Sydney: Qantas Group has reached a settlement with the Australian Competition and Consumer Commission (ACCC) over the airline’s flight cancellation procedures. The agreement, pending Federal Court approval, includes a $20 million remediation program for passengers affected by the airline’s cancellations, with individual payments ranging from $225 to $450.
Additionally, Qantas has agreed to a $100 million civil penalty as part of the settlement. The ACCC and Qantas are expected to seek the Federal Court’s endorsement of the proposed penalty soon. Despite this, Qantas is set to initiate the remediation program before the court’s decision.
Vanessa Hudson, CEO of Qantas Group, expressed her commitment to rebuilding trust in Australia’s flagship carrier. “We acknowledge our shortcomings in customer service when flights resumed post-COVID shutdowns,” Hudson stated. “We apologize to our customers for the inconvenience caused by delayed cancellation notifications. We have since improved our processes and invested in new technology to prevent future occurrences.”
The ACCC’s case against Qantas focused on the airline’s cancellation practices after the resumption of services following COVID-related disruptions. The case has been resolved, with the ACCC withdrawing claims related to wrongful acceptance of payment.
The remediation program is set to compensate over 86,000 customers who booked flights after the cancellation decisions were made. The compensation includes $225 for domestic and trans-Tasman flights and $450 for international flights, in addition to any previously offered refunds or alternative flights.
Qantas will facilitate the compensation through an online portal managed by Deloitte and will conduct an independent audit of the process. Impacted customers will receive email notifications from Qantas with instructions on how to submit their claims.
This settlement marks a pivotal step for Qantas as it strives to enhance customer service and regain the confidence of its passengers.