Flight Centre (ASX:FLT) share price dips as WA government plays hardball on borders

Flight Centre's CEO is contemplating legal action against the Western Australian government.

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The Flight Centre Travel Group Ltd (ASX: FLT) share price finished in the red today.

At the same time, the company is being criticised by healthcare professionals angered by Flight Centre's CEO Graham Turner's threat of legal action against the Western Australian government.

At market close, the Flight Centre share price ended the session at $20.64, 1.9% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) fell 0.14% today. The All Ordinaries Index (ASX: XAO) also closed down, dipping 0.24%.

Let's take a look at what Flight Centre's boss is contemplating.

A pensive-looking woman sits on a chair with her chin on her hand looking into space with a large suitcase standing beside her as she contemplates travel to Europe and the Flight Centre share price

Image source: Getty Images

Flight Centre threatens to sue WA

The Flight Centre share price struggled amid the company's push to force Western Australia's borders open.

Last week, Western Australia released its Safe Transition Plan outlining how the state will reopen to the world.

Under the plan, travel into Western Australia will be restricted until 90% of the state's population (aged above 12) are fully vaccinated against COVID-19. That's expected to happen in late January or early February 2022.

The plan has reportedly got Turner seeing red. He told ABC News the company might take the border closure to a judicial review in the Federal Court to test whether it fits with Australia's constitution.

The threat of legal action hasn't gone down well with some Western Australian medical professionals.

President of the Australian Medical Association (WA) Mark Duncan-Smith told the Guardian Australia that opening before the milestone will cause "excessive disease and deaths":

The threats constitute a company that has a focus on profits and not people, and would damage their business reputation in Western Australia immeasurably…

The arrogance that the people who run Flight Centre think they know better than the government, when they have all the modelling, is to me unbelievable.

Yesterday, Health Before Profits WA, a group of activists, healthcare workers, academics, and students, organised a protest in front of a Flight Centre store in response to the legal threat. On its Facebook (NASDAQ: FB) page, the organisation wrote:

[I]f we open our borders at 80% rather than the 90% proposed… hundreds more could die.

The legal challenge is based on [Flight Centre's] desire to maintain their profits.

Whether Flight Centre does call its lawyers to start proceedings against Western Australia is still uncertain. Though, Turner reportedly told ABC News he wouldn't go ahead with the challenge unless he thought he could win.

Flight Centre share price snapshot

The Flight Centre share price has been struggling on the ASX lately.

It has fallen 10% over the last 30 days. However, it has gained 30% since the start of 2021.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Meta Platforms, Inc. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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