Qantas, Australia’s flagship airline, has recently agreed to a significant settlement following a lawsuit brought forth by the country’s consumer watchdog. The airline has pledged to pay a hefty fine of $79 million for the sale of thousands of tickets to flights that it had already canceled.
In a statement released on Monday, Qantas confirmed that the settlement, amounting to 120 million Australian dollars, would put an end to the legal dispute initiated by the Australian Competition and Consumer Commission. The commission had accused the airline of misleading advertising and selling tickets for over 8,000 flights that were ultimately canceled between May 2021 and July 2022.
According to the commission, Qantas was aware that these flights would not proceed, yet tickets remained on sale for an average of more than two weeks after their cancellation, with some available for up to 47 days.
As part of the settlement, Qantas anticipates paying out 20 million Australian dollars in compensation to over 86,000 affected customers, alongside a fine of 100 million dollars pending court approval.
Qantas’ CEO, Vanessa Hudson, expressed regret over the situation, acknowledging the inconvenience caused to customers and affirming the implementation of improved processes and technology to prevent such occurrences in the future.
Gina Cass-Gottlieb, chairwoman of the consumer watchdog, welcomed the settlement, highlighting Qantas’ acknowledgment of misleading its customers and the necessity of a substantial penalty.
The airline has faced criticism in recent years for various issues, including flight reliability, ticket pricing, and controversies surrounding executive compensation and layoffs. Nonetheless, Qantas remains committed to restoring confidence in its services, with Ms. Hudson emphasizing the settlement as a positive step forward.
