By Michael Janda, ABC business editor
Qantas continued selling tickets on some flights that had already been cancelled. (file image) Photo: WILLIAM WEST/AFP
Qantas has reached an agreement with the Australian Competition and Consumer Commission (ACCC) to settle a lawsuit against the airline for selling seats on flights that had already been cancelled.
Under the settlement, Qantas will institute a remediation programme for affected passengers, with payments ranging from A$225 (NZ$247) to A$450 (NZ$495), and expected to total about A$20 million (NZ$22m).
The ACCC said these payments were additional to any remedies already offered by Qantas, such as alternative flights or refunds.
Subject to the approval of the Federal Court of Australia, the airline will also pay a A$100m (NZ$110m) civil penalty to the federal government for breaching the Australian Consumer Law.
Qantas said it intended to commence the remediation programme in advance of the court approval process and would recognise the costs as an expense in its full-year accounts, although the money for the fine and remediation was not expected to be paid out until next financial year, after 30 June.
Qantas chief executive Vanessa Hudson said the settlement meant affected customers were likely to get their money much more quickly than if a court case had proceeded.
"We are focused on making the remediation process as quick and seamless as possible for customers," she said in a statement.
Qantas said, as part of the settlement, the ACCC was no longer proceeding with claims that Qantas wrongfully accepted payment for a service it did not, and had no intention of, providing.
For its part, the ACCC said Qantas had admitted misleading consumers by advertising tickets for tens of thousands of flights it had already decided to cancel, and by cancelling thousands more flights without promptly telling ticketholders.
- ABC