Australian airline Qantas has agreed to pay a fine of US$66 million on Monday, May 6, following a scandal known as “ghost flights”. Qantas was accused of misleading customers by selling tickets on flights that had already been cancelled.
The airline admitted to the accusations, and the country’s competition watchdog found it guilty of misleading consumers by advertising seats on tens of thousands of flights that were no longer available. In addition to the fine, Qantas will also pay US$13 million to compensate 86,000 passengers affected by the cancellations and rescheduling issues.
The Australian Competition and Consumer Commission (ACCC) chairperson, Gina Cass-Gottlieb, said that Qantas’ conduct was unacceptable and egregious. Many customers made holiday, business, and travel plans after booking a flight that was no longer available.
Qantas CEO Vanessa Hudson acknowledged the airline’s wrongdoing and apologized for letting down its customers. She acknowledged that many customers were affected by the lack of timely cancellation notifications.
Qantas has previously defended its practice of selling seats on flights that were later cancelled. However, the airline has been facing criticism from consumers due to rising ticket prices, claims of poor service, and the sacking of 1,700 ground staff during the COVID-19 pandemic.
The US$66 million fine, which amounts to A$100 million, is still subject to court approval. As a 103-year-old national carrier, Qantas has been working to restore its reputation as the “Spirit of Australia”.
