Qantas has announced that it has reached an agreement with the Australian Competition and Consumer Commission (ACCC) that will cost the company up to $120 million.
Last year the ACCC took action against Qantas for what have been dubbed “ghost” flights.
The ACCC alleged that Qantas knowingly sold tickets to customers for flights that the airline had already decided would be cancelled. It alleged that the airline received payments for services it had no intention of providing.
This occurred as the airline was dealing with the post-COVID boom in travel, until August 2023.
Qantas says all affected customers have been offered refunds or alternate flights.
The settlement today has not yet been approved by the Federal Court. However Qantas says it’ll start rolling the $20 million customer compensation program out shortly, in advance of Court approval.
In addition, the airline will pay a $100 million civil penalty for the failure. It has agreed to not engage in this conduct again.
“Qantas’ conduct was egregious and unacceptable. Many consumers will have made holiday, business and travel plans after booking on a phantom flight that had been cancelled,” ACCC Chair Gina Cass-Gottlieb said.
Am I eligible for a compensation payment?
As part of the settlement, Qantas will pay approximately $20 million to more than 86,000 customers.
To be eligible, you must have:
Booked, or were re‑accommodated on, a Qantas domestic or international flight scheduled to depart between 1 May 2022 until 10 May 2024
Have your booked flight canceled by Qantas a minimum of two days prior to your ticket purchase
If eligible, you’ll receive $225 for domestic or trans-Tasman flights and $450 for all other international flights.
Qantas has partnered with Deloitte to setup an online portal for reimbursements. This will be available next month. You can sign up to find out more information at a new Qantas remediation portal.
You should remain vigilant for scams, with both the ACCC and Qantas warning of a potential increase in scammers targeting the compensation scheme.
Airline performance improves
Today’s settlement comes as continued scrutiny is placed on airline cancellations. Monthly figures are now released for major Australian airlines, highlighting cancellation rates, arrival times and delayed departures.
In recent months, Jetstar has continued to improve on its departure timeliness.