Qantas agrees to pay $79 million in compensation and a fine for selling seats on canceled flights

 

Qantas Airways agreed to pay 120 million Australian dollars ($79 million) in compensation and a fine for selling tickets on thousands of cancelled flights, the airline and Australia’s consumer watchdog said on Monday.

The Australian Competition and Consumer Commission sued the Sydney-based airline in the Federal Court last year. The commission alleged that Qantas engaged in false, misleading or deceptive conduct by advertising tickets for more than 8,000 flights from May 2021 through to July 2022 that had already been canceled.

Qantas agreed to settle the suit by paying a AU$100 million ($66 million) fine to the Australian government and a projected AU$20 million ($13 million) to more than 86,000 affected customers.

“Today represents another important step forward as we work towards restoring confidence in the national carrier,” Qantas chief executive Vanessa Hudson said in a statement.

A Federal Court judge has yet to accept the settlement.

ACCC chair Gina Cass-Gottlieb said Qantas’ payments of AU$225 ($149) to domestic ticket holders and AU$450 ($298) for international bookings were in addition to other remedies already provided by Qantas, including alternative flights and refunds.

“We are pleased to have secured these admissions by Qantas that it misled its customers, and its agreement that a very significant penalty is required as a result of this conduct,” Cass-Gottlieb said in a statement.

“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,” she added.

Source : https://apnews.com/article/australia-qantas-fine-compensation-canceled-flights-8766c29bdf6714175ccfa8563f590878

Comprehension

How much money did Qantas Airways agree to pay in compensation and fines?
Why did the Australian Competition and Consumer Commission sue Qantas Airways?
What was the accusation against Qantas by the commission?
How many affected customers are expected to receive compensation from Qantas?
What did Qantas CEO Vanessa Hudson say about the settlement?
Has the settlement been officially accepted by the Federal Court judge?
What additional remedies did Qantas provide to affected customers besides compensation?
How did the ACCC chair describe Qantas' conduct in this situation?

Discussion

How important is it for companies to be honest and transparent with their customers?
Have you ever experienced a situation where a company misled you? How did it make you feel?
What steps can companies take to regain trust after a situation like the one Qantas faced?
Do you think the fine imposed on Qantas was fair? Why or why not?
How can consumers protect themselves from falling victim to misleading advertising?
In what ways can companies ensure they provide accurate information to their customers?
How do you think this incident will impact Qantas' reputation in the future?
What responsibilities do you think companies have towards their customers when mistakes like this happen?

Vocabulary

Compensation - payment or something given to make up for a loss or injury
Fine - a sum of money to be paid as a penalty for an offense
Deceptive - misleading or giving a wrong impression
Settlement - an official agreement intended to resolve a dispute or conflict
Admissions - statements acknowledging the truth of something
Egregious - outstandingly bad; shocking
Phantom - something that is not real or true, only seeming to be
Misled - to lead or guide wrongly; to give a wrong impression