Qantas Airlines Reaches $120 Million Settlement in ‘Ghost Flight’ Lawsuit
By Madz Dizon
May 05, 2024 11:56 PM EDT
May 05, 2024 11:56 PM EDT
Qantas has finally acknowledged its misleading practices, offering compensation to the many Australians who were affected by canceled flights.
Each individual will receive a significantl amount of money as a result of this admission.
The Australian Competition and Consumer Commission (ACCC) filed a lawsuit against the airline in the Federal Court, claiming that Qantas had engaged in deceptive conduct by selling the tickets despite the allegations.
On Monday, it was announced by the competition watchdog that the parties involved have agreed to request the court to impose a $120 million penalty.
This comes after Qantas admitted that the conduct in question lasted for a year longer than what the ACCC had alleged.
Approximately 86,597 customers will receive a compensation of around $20 million for tickets they purchased from Qantas between May 2021 and August 2023, which the airline had already determined to cancel as reported by The North West Star.
Qantas has announced compensation of $225 for domestic customers and $450 for international customers.
According to the ACCC, these payments are in addition to any remedies already provided by Qantas, such as alternative flights or refunds.
According to ABC, Qantas has announced its plans to start the remediation program before receiving court approval. The costs associated with this program will be recognized as an expense in the company's full-year accounts.
However, the payment for the fine and remediation is not anticipated to be made until the next financial year, after June 30.
According to Qantas CEO Vanessa Hudson, the settlement will result in affected customers receiving their money in a much shorter time frame compared to a court case.
Qantas has stated that, as part of the settlement, the ACCC has dropped its claims that Qantas accepted payment for a service it had no intention of providing.
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