Qantas, Australia's largest airline, has agreed to pay a significant penalty

 

Qantas, Australia's largest airline, has agreed to pay a significant penalty of A$100m (approximately $66.1m or £52.7m) to settle a legal case brought by the Australian Competition and Consumer Commission (ACCC). The case alleged that Qantas had sold thousands of tickets for flights that had already been cancelled, a practice dubbed "ghost flights."

In addition to the penalty, Qantas will also launch a compensation plan worth up to A$20m to reimburse affected passengers. Under this plan, customers who purchased tickets for flights that had been cancelled for two or more days will be entitled to compensation, receiving A$225 for domestic flights and A$450 for international tickets.

The ACCC launched the case in August, accusing Qantas of misleading customers by selling tickets for flights that had been cancelled weeks in advance. Qantas' Chief Executive, Vanessa Hudson, acknowledged that the airline had let down its customers and stated that restoring confidence in the national carrier was a priority.

Hudson, who was appointed last year, has made efforts to revamp the airline's processes and invest in technology to prevent similar issues in the future. The ACCC Chair, Gina Cass-Gottlieb, welcomed the agreement, stating that Qantas' admissions and agreement to a significant penalty were a positive outcome.

The settlement is a significant step towards addressing the concerns of Qantas' customers, who have faced a series of scandals and legal cases in recent years. The airline's previous CEO, Alan Joyce, led the company through challenging times, including the 2008 financial crisis and the pandemic, but faced growing public anger over issues such as expensive airfares, mass delays and cancellations, and treatment of workers.

The agreement with the ACCC marks a new chapter for Qantas, as the airline seeks to restore its reputation and rebuild trust with its customers. The penalty and compensation plan demonstrate a commitment to accountability and customer satisfaction, and the airline's investment in new processes and technology aims to prevent similar issues in the future.