Qantas said 94 per cent of the passengers impacted were flying on domestic or trans-Tasman routes, with the remaining 6 per cent flying internationally. It also said more than 80 per cent of passengers on the domestic routes were offered an alternative flight departing before or within three hours of their scheduled departure time. It also said more than 60 per cent of the international passengers were offered an alternative flight which departed before or within 12 hours of the originally scheduled flight.
The ACCC chair Gina Cass Gotlieb said the admission that Qantas misled its customers is an important milestone in enforcing the Australian Consumer Law.
“Qantas’ conduct was egregious and unacceptable. Many customers will have made holiday, business and travel plans after booking on a phantom flight that had been cancelled. We expect that this penalty, if accepted by the Court, will send a strong deterrence message to other companies,” Cass-Gotlieb said.
The ACCC said Qantas also admitted its misconduct continued from May 2021 until August 2023 on flights scheduled to depart up until May 10 this year.
The watchdog’s allegations were one of a string of scandals which decimated Qantas’ ASX listed share price at the end of last year and led to the early exit of Qantas’ then-chief-executive, Alan Joyce, who announced he would retire two months ahead of schedule days after the case was launched.
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The airline agreed to pay $225 to domestic ticket holders and $450 to international ticket holders. The payments will be in addition to any remedies the consumers have already received from the airline, including alternative flights or refunds.
The ACCC and Qantas will now jointly ask the Federal Court to approve the settlement deal and penalties.
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Source Agencies
