Qantas Airways Limited - s.87B undertaking

Qantas Airways Limited (ACN 009 661 901) and its Subsidiaries operate passenger air transport services throughout Australia and internationally.

The Commission has expressed concerns regarding the manner in which airlines advertise airfares with respect to the disclosure of charges, levies and taxes, namely, that in certain circumstances the advertising of airfares may contravene sections 52, 53(e) and 53C of the Act. These circumstances include where the advertising of airfares may not have adequately disclosed the fact that further charges, levies and taxes were payable in addition to the advertised fare or not disclosed the total price of the fare payable by the consumer.

In view of the Commission's concerns, Qantas has provided certain undertakings to the Commission as part of an industry-wide change intended to minimise any possible risk of confusion to consumers.

To assist in establishing new industry-wide standards for the advertising of airfares, Qantas has undertaken to the Commission that:

• (a) in respect of advertisements committed to after 13 May 2002 and published in Australia from 10 June 2002, Qantas will only advertise or represent the price of fares for domestic air travel on an All Inclusive Basis;
• (b) in respect of advertisements committed to after 15 June 2002 and published in Australia from 30 June 2002, Qantas will only advertise or represent the price of fares for international air travel on an All Inclusive Basis; and
• (c) Qantas will procure that its Subsidiaries comply with these undertakings as though those undertakings had been given by its Subsidiaries themselves.