Qantas Under Fire for Selling Tickets for Canceled Flights: Is This Common Practice?

Qantas, Australia’s flag carrier, is facing legal repercussions from the Australian Competition and Consumer Commission (ACCC) for allegedly selling thousands of tickets for flights that had already been canceled. The ACCC accuses Qantas of engaging in false, misleading, or deceptive conduct by selling over 8,000 tickets for flights scheduled between May and July 2022 without disclosing their cancellation.

Furthermore, the ACCC asserts that Qantas failed to notify existing ticket holders of flight cancellations, leaving passengers in the dark for an average of 18 days, and in some cases, up to 48 days after the cancellations occurred. This lack of transparency likely affected tens of thousands of travelers who had limited time to make alternative arrangements and may have incurred higher costs to secure alternative flights.

The ACCC is seeking a substantial fine, potentially exceeding Volkswagen’s 2019 fine for emissions test cheating, making it one of the largest fines ever pursued by the commission. Gina Cass-Gottlieb, the ACCC chair, condemned Qantas’s conduct as unacceptable and detrimental to consumers.

Qantas has vehemently denied these allegations and intends to defend itself in court. The airline contends that selling tickets for flights that had been canceled aligns with common industry practices, emphasizing that it aimed to provide customers with flexibility during the pandemic. Qantas asserts that it has taken corrective measures, refunding or offering credits to affected customers, and has improved its communication and transparency.

However, critics, including experts and travelers, challenge Qantas’s claims, asserting that selling tickets for canceled flights is not a widespread industry practice and may infringe on consumer rights. They also accuse Qantas of being sluggish and reluctant in processing refunds and credits, potentially withholding substantial customer funds.

In addition to legal action by the ACCC, Qantas faces a class-action lawsuit from customers seeking compensation for canceled flights due to Covid-19. These legal challenges come at a time when Qantas is grappling with the profound impact of the pandemic on its operations and finances. The airline has incurred losses exceeding $4 billion since 2020, leading to substantial job cuts and the grounding of a significant portion of its fleet.

Qantas aspires to resume international flights by December 2023, contingent on vaccination rates and travel restrictions in Australia and other countries. These legal battles pose additional challenges for the airline as it strives to recover from the ongoing disruptions caused by the global health crisis.

Sources: AirGuide Business airguide.info, msn.com, theguardian.com