A High Court ruling which will see Qantas pay millions to travel agents on unpaid fuel surcharge commissions will have far reaching implications as other airlines face the chopping block.

In May, the Federal Court ruled that Qantas owed millions of dollars to travel agents when it failed to pay commission on fuel surcharges however Qantas applied to appeal the ruling in High Court, but was last week denied this path.

“[Last week’s decision] reaffirmed the Federal Court ruling,” Slater & Gordon lawyer Steven Lewis told e-Travel Blackboard, adding that the carrier was found to have broken the terms of its International Air Transport Authority contract with travel agents.

The case is now set to return to the Federal Court to determine the ins and outs of who gets what and how.

“This was a very important judgement and has ramifications for the remainder of international airlines flying to Australia and all airlines [globally] who do not pay commission on fuel surcharges,” Mr Slater said.

“The results mean that all other international airlines have the potential to pay.”

Mr Lewis said the decision had put “all major stumbling blocks put to one side” such that the other airlines named in the case were in the same boat as Qantas.
 
"Six airlines were named in the class action: Qantas Airways, Air New Zealand, British Airways, Cathay Pacific, Singapore Airlines and Malaysian Airlines – although we are not seeking money from Malaysian Airlines,” Mr Slater advised.

“We were running the Qantas case as a test case.”

Mr Lewis hopes to see the case finalised this year, though accedes that this might be wishful thinking as the airlines have dragged the case on since 2004.

A Qantas spokesperson told e-Travel Blackboard that, “We are disappointed with the decision and now need to time to consider our options”.
 
“Travel agents remain a key part of our distribution network and we will continue to work closely with the industry.”