Qantas faces penalty and compensation payments for misleading customers
- Qantas to pay A$100 million civil penalty for selling tickets on canceled flights
- Settlement with Australian Competition and Consumer Commission includes individual payments to affected customers
- Qantas aims to resolve missteps made during the pandemic
- Allegations by ACCC pose a significant threat to Qantas’s reputation
- Qantas didn’t inform customers about canceled flights for an average of 18 days
Qantas has agreed to pay a civil penalty of A$100 million to resolve court proceedings with the Australian Competition and Consumer Commission (ACCC). The airline was accused of advertising tickets for over 8,000 flights that had already been canceled. As part of the settlement, Qantas will also make individual payments to more than 86,000 affected customers, totaling around A$20 million. This agreement is an attempt by Qantas to address the missteps made during the pandemic, which led to the retirement of its former CEO. The ACCC’s allegations have posed a significant threat to Qantas’s reputation. The regulator claimed that Qantas continued to sell tickets for canceled flights on its website for an average of more than two weeks, without informing existing customers about the cancellations for an average of about 18 days. Qantas acknowledges its failure to meet customer expectations and has taken steps to rectify the situation. The airline’s share price has shown signs of recovery since the ACCC’s legal action and the change in leadership.
Factuality Level: 8
Factuality Justification: The article provides a clear and factual account of Qantas agreeing to pay a civil penalty for advertising tickets for canceled flights. It includes relevant details such as the amount of the penalty, the number of affected customers, and the reasons behind the regulator’s allegations. The article does not contain any obvious bias, sensationalism, or misleading information.
Noise Level: 3
Noise Justification: The article provides relevant information about Qantas agreeing to pay a civil penalty for advertising tickets for canceled flights. It includes details about the settlement with the regulator, the individual payments to affected customers, and the impact on Qantas’s reputation. The article also mentions the reasons behind the missteps made by Qantas and the consequences of the actions taken. Overall, the article stays on topic, supports its claims with evidence, and provides insights into the aftermath of the pandemic on the airline industry.
Financial Relevance: Yes
Financial Markets Impacted: Qantas
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to Qantas, a financial company, and its agreement to pay a civil penalty to resolve court proceedings with a regulator. However, there is no mention of an extreme event or its impact.
Public Companies: Qantas (QAN)
Key People: Alan Joyce (former chief executive), Gina Cass-Gottlieb (chair of the ACCC), Vanessa Hudson (Qantas chief executive)
Reported publicly:
www.marketwatch.com 
