Leonie’s Travel Pty Ltd v Qantas Airways Limited [2010] FCAFC 37

FEDERAL COURT OF AUSTRALIA

Leonie's Travel Pty Ltd v Qantas Airways Limited [2010] FCAFC 37

Citation: Leonie's Travel Pty Ltd v Qantas Airways Limited [2010] FCAFC 37

Appeal from: Leonie's Travel Pty Ltd v International Air Transport Association [2009] FCA 280 Leonie's Travel Pty Ltd v International Air Transport Association (No 2) [2009] FCA 646

Parties: LEONIE'S TRAVEL PTY LTD (ACN 050 214 152) v QANTAS AIRWAYS LIMITED (ACN 009 661 901)

File number: NSD 601 of 2009

Judges: LANDER, RARES AND BESANKO JJ

Date of judgment: 4 May 2010

Catchwords: CONTRACTS – whether Qantas was entitled to unilaterally determine that no commission would be payable on the part of the cost of a ticket which relates to the fuel surcharge – interpretation of Agency Agreement between Airlines and Agents and rules and resolutions issued by the International Air Transport Association (IATA) – under IATA rules Airlines had the right to change the rate of commission and the Agents had the right to receive the commission – Qantas was not entitled under the Agency Agreement to unilaterally alter the rights and obligations of Airlines and Agents under the IATA rules – if commission is to be paid the IATA rules provides for the sum upon which the commission is to be calculated – the sum upon which the commission is to be calculated is the "fares applicable" – definition of "fares applicable" is determined by the IATA rules – "fares applicable" is the cost of the fare to the passenger with the exception of the cost for excess baggage or excess valuation of baggage or for taxes and other charges – no inconsistency between Agency Agreement and IATA rules