Qantas Airways has agreed to settle a lawsuit with Australia’s consumer watchdog, the Australian Competition and Consumer Commission (ACCC), over the sale of tickets for flights that were already cancelled. The airline giant will pay a hefty penalty of A$120 million ($79 million) to put an end to the legal dispute, aiming to salvage its tarnished reputation, as reported by Reuters.
As part of the settlement, Qantas will allocate A$20 million to compensate over 86,000 affected customers who booked tickets for these “ghost flights.” Additionally, the company will pay a fine of A$100 million, foregoing its previous stance of contesting the lawsuit. CEO Vanessa Hudson expressed regret, acknowledging the airline’s failure to meet customer expectations and emphasizing the swift compensation process enabled by the settlement.
Once approved by the court, this agreement will mark a resolution to a contentious issue that has significantly impacted Qantas’s brand perception and led to a surge in customer complaints. The substantial penalty underscores the seriousness of the matter, with ACCC Chair Gina Cass-Gottlieb stressing its deterrent effect on other businesses.
While the penalty represents a significant sum, it pales in comparison to Qantas’s projected net profit for the fiscal year. Affected customers will receive compensation ranging from A$225 to A$450, in addition to refunds for their tickets.
