Qantas will pay up to about $79 million to resolve claims it sold tickets for canceled flights
Business InsiderApr 26
Qantas to Pay $79M to Settle 'Ghost Flights' Lawsuit
Image copyright: James D. Morgan/Contributor/Getty Images News via Getty Images
The Facts
Australia's Qantas Airways on Monday agreed to pay a 100M Australian dollar ($66M) penalty and AU$20M ($13M) in compensation to passengers to settle a lawsuit accusing it of selling thousands of tickets on long-canceled flights.
According to the Australian Competition and Consumer Commission, Qantas misled and deceived its customers by advertising seats on more than 8K "ghost flights" between May 2021 and July 2022.
The Spin
Narrative A
Qantas should've faced much stiffer penalties for lying to flyers, blaming COVID for its no-show, and dodging responsibility for its overloaded systems. If there's a silver lining here, it's the message this penalty — while not tough enough — will send to airlines worldwide about treating travelers well and the consequences of their actions if they don't.
Narrative B
Though its services were hampered by COVID, Qantas admitted its failure to promptly provide cancellation notifications and maintain its high standards. So Qantas is compensating wronged customers in addition to revamping its processes and improving its technology. This settlement restores Qantas’ status as a marquee carrier.