Qantas Challenges ACCC’s Allegations of False Advertising in Federal Court Response

Qantas (QF), Australia’s flagship carrier, has formally refuted allegations made by the Australian Competition and Consumer Commission (ACCC) regarding its ticket sales practices. In its response filed with the Federal Court, Qantas rejects the ACCC’s claims of engaging in false, misleading, or deceptive conduct by advertising tickets for over 8,000 flights that had been canceled but were still available for purchase.

The ACCC filed charges against Qantas in August 2023, accusing the airline of continuing to sell tickets for flights that had already been canceled, with an average sales period of two weeks and, in one instance, up to 47 days. Additionally, the regulator alleges that Qantas failed to promptly inform passengers of around 10,000 flight cancellations over the same period, with an average notification time of 18 days and, in some cases, up to 48 days.

In response to the allegations, Qantas issued a statement on October 30, acknowledging its shortcomings in handling the cancellations but highlighting the fundamental reality that airlines cannot guarantee flight times due to the unpredictable nature of travel. The statement contends that the ACCC’s case overlooks this inherent uncertainty and key conditions that apply when airlines sell tickets.

Qantas denies the accusation of illegally obtaining a ‘fee for no service,’ asserting that affected passengers were either rebooked onto alternative flights or offered refunds. The airline maintains that it did not delay communications with passengers for commercial gain and refutes the suggestion that flights were canceled to protect slots, especially when slot waivers were in effect at most airports during that period.

The case, identified as the Australian Competition and Consumer Commission v. Qantas Airways Limited (case no: VID685/2023), is scheduled for a case management hearing on November 8. The maximum penalties for proven breaches of consumer laws cited in the case include AUD10 million (USD6.3 million), three times the total benefits obtained, or 10% of the corporation’s annual turnover for each violation. Legal representation for the ACCC is provided by Baker & McKenzie, while Johnson Winter & Slattery represent Qantas in this ongoing legal dispute. Stay tuned for further updates as the case progresses.