April 23, 2005

Qantas tightens thumbscrews

Qantas Airways has been accused of misusing its market power by threatening to withhold air ticket sales commissions from travel agents unless they meet targets for selling holiday packages from its Qantas Holidays unit.

Most travel agents say they are in the middle of reaching new agreements with Qantas, which dominates Australia�s air and holiday package tourism sector and will not comment publicly.

But some, speaking on condition of anonymity, said the deals Qantas is trying to strike were a way for the airline to turn around Qantas Holidays, which is performing well in international sales but not as well domestically.

I wonder how much longer Qantas will have such tight control over the Australian air market? Unfortunately, no one else can stick around long enough to make them 'hurt' bad enough to give up some of the strong arm tactics.

Posted by Court | #
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