image source, Getty Images
- author, joao da silva
- role, business reporter
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Qantas, Australia’s largest airline, will pay A$100 million ($66.1 million, £52.7 million) in penalties to settle a lawsuit in which it was accused of selling thousands of tickets for flights it had already canceled. agreed.
Under an agreement with the Australian Competition and Consumer Commission (ACCC), the company will also launch a scheme worth up to A$20 million to compensate affected passengers.
Qantas chief executive Vanessa Hudson said the move was an important step towards “restoring confidence in the national airline”.
The ACCC’s so-called “ghost flight” case in August alleged that in some cases Qantas was selling tickets for flights that had been canceled for several weeks.
The penalty agreement between Qantas and the ACCC will now need to be approved by the Federal Court of Australia.
The plan will provide compensation to customers who have purchased tickets that have already been canceled for two or more days.
The airline says domestic tickets will receive A$225 and international tickets will receive A$450.
“We recognize that Qantas let our customers down when flights resumed following the coronavirus shutdown,” said Mr Hudson, who was appointed to the role last year to restore the airline’s reputation. He said that he had made it his top priority.
He also said the company has revamped its processes and invested in technology to avoid the problem happening again.
ACCC Chair Gina Cass Gottlieb said: “We are pleased that Qantas has acknowledged that it has misled its customers and has secured an agreement that requires a very significant penalty.”
When Hudson became the company’s first female president, Qantas was facing a series of scandals and lawsuits.
Her predecessor, Alan Joyce, led the company through the 2008 financial crisis, the pandemic and record fuel prices.
But by the time Mr Joyce resigned in 2023, Qantas was facing high airfares, a slew of delays and cancellations, and growing public anger over the treatment of its employees.
