Australia's flagship airline Qantas Airways Limited reached a settlement agreement with the Australian Competition and Consumer Commission (ACCC) to pay $66 million for breaching the Australian Consumer Law, the ACCC reported on Monday.
According to the statement, Qantas has admitted that it misled customers by advertising tickets for flights it had decided to cancel beforehand, as well as canceling flights without promptly notifying ticketholders of its decision. Qantas will also be forced to pay AU$20 million to more than 86,000 customers, with each impacted customer receiving payments from AU$225 to AU$450. The penalty awaits the approval of the Federal Court of Australia.
"Qantas’ conduct was egregious and unacceptable. Many consumers will have made holiday, business and travel plans after booking on a phantom flight that had been cancelled," ACCC Chair Gina Cass-Gottlieb said.