Qantas' legal battle with the ACCC kicks off with first hearing
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Qantas airline has landed itself in hot water with the Australian Competition and Consumer Commission (ACCC) over allegations it engaged in misleading conduct by continuing to sell tickets for flights it had already cancelled.
The accusations stem from a turbulent period for Qantas earlier this year when the airline cancelled around 10,000 flights, or a quarter of its schedule, between May and July 2022.
The mass cancellations left thousands of passengers stranded and scrambling to make new arrangements.
Many affected customers have spoken out about only being informed of their flight cancellation days or even just hours before departure time, despite having booked months in advance.
Some even claim they were not notified at all and only found out when they arrived at the airport.
The ACCC alleged Qantas continued to sell tickets for these cancelled flights for weeks and, in some cases, up to 48 days afterwards without notifying new ticket purchasers.
They claim this constitutes false, misleading and deceptive conduct under Australian consumer law.
The consumer watchdog initiated Federal Court action against Qantas in October, and the first preliminary hearing was held this week, where upcoming court dates were set. Qantas could face hefty penalties if found to have breached the law.
The parties will return to the court on February 28 next year.
In their defence, Qantas insisted they did nothing illegal. The company had filed a legal defence denying that laws were broken.
In a press release, the airline accused the ACCC of failing to grasp the complex 'realities' of running an airline during a pandemic.
'While mistakes were made by Qantas, the ACCC's legal case ignores the realities of the aviation industry—airlines can't guarantee specific flight times,' said the company.
Qantas clarified that they didn't have 'ghost flights'. They explained that customers who paid for a flight were either provided with a flight or refunded, so there was no 'fee for no service' situation.
Qantas had a great year, making a profit of $1.7 billion in the last financial year. However, some longtime Qantas customers feel like they're paying the price for this success.
The airline aimed for an underlying pre-tax profit of $2.5 billion, which they pretty much hit. In February, they already made $1.4 billion in profit in their half-yearly results.
This result aligns with Qantas' expectations, as they told investors in May that they were aiming for a profit between $2.4 billion and $2.5 billion. This is quite a turnaround from a year ago when they reported a loss of $860 million.
Qantas also saw its revenue double to $19.8 billion in the last financial year, and the company reduced its net debt to $2.89 billion.
Members, we'd like to hear your thoughts on the recent news about Qantas. Were any of you impacted by the cancelled flights? Do you think the airline did a good job providing replacement flights and refunds to affected customers? Please share your experiences and opinions in the comments section below.
The accusations stem from a turbulent period for Qantas earlier this year when the airline cancelled around 10,000 flights, or a quarter of its schedule, between May and July 2022.
The mass cancellations left thousands of passengers stranded and scrambling to make new arrangements.
Many affected customers have spoken out about only being informed of their flight cancellation days or even just hours before departure time, despite having booked months in advance.
Some even claim they were not notified at all and only found out when they arrived at the airport.
The ACCC alleged Qantas continued to sell tickets for these cancelled flights for weeks and, in some cases, up to 48 days afterwards without notifying new ticket purchasers.
They claim this constitutes false, misleading and deceptive conduct under Australian consumer law.
The consumer watchdog initiated Federal Court action against Qantas in October, and the first preliminary hearing was held this week, where upcoming court dates were set. Qantas could face hefty penalties if found to have breached the law.
The parties will return to the court on February 28 next year.
In their defence, Qantas insisted they did nothing illegal. The company had filed a legal defence denying that laws were broken.
In a press release, the airline accused the ACCC of failing to grasp the complex 'realities' of running an airline during a pandemic.
'While mistakes were made by Qantas, the ACCC's legal case ignores the realities of the aviation industry—airlines can't guarantee specific flight times,' said the company.
Qantas clarified that they didn't have 'ghost flights'. They explained that customers who paid for a flight were either provided with a flight or refunded, so there was no 'fee for no service' situation.
Qantas had a great year, making a profit of $1.7 billion in the last financial year. However, some longtime Qantas customers feel like they're paying the price for this success.
The airline aimed for an underlying pre-tax profit of $2.5 billion, which they pretty much hit. In February, they already made $1.4 billion in profit in their half-yearly results.
This result aligns with Qantas' expectations, as they told investors in May that they were aiming for a profit between $2.4 billion and $2.5 billion. This is quite a turnaround from a year ago when they reported a loss of $860 million.
Qantas also saw its revenue double to $19.8 billion in the last financial year, and the company reduced its net debt to $2.89 billion.
Key Takeaways
- Qantas has faced court action brought by the Australian Competition and Consumer Commission over allegations of engaging in false, misleading, or deceptive conduct by selling tickets for cancelled flights.
- It is alleged that Qantas did not notify existing ticket holders for 10,000 cancelled flights for an average of 18 to 48 days between May and July 2022. About a quarter of their flights during this period were cancelled.
- The ACCC is seeking penalties, injunctions, declarations, and costs from Qantas.
Members, we'd like to hear your thoughts on the recent news about Qantas. Were any of you impacted by the cancelled flights? Do you think the airline did a good job providing replacement flights and refunds to affected customers? Please share your experiences and opinions in the comments section below.