Australian airline Qantas faces a $66 million fine following a contentious “ghost flights” scandal, where it was accused of selling seats on flights that had long been canceled.
The country’s competition watchdog revealed that Qantas admitted to misleading consumers by advertising seats on tens of thousands of flights despite their cancellations.
In addition to the hefty fine, Qantas will compensate 86,000 affected travelers with $13 million. According to the Australian Competition and Consumer Commission chairperson Gina Cass-Gottlieb, many consumers were left in a lurch after making holiday and business plans based on bookings for non-existent flights. The airline’s conduct was sharply criticized as “egregious and unacceptable.”
Qantas CEO Vanessa Hudson expressed regret, acknowledging the airline’s failure to provide timely cancellation notifications. She emphasized their commitment to rectifying the situation and apologized sincerely to affected customers.
The $66 million fine, equivalent to Aus$100 million, is pending court approval. Qantas, known as the “Spirit of Australia,” has been grappling with a tarnished reputation, exacerbated by high ticket prices, service complaints, and mass layoffs during the COVID-19 pandemic.
Despite defending its practice of selling seats on canceled flights, Qantas faced backlash from consumers. It argued that customers purchase a “bundle of rights” rather than specific seats, with a promise to do its best to ensure timely travel.
Qantas’ financial performance has seen a notable rebound, with an annual profit of $1.1 billion last year, signaling recovery from the turbulence of the Covid years. Amidst the controversy, veteran CEO Alan Joyce announced his early retirement in September last year.
