Australian Airline Qantas to Pay $66.1m Penalty in “Ghost Flight” Case
In a major development, Australia’s largest airline Qantas has agreed to pay a hefty A$100m penalty to settle a legal case accusing it of selling tickets for flights that had already been canceled. The Australian Competition and Consumer Commission (ACCC) played a key role in reaching this settlement, which also includes a compensation plan of up to A$20m for affected passengers.
Vanessa Hudson, Qantas’ Chief Executive, hailed the agreement as a crucial step in rebuilding trust in the national carrier. The “ghost flight” case, initiated by the ACCC in August, alleged that Qantas had sold tickets for flights that had been grounded for weeks, leading to widespread customer dissatisfaction.
Under the terms of the settlement, customers who purchased tickets for flights canceled two or more days in advance will be eligible for compensation. Domestic flight passengers will receive A$225, while international ticket holders will get A$450.
Ms. Hudson acknowledged the airline’s past missteps, particularly during the Covid shutdown period, and emphasized the company’s commitment to improving customer service. She highlighted the implementation of new processes and technology to prevent similar issues from occurring in the future.
“We are pleased with Qantas’ acknowledgment of misleading its customers and the agreement to a substantial penalty,” stated ACCC Chair Gina Cass-Gottlieb. The penalty arrangement is subject to approval by the Federal Court of Australia.
Qantas faced a series of challenges and legal battles prior to Ms. Hudson taking over as the first female CEO. Her predecessor, Alan Joyce, navigated the airline through various crises, including the 2008 financial downturn, the pandemic, and soaring fuel prices. However, by 2023, Qantas was grappling with public discontent over high airfares, widespread flight disruptions, and labor issues.
As the airline works towards restoring its reputation under new leadership, the A$100m penalty settlement marks a significant milestone in addressing past grievances and rebuilding customer trust. – BBC
