Qantas, the Australian airline, has consented to pay a fine of $66 million following a significant “ghost flights” scandal, wherein it was accused of continuing to sell seats on flights that had long been cancelled.
The Australian Competition and Consumer Commission revealed that Qantas “acknowledged misleading consumers” by advertising seats on tens of thousands of flights despite their cancellation.
Additionally, Qantas will provide $13 million in compensation to 86,000 affected travelers due to the cancellations and subsequent botched rescheduling.
Australian Competition and Consumer Commission Chairperson, Gina Cass-Gottlieb, condemned Qantas’ actions as “egregious and unacceptable,” highlighting the impact on consumers who made travel plans based on bookings for flights that were ultimately non-existent.
Qantas CEO Vanessa Hudson admitted the airline’s failure to meet its own standards, acknowledging that many customers were affected by the lack of timely cancellation notifications.
The $66 million fine, equivalent to Aus$100 million, awaits court approval.
Despite Qantas defending its practice of selling seats on cancelled flights by asserting customers purchase a “bundle of rights,” the airline’s reputation has suffered due to various issues, including soaring ticket prices and claims of subpar service, exacerbated by the pandemic-related layoffs of ground staff.
The airline, known as the “Spirit of Australia,” experienced a financial resurgence last year, posting a profit of $1.1 billion. However, amid criticism, longtime CEO Alan Joyce announced his early retirement in September.
