Qantas to refund $20 million to customers for cancelled flights

As we all know, the travel industry has faced unprecedented challenges in the wake of the COVID-19 pandemic, with flight cancellations and schedule changes becoming all too common.

For many people, these disruptions have been more than just an inconvenience; they've been a significant source of stress and disappointment.

In a recent development that's sure to catch the attention of many Australian travellers, Qantas announced it will repay a staggering $20 million to customers affected by cancelled flights.



This decision comes after the airline was found to have engaged in 'misleading' advertising practices for flights that were already earmarked for cancellation during the post-COVID era.

Additionally, Qantas faced criticism for failing to notify customers of these cancellations in a timely manner.


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Qantas will repay $20 million to the affected customers. Image source: Pexels



The agreement, which was announced in conjunction with the Australian Competition and Consumer Commission (ACCC), also includes a further agreement for Qantas to pay a $100 million civil penalty, subject to court approval.

ACCC accused Qantas of advertising tickets for more than 8,000 cancelled flights between May 21, 2021 and July 7, 2022, leading to a Federal Court action launched against Qantas in August last year.

Moreover, Qantas allegedly failed to promptly notify existing ticketholders of over 10,000 flights scheduled to depart between May and July 2022.



Qantas Group CEO Vanessa Hudson stated: ‘Today represents another important step forward as we work towards restoring confidence in the national carrier.’

‘When flying resumed after the COVID shutdown, we recognise Qantas let down customers and fell short of our own standards.’

Meanwhile, ACCC Chair Gina Cass-Gottlieb described the airline's conduct as 'egregious and unacceptable,' highlighting the impact on consumers who were left in the lurch due to these practices.

For those affected, Qantas has pledged to complete repayments by the end of August 2023, a gesture aimed at rectifying the processing delays of cancellation decisions.

More than 86,000 customers who booked a flight at least two days after the cancellation decision are set to receive compensation.



The payments will vary, with $225 allocated for domestic or trans-Tasman flights and $450 for other international flights. This is in addition to any refund or alternative flight options that may have already been offered.

To facilitate these repayments, Qantas is setting up an online portal managed by Deloitte.

Starting in June, affected customers will receive emails with instructions on how to make a claim.

For those eager to learn more, additional information is available on Qantas' website.



CEO Hudson also acknowledged the stress that returning to travel has caused many customers.

‘The return to travelling was already stressful for many and we did not deliver enough support for customers and did not have the technology and systems in place to support our people,’ she said.

‘We have since updated our processes and are investing in new technology across the Qantas Group to ensure this doesn't happen again,’ the executive assured.

It's worth noting that the ACCC has decided not to proceed with its claims against Qantas regarding the wrongful acceptance of payment.

This includes any allegations that the airline received payment for services it did not intend to provide.

For our readers who may have been affected by these cancellations, we encourage you to check your eligibility for a refund and take the necessary steps to claim what you're owed.

It's a small consolation for the disruption to your travel plans, but it's a step towards holding service providers accountable and ensuring better experiences in the future.

You can watch ACCC Chair Gina Cass-Gottlieb's statement here:


Source: ABC News (Australia)/YouTube​

Key Takeaways

  • Qantas has agreed to repay $20 million to customers over misleading advertisements for flights that were cancelled and for not promptly notifying customers of cancellations.
  • The airline will also pay a $100 million civil penalty, pending court approval, following Federal Court action by the ACCC.
  • More than 86,000 affected customers will be compensated, with payments ranging from $225 for domestic or trans-Tasman flights to $450 for other international flights.
  • CEO Vanessa Hudson acknowledged Qantas let down customers and did not provide adequate support, and the airline has updated processes and is investing in new technology to prevent future issues.
Have you been impacted by flight cancellations or schedule changes with Qantas or any other airline? Share your experiences with us in the comments below.
 
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Qantas should have been fined 10x that amount. They can also stick the welcome to country BS as well.
 
I hardly call this conduct 'misleading'.
It was downright theft.
I hope they actually do get their act together under this new leadership.
Qantas was a good airline until that git Joyce ran it into the ground.
Up and up.
 
This and other costs incurred by qantas should be recovered from that nasty little leprechaun that got the company in trouble in the first place.
 
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