Flight Centre Travel Group may still seek to appeal penalty in ACCC case against it

Flight Centre Travel Group (FTL) released (04-Apr-2018) a statement to Australian Securities Exchange on the Australian Competition and Consumer Commission (ACCC) "law test case" against the company, following the release of updated penalty details increasing these from AUD11 million (USD8.5 million) to AUD12.5 million (USD9.7 million). The case was initiated by the ACCC in 2012 and has been argued in three courts, with FLT losing the initial judgment, winning on appeal and then losing a subsequent appeal by the ACCC to the High Court. FLT MD Graham Turner said the company was currently examining the judgment and would consider whether there were grounds for seeking leave to appeal against the latest penalty judgment. Mr Turner said Flight Centre believed at all times that it was acting lawfully and that its conduct did not contravene the Trade Practices Act, given that its interactions took place within the context of commercial negotiations as to agency arrangements with its principals. FTL stated the penalty will not affect its market guidance for FY18 of an underlying profit before tax of between USD360 million (USD278 million) and AUD385 million (USD297 million). The penalty will, however, be included in FLT's statutory results for the year. [more - original PR]