SYDNEY: Australian airline Qantas agreed to pay a US$66 million fantastic on Monday (Could 6) after a bruising “ghost flights” scandal, following accusations it saved promoting seats on long-cancelled journeys.
The nation’s competitors watchdog stated Qantas “admitted that it misled customers” by promoting seats on tens of hundreds of flights, regardless of these flights being cancelled.
Qantas may even fork out US$13 million in compensation to 86,000 travellers impacted by the cancellations and botched rescheduling.
“Qantas’ conduct was egregious and unacceptable,” stated Australian Competitors and Client Fee chairperson Gina Cass-Gottlieb.
“Many customers could have made vacation, enterprise and journey plans after reserving on a phantom flight that had been cancelled.”
Qantas stated that, in some instances, clients have been booked on flights that had been cancelled “two or extra” days prior.
Qantas chief govt Vanessa Hudson stated the airline “let down clients and fell wanting our personal requirements”.
“We all know lots of our clients have been affected by our failure to offer cancellation notifications in a well timed method and we’re sincerely sorry,” she stated in a press release.
The US$66 million fantastic is topic to court docket approval.
Lengthy-dubbed the “Spirit of Australia”, 103-year-old nationwide service Qantas has been on a mission to restore its fame.
It has confronted a shopper backlash stirred up by hovering ticket costs, claims of sloppy service and the sacking of 1,700 floor workers in the course of the COVID-19 pandemic.
Qantas has beforehand defended promoting seats on cancelled flights.
It argued that moderately than shopping for tickets for particular seats, clients purchase a “bundle of rights” and a promise the airline will “do its greatest to get customers the place they wish to be on time”.
Qantas posted an annual revenue of US$1.1 billion final 12 months, capping a serious monetary rebound after the journey turbulence of the Covid years.
Veteran chief govt Alan Joyce introduced his early retirement amid a barrage of criticism in September final 12 months.
