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Ansett Magazine Censors Webjet's Cheaper Fare Offer

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7th February 2001

Internet travel group Webjet is already encountering opposition to its plan to make
airfare structures more transparent.

Ansett 's in-flight magazine, Panorama, has advised Webjet it will not run an advertisement for the new fares which offer prices below those of high street agents. Webjet has referred the refusal to the ACCC.

The advertisement outlines Webjet's new strategy of offering fare prices based on the service requirements of the customer.

The lowest fares, available to those willing to do the bookings themselves on the internet, are offered at prices previously available only to bulk buyers. Three other options, ranging up to full " VIP personal service from an experienced travel consultant, are offered with clearly indicated service premiums. Webjet believes all options are cheaper than fares offered for comparable service elsewhere.

Webjet Managing Director David Clarke said that Pol, publishers of the Ansett in-flight magazine, had originally accepted the booking, but had later advised him that it was unacceptable to Ansett. Ansett has advised Webjet that the refusal is for "commercial reasons".

Mr Clarke said he was mystified by the decision as Webjet booked a considerable number of fares with Ansett and would be offering Ansett fares under the new schedule.

Qantas, whose fares Webjet also books, has not indicated any problem with the advertisement.

Mr Clarke said that Andrew Miller, General Manager of Ansett Domestic, had faxed a letter saying that Pol's advertising contract states that advertisements are published subject to the approval of both Pol and Ansett and that Ansett did not believe their refusal to publish contravened the Trade Practices Act.

However, beyond saying that the refusal is for commercial reasons it did not detail Ansett's objections and we can only wait and see what further explanation is provided.

"Meanwhile we have raised the matter with the ACCC."

Webjet's ASX code is WEB

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