Australian airline Qantas has agreed to settle thematter of the ‘ghost flight’ debacle. It has agreed reached a settlement to pay a hefty penalty of $66 million on Monday, following the contentious scandal, where the airlines was accused of selling seats continuously on flights long after they had been canceled. According to reports, the settlement also includes an additional $13 million set aside for providing as compensation to the 86,000 costumers who had been affected by the cancellations and subsequent rescheduling of the flights.
The Australian Competition and Consumer Commission (ACCC) revealed that Qantas had reportedly admitted to have deceived its customers. The commission stated that the airlines “admitted that it misled consumers” by advertising seats on tens of thousands of flights, despite the fact that these flights had been canceled long ago. ACCC chairperson Gina Cass-Gottlieb condemned Qantas’ actions as “egregious and unacceptable,” highlighting the grave impact that the deception had on consumers who had made their travel plans based on bookings for flights that no longer existed.
Qantas CEO Vanessa Hudson expressed regret over the airline’s shortcomings, acknowledging that the company had failed to meet its own standards and had disappointed its customers. Hudson, while addressing the company’s failure, pressed that many customers of the airlines had been gravely affected by the lack of timely notification about the cancellation of their flights. The CEO went on to issue a sincere apology on behalf of the airline.
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The $66 million fine is equal to approximately Aus$100 million and largely depends on the approval from the court. This settlement marks a significant step in resolving the fallout from the “ghost flights” controversy that tarnished Qantas’ reputation.
Often hailed as the “Spirit of Australia,” Qantas, with a rich aviation legacy spanning over a century, has been endeavoring to rebuild its image amid a series of challenges. The airline faced criticism over steep ticket prices, allegations of subpar service quality, and the dismissal of 1,700 ground staff during the Covid-19 pandemic.
While Qantas had previously defended its practice of selling seats on canceled flights, arguing that customers purchase a “bundle of rights” rather than specific seats, the settlement underscores the importance of transparent and ethical business practices in the airline industry.
Despite the turbulence caused by the Covid-19 pandemic, Qantas managed to post a substantial annual profit of $1.1 billion last year, signaling a remarkable financial recovery. The departure of veteran CEO Alan Joyce, announced amidst a wave of criticism in September last year, marked a pivotal moment for the airline as it navigates its path forward.
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