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ACCC launches court action, alleges Qantas sold tickets to cancelled flights

Anna McGuinness
Updated September 8 2023 - 12:50pm, first published August 31 2023 - 9:39am
Qantas has copped flak for rejecting calls to return billions in pandemic aid despite posting a record $2.47 billion profit in the past financial year.

Australia's consumer watchdog has launched court action against Qantas for allegedly selling tickets to more than 8000 flights the airline had already cancelled.

The Australian Competition and Consumer Commission (ACCC) alleges the airline engaged in false, misleading or deceptive conduct following an investigation into Qantas' flight cancellation practices.

Qantas kept selling tickets for more than 8000 flights scheduled between May and July 2022 for an average of two weeks and in some cases up to 47 days after cancellation, the ACCC alleges.

Court action has been launched against Qantas by the Australian Competition and Consumer Commission. Picture file
Court action has been launched against Qantas by the Australian Competition and Consumer Commission. Picture file

In one example, the ACCC alleges Qantas sold 21 tickets to a flight from Sydney to San Francisco after it had scrapped the flight, with the last ticket sold 40 days after the cancellation.

And for more than 10,000 flights in the same time period, the airline allegedly did not notify ticketholders that their flights had been cancelled for an average of 18 days, and in some cases up to 48 days.

ACCC chair Gina Cass-Gottlieb said it was likely the travel plans of tens of thousands of people were affected by Qantas' alleged conduct during this period.

"Reliable air travel is essential for many consumers in Australia who are seeking to visit loved ones, take holidays, grow their businesses or connect with colleagues," she said.

"Cancelled flights can result in significant financial, logistical and emotional impacts for consumers."

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In a statement Qantas said the period investigated by the ACCC was a time of "unprecedented upheaval" for the industry.

"All airlines were experiencing well-publicised issues from a very challenging restart, with ongoing border uncertainty, industry wide staff shortages and fleet availability causing a lot of disruption," the statement said.

The airline said its management of flight cancellations focused on customers being provided with rebooking or refund options.

"It's a process that is consistent with common practice at many other airlines," the statement said.

"We will examine the details of the ACCC's allegations and respond to them in full in court."

The investigation found Qantas cancelled almost one in four flights between May and July 2022 - about 15,000 in total.

The court proceedings relate to more than 10,000 of those cancelled flights.

The ACCC also alleges Qantas cancelled "many" flights for reasons within the airline's control.

"However, this case does not involve any alleged breach in relation to the actual cancellation of flights, but rather relates to Qantas' conduct after it had cancelled the flights," Ms Cass-Gottlieb said.

The ACCC is seeking orders including penalties, injunctions, declarations and cost through action in the Federal Court of Australia.

The same day the court action was launched by the ACCC, Qantas announced it was scrapping the expiry date on hundreds of millions worth of COVID travel credits.

Anna McGuinness

Anna McGuinness

Breaking News National Journalist