Qantas has reached a significant settlement agreement with the ACCC, agreeing to pay a total of $120 million to address allegations of selling tickets for flights that were already cancelled. This deal includes a $100 million civil penalty, marking the largest settlement for a breach of consumer law in ACCC history.
The airline has admitted to misleading consumers and has vowed to refrain from such conduct in the future. As part of the agreement, Qantas will compensate over 86,000 customers who were affected by the phantom flight bookings. These customers will receive payments ranging from $225 to $450.
Furthermore, Qantas has committed to notifying customers promptly about cancelled flights and ceasing the sale of flights that have been cancelled. The financial impact of the penalty and compensation program will be reflected in the group’s income statement over the current financial years.
This landmark settlement emphasizes the importance of transparency and consumer protection in the airline industry, as Qantas takes steps to restore confidence and ensure such incidents do not reoccur in the future.