Australia’s largest airline, Qantas, has agreed to pay a penalty of 100 million Australian dollars ($66.1 million, £52.7 million) to settle a case in which it was accused of selling thousands of tickets for cancelled flights. Under the agreement, the company will also initiate a plan to compensate affected passengers, with amounts totaling up to 20 million Australian dollars.
Vanessa Hudson, Chairperson of Qantas’ Board of Directors, stated that this move is a significant step towards “restoring confidence in the national airline.”
The case, initiated by the ACCC in August and dubbed as “phantom flights,” alleged that Qantas sold tickets for flights that were cancelled for weeks in some instances.
The penalty agreement will now need approval from the Australian Federal Court. Under the plan, customers who purchased tickets for flights cancelled for two or more days will be entitled to compensation. They will receive 225 A$ for domestic flights and 450 A$ for international flights.
Ms. Hudson emphasized that restoring the airline’s reputation is a top priority and stated that the company has revamped its processes and invested in technology to prevent such issues from recurring.
ACCC Chairperson, Gina Cass-Gottlieb, expressed satisfaction with Qantas acknowledging misleading customers and agreeing that a significant penalty was necessary.
Ms. Hudson took over as the first female head of Qantas amidst a series of scandals and legal challenges. Her predecessor, Alan Joyce, led the company through the 2008 financial crisis, the pandemic, and record fuel prices. However, when Joyce stepped down in 2023, Qantas faced increased public anger due to high airfares, mass delays and cancellations, and treatment of workers.
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