Qantas Airways Reaches Settlement in Lawsuit
Australian carrier Qantas Airways has reached a settlement in a lawsuit, agreeing to pay a penalty of A$100 million ($66 million) over allegations of illegally selling tickets for flights that were already cancelled.
Settlement Details
- The settlement, subject to approval by the Federal Court of Australia, includes an additional A$20 million remediation program for affected passengers.
- Impacted customers will receive compensation ranging from A$225 to A$450 each under the remediation program.
ACCC’s Concerns Addressed
This resolution marks a step in addressing concerns raised by the Australian Competition and Consumer Commission (ACCC) regarding Qantas’ conduct.
ACCC Chair’s Response
ACCC Chair Gina Cass-Gottlieb expressed satisfaction with the outcome, highlighting Qantas’ acknowledgment of misleading its customers.
Cass-Gottlieb emphasized the importance of the proposed penalty, stating, “The size of this proposed penalty is an important milestone in enforcing the Australian Consumer Law.”
Qantas CEO’s Acknowledgment
Qantas CEO Vanessa Hudson acknowledged the airline’s shortcomings, particularly in providing timely cancellation notifications, and expressed apologies to affected customers.
Hudson outlined measures taken to address the issues raised, including process upgrades and investments in new technology to prevent similar incidents in the future.
Financial Implications
The financial implications of the remediation program and penalty will be reflected in Qantas’ full-year financial results ending June 30, categorized as an expense outside the airline’s key profit measure, underlying profit before tax. However, the actual cash outflow is expected to occur in the subsequent financial year.
Written by Shashwat Sankranti, breaking and writing stories for WION’s business desk. A literature nerd, closeted poet, and a novelist (in the making).
