Qantas Airways, Australia's largest airline, has agreed to pay a significant penalty of $66.1 million to settle a legal dispute regarding the sale of tickets for flights that were cancelled weeks earlier. Referred to as the 'ghost flights' case, this settlement comes after the Australian Competition and Consumer Commission (ACCC) brought a case against Qantas in August last year.
The ACCC alleged that Qantas sold tickets for flights that had been cancelled weeks in advance, labeling them as "ghost flights." Customers who purchased tickets for these cancelled flights, two or more days in advance, will be eligible for compensation under this settlement.
In addition to the penalty, Qantas will implement a compensation plan worth up to $20 million to reimburse affected passengers. Vanessa Hudson, Qantas' Chief Executive, stated that this settlement is an important step towards restoring confidence in the national carrier.
The ACCC Chairperson, Gina Cass-Gottlieb, criticized Qantas' conduct as "egregious and unacceptable," emphasizing that many consumers made travel plans after booking tickets for flights that were ultimately cancelled.
Under the compensation plan, domestic flight passengers will receive $225, while international ticket holders will receive $450. Hudson acknowledged Qantas' shortcomings during the Covid-19 shutdown and highlighted efforts to improve processes and invest in technology to prevent similar issues in the future.
This settlement marks a significant development in Qantas' efforts to address legal challenges and restore public trust. Vanessa Hudson, who became the first woman to lead Qantas Airlines as CEO, inherited a series of scandals and challenges from her predecessor, Alan Joyce, who navigated the airline through various crises before departing in 2023.
