They sold tickets for “ghost flights”. Historically high penalty for known lines

This court decision may hurt well-known airlines. Qantas, Australia’s largest airline, is to pay USD 100 million for selling tickets for canceled flights. Additionally, it will pay a total of USD 20 million to injured customers. An Australian federal court judge said he would approve a settlement that would end legal proceedings in the case.

Airlines sold tickets for canceled flights

In some cases, tickets were offered to travelers up to 62 days after Qantas decided to cancel the flight. 94 percent of the affected customers were flown on domestic or trans-Tasman routes and the remainder were on international routes. In court, the company admitted that customers were misled by continuing to sell tickets for canceled flights and by informing customers too late that their flights would not operate.

The agreement was concluded with the Australian Competition and Consumer Commission (ACCC). Qantas’ new chief executive, Vanessa Hudson, said the settlement would be an “important step in restoring confidence in the national carrier”.

Customers are expected to receive between $225 and $450 in refunds, on top of previous sums that were paid as part of the corrective actions taken. In total, it is up to 86 thousand. people.

The airlines informed that they have introduced changes to their systems, and customers will be informed about canceled flights no later than 48 hours after the flight cancellation, and sales will be disabled within 24 hours.

Qantas will pay a record fine

The fine is the largest ever imposed by an Australian authority under a settlement. The record fine for violating Australian consumer law was $125 million. It was imposed on Volkswagen in 2019 for deceiving customers about diesel emissions.

The ticketing scandal led to the early retirement of the airline’s former CEO, Alan Joyce.