Qantas Airways has come under scrutiny for misleading customers regarding cancelled flights. In a recent development, the airline has agreed to significant payouts following legal actions.
The Australian Competition and Consumer Commission (ACCC) played a central role in addressing these consumer protection issues by reaching a settlement with Qantas.
Under the terms of the settlement with the ACCC, Qantas has agreed to pay a A$100 million penalty. This amount addresses the misleading advertising of flights that the airline had already decided to cancel.
Additionally, Qantas will provide A$20 million in compensation to more than 86,000 affected travellers, with individual payouts ranging from A$225 to A$450.
The ACCC’s case against Qantas was a response to the airline’s conduct regarding its flight cancellation practices. Flights advertised and sold, but already deemed as ‘phantom’ due to prior cancelation decisions, breached consumer law.
Investigations revealed Qantas failed to notify customers in a timely manner when they cancelled numerous flights, exacerbating the problem for unwary consumers. This breach extended to the end of August 2023.
ACCC Chair, Gina Cass-Gottlieb, stated that securing admissions from Qantas highlighted the seriousness of this breach. The pledged penalty underscores a commitment to uphold consumer law stringently.
Cass-Gottlieb’s comments reflected an ongoing determination by authorities to prevent such scenarios from recurring in the aviation sector.
“Qantas’ conduct was egregious and unacceptable,” Cass-Gottlieb asserted, emphasising the impact on consumer trust.
Vanessa Hudson, CEO of Qantas Group, acknowledged the shortcomings in communication during the post-COVID flight resumption phase. She expressed regret over the lack of timely notification for cancellations.
Qantas is actively updating its processes and investing in new technology aimed at preventing future occurrences. These efforts reflect the airline’s commitment to restoring faith in their services.
Many passengers affected by these phantom flights faced disruption to travel plans, often made after extensive arrangements. The payments are intended as compensation and acknowledgment of the inconvenience caused.
The ACCC’s intervention provides a corrective measure for these passengers, aiming to restore some confidence in the affected consumers.
Qantas has embarked on upgrading its technological infrastructure to better support decision-making and communication. This strategic move includes integrating advanced systems to streamline operations.
The airline hopes these changes will enhance customer experience and bolster the overall efficiency of their flight management.
With the settlement reached, Qantas aims to expedite the compensation process, ensuring affected customers receive payments promptly.
This resolution allows both Qantas and the ACCC to close the chapter on this legal dispute and focus on improved consumer relations moving forward.
Qantas’ agreement to substantial penalties and compensation is a pivotal moment in its business practices. It underscores the importance of legal compliance and consumer trust.
The airline’s commitment to change, reflected in technological improvements and public apologies, aims to reassure travellers of a more reliable service in future.
