Qantas Airways, one of Australia’s leading airlines, has reached a settlement in a lawsuit over the sale of tickets for flights that were subsequently canceled. The airline has agreed to pay a total of 120 million Australian dollars, with 20 million going towards compensating more than 86,000 customers who booked tickets on the so-called “ghost flights”.
This settlement, which still needs to be approved by the court, is the largest fine ever imposed on an Australian airline and is among the biggest globally in the aviation sector. Qantas CEO Vanessa Hudson publicly acknowledged that the company had failed its customers and did not meet its own standards.
The Australian Competition and Consumer Commission (ACCC) Chair Gina Cass-Gottlieb emphasized that the penalty sends a strong message to other companies about the consequences of misleading consumers. As part of the settlement, affected passengers who purchased tickets for non-existent domestic flights will receive $225, while those with international fares will receive $450, in addition to a refund.
The ACCC’s lawsuit focused on the period following Australia’s border reopening in 2022, when Qantas faced staffing shortages and a surge in cancellations and complaints. Qantas argued that it encountered challenges similar to airlines around the world, but the ACCC found that the airline’s actions violated consumer protection laws.
In addition to the financial compensation, the settlement includes a commitment from Qantas to refrain from repeating the conduct in the future. This resolution aims to restore customer trust and repair the damage done to Qantas’s reputation in consumer surveys.
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