The Australian airline Qantas has agreed to pay a penalty of 100 million Australian dollars, about 61 million euros, and compensate passengers for selling between May 2021 and July 2022 thousands of tickets for more than 8,000 flights that had already been canceled. due to the operational difficulties that the return to normality entailed after covid. The conduct has led to a serious reputational crisis in the company.
The sanction is part of an agreement announced this Monday between Qantas and the Australian Competition and Consumer Commission (ACCC). According to the agency, in 2021 and 2022 Qantas continued to sell tickets for flights that it had already canceled, generally two weeks after doing so but in thousands of cases more than a month later. “Atrocious and unacceptable” behavior that ruined vacations and business trips with “ghost flights.” The airline, in fact, has acknowledged that the practice was extended until August 2023, beyond the period analyzed by the authorities.
The ACCC has also reported that Qantas has committed to paying around €12 million among more than 86,000 customers, who will receive between €140 and €280 each, depending on whether their flights were domestic or international. They are in addition to previous measures such as refunds and reassignment on other flights.
Likewise, the agency has indicated that Qantas did not notify its passengers in advance of the cancellation of some 10,000 scheduled flights in the period analyzed. “We recognize that Qantas disappointed customers and did not live up to our own standards,” Qantas CEO Vanessa Hudson admitted in a statement today, blaming these actions on the problems in resuming operations after the pandemic.
While the investigation was underway, the company was achieving record profits after losses from the pandemic. The scandal cost CEO Alan Joyce his job last year, who opted for early retirement, and more board changes to clean up his image. Joyce’s tenure was known for his focus on shareholders, profits and dividends. Hudson’s first few months have put more emphasis on customers.
