Qantas, Australia’s national airline, has agreed to pay $79 million to settle a lawsuit with the country’s consumer watchdog over selling tickets to flights that were already canceled. The Australian Competition and Consumer Commission accused Qantas of advertising and selling tickets for over 8,000 canceled flights from May 2021 to July 2022.
The commission alleged that Qantas knew the flights would never take off, yet tickets remained available for an average of over two weeks after the cancellations, with some tickets still on sale for as long as 47 days. As part of the settlement, Qantas will pay 20 million Australian dollars in compensation to more than 86,000 customers and a fine of 100 million dollars, pending court approval.
Qantas CEO Vanessa Hudson issued a public apology, acknowledging the airline’s failure to provide timely cancellation notifications and stating that they have since updated their processes and invested in new technology to prevent similar incidents in the future.
Consumer watchdog chairwoman Gina Cass-Gottlieb expressed satisfaction with the outcome, stating that Qantas had misled its customers and that a significant penalty was necessary as a result of their conduct. This settlement comes at a challenging time for Qantas, as the airline has faced criticism for unreliable flights, high ticket prices, and controversial executive pay practices in recent years.
In a statement, Ms. Hudson emphasized that resolving the lawsuit was a crucial step in rebuilding trust in the national carrier. The agreement with the consumer watchdog marks a significant development for Qantas as it seeks to address past issues and move forward in restoring confidence among its customers.
