"During this time of cost pressures, many consumers are carefully considering travel arrangements and seeking to save money. A statement about the lowest price must be a true minimum price, not a price subject to further fees and charges before a booking can be made.”

Webjet is also alleged to have breached consumer law by displaying a confirmation page online and sending a confirmation email after taking payment for a completed flight booking when in fact, in respect of 382 bookings, it had not booked the flight with the airline.

In these cases, Webjet later allegedly sought additional payment from the consumers to complete the booking, or offered the consumer a refund for the flight, despite having earlier confirmed the booking.

Some consumers may have made and paid for other travel arrangements on the basis of the confirmation so may have had to choose between paying more money or cancelling other arrangements at a potential loss.

It is alleged that Webjet made these misleading representations in respect of 382 bookings over more than five years, between at least November 1, 2018 and June 25, 2024.

“We are very concerned about this alleged conduct by Webjet, which represented to consumers that their flight booking had been confirmed and left some consumers in the position of having to pay more to later complete the booking,” Cass-Gottlieb said.

“The ACCC is currently prioritising consumer and competition issues in the aviation sector as well as conduct in the digital economy.

"We remind all businesses, whether they are online retailers or bricks and mortar stores, that they need to comply with the Australian Consumer Law by not misleading consumers and displaying prices clearly, including hidden fees and surcharges.”

The ACCC is seeking pecuniary penalties, declarations, injunctions, consumer redress, costs and other orders.

ACCC gives go ahead for Accolade to acquire Pernod wine brands

Accolade Wines has been given the green light to buy several wine brands, including Jacob's Creek, from Pernod Richard Winemakers.

The ACCC, Australia's business regulatory body, said today that it will not oppose the proposed acquisition of Pernod Ricard Winemakers by Australian Wine HoldCo Limited, through its subsidiary Accolade.

Accolade’s acquisition relates to Pernod Ricard Winemakers’ BrandCo division, which owns and manages a portfolio of Australian, New Zealand and Spanish wines including Campo Viejo, St Hugo, Church Road, Stoneleigh, and Jacob’s Creek.

Accolade already owns major wine brands including Berri Estates, Grant Burge, Petaluma, Hardy's and St Hallett.

“Based on our investigation, we consider the proposed acquisition is unlikely to substantially lessen competition in wine processing and packaging services, and similarly is unlikely to substantially impact competition in the wholesale supply of wine,” ACCC commissioner Dr Philip Williams said in a statement.

“We considered that if the acquisition went ahead, a number of other businesses will continue to offer competing processing services and also wine,” he said.

Information and feedback gathered during the ACCC’s investigation also indicated that the acquisition is unlikely to substantially lessen competition in the market for the purchase of wine grapes.

“We found that the acquisition would not materially alter competition in grape acquisition markets where Accolade and Pernod Ricard currently overlap,” Williams said.

Concerns relating to whether Accolade, following the acquisition, could disadvantage rival winemakers’ access to processing or packaging services were also examined by the ACCC.

The ACCC concluded that Accolade is unlikely to have the incentive or ability to engage in this conduct, and that even if such conduct occurred it would be unlikely to substantially lessen competition in the wholesale supply of wine.

The ACCC heard from a range of market participants, including grape growers, competing winemakers, wine retailers, and industry bodies during its investigation.

So Qantas did lie to its customers

You probably guessed this all along, but Australian flag carrier Qantas has been lying to its customers for years. 

Qantas has been fined $100 million for misleading customers on flight bookings over several years, with a court hearing senior managers were partly aware of the practice.

The airline admitted that it had contravened the Australian Consumer Law and had benefitted from its immoral conduct.

Expect minimal coverage from mainstream travel media, however, as Qantas is a big-spending advertiser. 

Qantas was ordered by the Federal Court to pay $100 million in penalties for misleading consumers, according to a statement from the ACCC.

Justice Helen Rofe formally ordered Qantas to pay the penalty after the competition watchdog and the airline agreed in May on the cost.

“This is a substantial penalty, which sets a strong signal to all businesses, big or small, that they will face serious consequences if they mislead their customers,” ACCC chair Gina Cass-Gottlieb said.

Qantas admitted to contravening Australian Consumer Law (ACL) after it was found to be offering and selling tickets for flights it planned to cancel - and failing to promptly inform existing ticket holders.

The carrier agreed to make joint submissions with the ACCC to the court, admitting the $100m fine is a sufficient means to deter Qantas and other businesses from breaching the ACL in the future, while also "recognising Qantas' cooperation in resolving the proceedings at an early stage".

The ACCC said "Qantas admitted it breached the ACL by engaging in misleading or deceptive conduct, making false or misleading representations and engaging in conduct liable to mislead the public about more than 82,000 flights scheduled to depart between May 2022 and May 2024".

In addition to the $100m in penalties, Qantas will pay about $20 million to consumers who purchased tickets on flights that the airline had already decided to cancel, or in some cases, who were re-accommodated on those flights after their original flights were cancelled.

Not exactly the Spirit of Australia.  

Qantas to pay up to customers it let down

Qantas will $100 million as a civil penalty for breaking consumer laws and make amends to 86,000 passengers it booked on flights that it cancelled or failed to operate without adequate notice.

These included some so-called “ghost flights” that it did not have any intention of operating.

Under a settlement agreed to with the Australian Competition and Consumer Commission (ACCC), the Australian national carrier will commence a projected $20 million remediation program for impacted passengers.

Affected passeners will receive payments ranging between $225 and $450.

Subject to the approval of the Federal Court of Australia, Qantas has agreed to pay the civil penalty.

Qantas Group CEO Vanessa Hudson said the agreement represented "another important step forward" as Qantas worked towards restoring confidence in the national carrier.

“When flying resumed after the Covid shutdown, we recognise Qantas let down customers and fell short of our own standards," Hudson said.

"We know many of our customers were affected by our failure to provide cancellation notifications in a timely manner and we are sincerely sorry. The return to travelling was already stressful for many and we did not deliver enough support for customers and did not have the technology and systems in place to support our people.

“We have since updated our processes and are investing in new technology across the Qantas Group to ensure this doesn’t happen again.

“We thank the ACCC for their co-operation in reaching this outcome, which means we can compensate affected customers much sooner than if the case had continued in the Federal Court. We are focused on making the remediation process as quick and seamless as possible for customers.”

Consumer organisation CHOICE said reimbursment in situations like this should be automatic. 

“Qantas agreeing to pay $120 million dollars and admitting it misled consumers after ACCC court action is a significant result,” CHOICE said. “The proposed settlement sends a very clear message to all airlines and travel service providers that misleading consumers about cancellations does not fly.

“CHOICE is pleased to see compensation included in the settlement. Over 80,000 consumers have had their travel plans derailed by Qantas’ behaviour over a number of years and these payments are already well overdue. We’ve heard from countless consumers about having to fight tooth and nail to receive refunds or compensation from airlines for delayed or cancelled flights.

“Consumers should not need regulator action to receive compensation when it’s owed.”

Details about how to lodge a claim: www.qantasremediation.deloitte.com.au

Scammers aiming to pull a swifty on Swifties

Planning a trip to Sydney or Melbourne for a Taylor Swift concert?

In addition to being confronted by astronomical hotel prices and absurdly hiked airfares, fans are also being warned to take steps to check that tickets to her upcoming Eras Tour concerts being re-sold on social media are legitimate.

Consumer advocate organisation CHOICE has reported a surge in scam reports.

As the tour dates approach, the Australian Competition and Consumer Commission's (ACCC) Scamwatch say they have received 273 reports of people being scammed buying Swift tickets on social media, with over $135,000 lost so far.

Scammers are using hacked social media accounts to put up posts or send messages to friend lists that include a story about how they can no longer attend the concert and are wanting to sell their tickets at cost price.

These posts are sometimes posted in community groups or among friends and appear to be from a trusted source. After the ticket is paid for, the contact disappears and the ticket never arrives.

ACCC deputy chair Catrina Lowe says they are working with law enforcement to combat the scams, which she is concerned will only increase in frequency as the concerts draw closer.

"We are urging fans to be alert to scammers and think twice before seeking to buy a ticket on social media, even if it's from a friend or community page you trust," Lowe says.

"Be mindful that scammers have been hacking genuine accounts to appear legitimate and are tricking trusting friends or connections into buying Taylor Swift tickets that don't exist."

The ACCC and CHOICE have warned customers against purchasing tickets from re-selling websites that who sometimes mark-up tickets to concerts at illegally inflated prices and have also been susceptible to scam activity.

The ACCC says if you are considering buying re-sold tickets through social media (which they advise against), you should independently contact the friend who is selling the tickets via a different channel and check it is legitimate.

They warn that scammers will often create a sense of urgency, but you should not be rushed or pressured into a quick purchase. Where possible, use platforms like Apple Pay, Google Pay and PayPal rather than paying by bank transfer.

If you do fall victim to a scam, they urge you to contact your bank immediately, report it to Scamwatch, alert the platform you were scammed on and warn your friends and family.

CHOICE campaigns and policy advisor Yelena Nam says digital platforms need to do more to prevent scams and that the government should strengthen their proposed scam reforms to ensure there are new obligations on the companies.

"It's disappointing that well-resourced tech companies continue to fail to detect, prevent and respond to scams exploiting weaknesses in their platforms," she said.

"The government must urgently force digital platforms to comply with strong, mandatory obligations to protect people from harm.

"At a minimum, digital platforms should be required to detect and prevent user accounts from being hacked by scammers and quickly restore affected user accounts to their owners. If these companies had effective measures in place, scammers would have a much harder time targeting victims."

Here is a link to the CHOICE article: https://www.choice.com.au/shopping/everyday-shopping/tickets/articles/taylor-swift-scam-warning