Sydney, Australia – Qantas, Australia’s largest airline, has reached a settlement with the Australian Competition and Consumer Commission (ACCC) in a legal case where they were accused of selling tickets for flights that had been cancelled. This settlement includes a A$100 million penalty, along with a plan worth up to A$20 million to compensate affected passengers.
The case, known as the “ghost flight” scandal, alleged that Qantas had sold tickets for flights that were already cancelled, some for weeks in advance. The agreement between Qantas and the ACCC is now pending approval from the Federal Court of Australia.
As part of the compensation plan, customers who purchased tickets for flights cancelled for two or more days will be entitled to refunds. Domestic flight passengers will receive A$225 while international ticket holders will get A$450. This settlement marks a significant step in restoring trust in the national carrier, according to Qantas’ Chief Executive Vanessa Hudson.
Hudson acknowledged the airline’s failure to meet customer expectations after flights resumed post-Covid shutdowns. She emphasized the company’s commitment to rectifying the situation and preventing similar issues in the future through process improvements and technological investments.
“We are glad to have obtained Qantas’ acknowledgment of misleading its customers and their agreement to a substantial penalty,” said ACCC Chair Gina Cass-Gottlieb. The airline faced a series of challenges and legal issues prior to Hudson becoming the first female to lead Qantas, with her predecessor navigating through financial crises, the pandemic, and other obstacles.
Qantas has taken steps to address public concerns over high airfares, flight delays, cancellations, and employee relations. The settlement and compensation plan aim to appease affected passengers and rebuild the airline’s reputation under new leadership.