Qantas has agreed to settle a ‘ghosts flights’ case with Australia’s consumer regulator for $120 million.
The airline knowingly sold tickets for flights that had already been cancelled.
The airline will pay a $100m as a civil penalty and $20m in customer compensation.
Qantas said it has reached agreement with the Australian Competition and Consumer Commission.
The ACCC took action over allegations the airline was selling new tickets for 8,000 flights that already cancelled in its system, revelations.
The caused a huge backlash that ultimately led to CEO Alan Joyce resigning earlier than planned.
Qantas will ‘commence a projected $20 million remediation program for impacted passengers.’
Customers will receive between $225 to $450.
“Subject to the approval of the Federal Court of Australia, Qantas will pay a $100 million civil penalty,” it said.
ACCC chair Gina Cass-Gottlieb, said Qantas admitted guilt as part of the settlement.
“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.”
More than 80,000 customers will receive compensation
Source TravelMole
