Sydney, Australia: Australian airline Qantas has agreed to pay a substantial $66 million fine on Monday following a controversy surrounding “ghost flights.” This situation arose from accusations that the airline continued to sell seats on flights that had long been cancelled.
According to the country’s competition watchdog, Qantas confessed to misleading consumers by advertising seats on tens of thousands of flights despite knowing they were cancelled. As part of the settlement, Qantas will also compensate 86,000 affected travelers with $13 million.
Gina Cass-Gottlieb, chairperson of the Australian Competition and Consumer Commission, criticized Qantas, stating, “Qantas’ conduct was egregious and unacceptable.” She highlighted the impact on consumers who made plans for holiday, business, and travel based on bookings for flights that didn’t exist.
Qantas CEO Vanessa Hudson expressed regret, acknowledging that the airline had failed to meet its own standards and apologizing for the inconvenience caused to customers. She mentioned instances where customers were booked on flights cancelled days prior.
The $66 million fine, which amounts to approximately Aus$100 million, is pending court approval. Qantas, known as the “Spirit of Australia,” has been striving to rebuild its reputation, having faced criticism for high ticket prices, service issues, and significant layoffs during the Covid-19 pandemic.
The airline defended its practice of selling seats on cancelled flights, arguing that customers purchase a bundle of rights rather than specific seats, with the assurance that the airline will endeavor to accommodate them promptly.
Despite challenges, Qantas reported a profit of $1.1 billion last year, signaling a financial recovery following the turbulence of the Covid-19 pandemic. Alan Joyce, the long-serving CEO, announced his early retirement amidst ongoing criticism in September of the previous year.
Read More:
