A federal court has approved a A$100m ($67.3m) fine against Qantas for the sale of tickets for cancelled flights and a failure to quickly inform customers about cancellations after an investigation by the Australian Competition and Consumer Commission (ACCC).
The significant penalty was delivered after Qantas admitted to breaking Australian Consumer Law through its actions and agreed on the fine as a way to deter future breaches while “recognising Qantas’ cooperations in resolving the proceedings at an early stage.”
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ACCC Chair Gina Cass-Gottlieb said the fine would send a “strong signal” to all businesses about the consequences of breaking consumer law, she said: “Up to about 880,000 consumers were affected by Qantas’ conduct.
“People had made plans, and may have spent money on other related purchases, relying on the fact that the flight would depart as advertised. And the delay in notifying them of the cancellation may have made it more stressful and costly to make alternative arrangements.”
Qantas will pay the A$100m in penalties in addition to the A$20m it has also agreed to pay to the customers affected by its actions around the cancelled flights between 21 May 2021 and 26 August 2023.
The ACCC said most customers affected by the payout will have been contacted by Qantas by 10 July 2024 but any who believe they are also entitled to compensation can submit a claim through the commission until 6 May 2025.
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By GlobalDataThe federal court’s approval of the fine is the latest in a string of difficulties to hit Qantas in the last two years, including another court ruling that the airline had illegally outsourced ground handling jobs during the Covid-19 pandemic.
A recent report on the responsibility of executives at the company for its failings also saw former CEO Alan Joyce’s remuneration pay cut in light of findings that mistakes made by him and other management figures “contributed to the Group’s significant reputational” issues.
