Qantas will payout $20M to more than 86,000 customers who were sold tickets on flights that it had already planned to cancel
Qantas has agreed in a court-enforceable undertaking to pay about $20 million to more than 86,000 customers who were sold tickets on flights that Qantas had already decided to cancel, or in some cases who were reaccommodated on these flights after their original flights were cancelled.
Qantas will pay $225 to domestic ticketholders and $450 to international ticketholders. These payments are on top of any remedies these consumers already received from Qantas, such as alternative flights or refunds.
The Australian Competition & Consumer Commission, (ACCC) launched Federal Court action against Qantas in August 2023 alleging that, between 21 May 2021 and 7 July 2022, Qantas advertised tickets for more than 8,000 cancelled flights. It was also alleged that, for more than 10,000 flights scheduled to depart in May to July 2022, Qantas did not promptly notify existing ticketholders that their flights had been cancelled.
Qantas has now admitted that its misconduct continued from 21 May 2021 until 26 August 2023, affecting tens of thousands of flights scheduled to depart between 1 May 2022 and 10 May 2024.
“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. We acknowledge Qantas’ cooperation in ultimately deciding not to contest this case, admitting that the conduct occurred for a longer period, and seeking to resolve this early and for the benefit of consumers,” ACCC Chair, Ms. Gina Cass-Gottlieb said.
As part of an agreement announced today, the ACCC and Qantas will ask the Federal Court to impose a penalty of $100 million on Qantas for breaching the Australian Consumer Law.
Remedies offered to be more honest with their customers
Qantas has also undertaken to notify customers of cancelled flights as soon as practicable, and no more than 48 hours from deciding to cancel the flight. It has also undertaken to stop selling cancelled flights as soon as practicable, and in any event within 24 hours of its decision to cancel. The undertaking also applies to its low-cost subsidiary, Jetstar. Qantas will also review its consumer compliance program and appoint independent auditors who will monitor Qantas’ compliance with the undertaking and provide reports to the Qantas board and the ACCC.
“We note that Qantas has also agreed not to repeat this type of conduct in the future, and to make payments as soon as possible to the thousands of consumers who purchased tickets on flights that Qantas had already decided to cancel, or were re-accommodated onto these flights after their original flight was cancelled.” Ms Cass-Gottlieb added
Qantas will also review its consumer compliance program and appoint independent auditors who will monitor Qantas’ compliance with the undertaking and provide reports to the Qantas board and the ACCC.
Customer Payments
Consumers will receive communications from Qantas and Deloitte Australia, which is administering the payments on behalf of Qantas, via email and text message, providing information on accessing a portal to facilitate the payment.
Consumers should be aware of scammers pretending to make contact on behalf of Qantas or Deloitte. Consumers should only provide their personal information through the official claims portal, and not to anyone else.