Qantas, Australia’s largest airline, has agreed to pay a $66 million fine to settle a legal case involving the sale of thousands of tickets for flights that had already been canceled, a practice known as “ghost flights.”
Qantas, Australia’s biggest airline, has agreed to pay a $66 million penalty to settle a legal case accusing it of selling thousands of tickets for flights it had already cancelled. The Australian Competition and Consumer Commission sued the airline, claiming that it had engaged in false, misleading or deceptive conduct by advertising tickets for more than 8,000 flights that had already been cancelled.
Under the deal, the firm will also launch a plan worth up to $20 million to compensate affected passengers. Customers who bought tickets for flights that had already been cancelled for two or more days will be entitled to compensation. According to the airline, they will receive $225 for domestic flights and $450 for international tickets.
Qantas’ Chief Executive, Vanessa Hudson, said the move represented an important step toward “restoring confidence in the national carrier”. She also said the company had revamped its processes and invested in technology to avoid a repeat of the problem.
Qantas was facing a series of scandals and legal cases when Ms Hudson became the first woman to lead the airline. Her predecessor, Alan Joyce, led the company through the financial crisis, the pandemic and record fuel prices. However, by the time Mr Joyce stepped down, Qantas was facing growing public anger over expensive airfares, mass delays and cancellations, and its treatment of workers.
