Selling seats on already cancelled flights - Qantas forced to pay $120 million

The Australian Competition and Consumer Commission (ACCC) has declared that Qantas will pay $120 million (79,248,000.00 US) to resolve a conflict with the airline for marketing seats on flights that were already cancelled.

Qantas has settled a lawsuit with the Australian Competition and Consumer Commission (ACCC) for selling seats on flights that were already cancelled. As part of the settlement, Qantas will implement a remediation program for impacted passengers, offering payments from $225 for domestic customers to $450 for international customers, expected to total around $20 million. "We anticipate approximately 87,000 consumers, who purchased tickets on flights Qantas had already planned to cancel," said ACCC chair Gina Cass-Gottlieb. These payments are in addition to any other remedies Qantas has offered, like alternative flights or refunds. Pending Federal Court of Australia's approval, Qantas will also pay a $100 million civil penalty to the federal government for violating Australian Consumer Law. 

Ms Cass-Gottlieb, in a statement, labeled the airline's behavior as "egregious and unacceptable." "The penalty is substantial, yet Qantas is somewhat fortunate it's not larger," she commented. "The proposed penalty reflects Qantas' cooperation, potentially reducing the amount. However, the ACCC initially sought a higher penalty." Dr Kemp noted the Federal Court might still decline the proposed settlement and impose a heftier fine. "The Federal Court does not simply approve penalties presented by the ACCC and respondents; it makes its own decisions," she stated.