Australian airline Qantas Airways said on Monday it had agreed to pay a penalty of A$100 million ($66 million) to settle a lawsuit that accused it of illegally selling thousands of tickets for flights that had already been canceled.
The penalty is subject to the approval of the Federal Court of Australia, it said in a statement.
Qantas settled with the ACCC and will initiate a A$20 million remediation program for affected passengers. The airline will pay each impacted customer ranging from A$225 to A$450.
“We are pleased to have secured these admissions by Qantas that it misled its customers, and its agreement that a very significant penalty is required as a result of this conduct,” ACCC Chair Gina Cass-Gottlieb said in a statement. “The size of this proposed penalty is an important milestone in enforcing the Australian Consumer Law.”
Last August, the ACCC filed a lawsuit against Qantas. The ACCC alleged that flights remained on sale after cancellation.
“When flying resumed after the Covid shutdown, we recognize Qantas let down customers and fell short of our own standards,’ Qantas CEO Vanessa Hudson said.
“We know many of our customers were affected by our failure to provide cancellation notifications in a timely manner and we are sincerely sorry.”
Furthermore, this penalty serves as a stark reminder to airlines worldwide to uphold high standards of customer service and communication.
Additionally, the penalty highlights the significance of transparency and accountability in the airline sector. The Qantas Flight Cancellation case reminds airlines to prioritize customer welfare and communication during operational challenges.
Additionally, it emphasizes the importance of proactive measures to prevent similar incidents in the future.
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