Qantas Responds to ACCC Lawsuit Over Cancelled Flights, Revamps Customer Policies

Qantas Airways has responded to a lawsuit accusing it of illegally selling thousands of flight tickets that were subsequently canceled. The Australian Competition and Consumer Commission (ACCC) alleged that some flights were still being sold weeks after cancellations.

Qantas argues that the ACCC's lawsuit overlooks the fundamental realities of the airline industry, according to Reuters.

Qantas Implements Changes for Customer Benefit

Bloomberg reported that in its defense submitted to the Federal Court, Qantas contends that the actions taken do not constitute unfair practices. The airline argues that the ACCC's accusations fail to account for the challenges inherent in the industry.

Qantas asserts that while every effort is made to operate flights as scheduled, unforeseen circumstances such as weather conditions can lead to delays and cancellations. The airline acknowledges responsibility for some delays, particularly as it works towards restarting international travel in 2022.

Qantas emphasizes that impacted customers were reaccommodated on alternative flights or provided with a full refund, denying the allegations of charging a "fee for no service."

Citing customer concerns over expiring flight credits, Qantas announced the removal of the expiry date for unused credits originally set for December. This decision aims to alleviate customer dissatisfaction and provide more flexibility for travellers affected by cancelled flights.

Qantas' prior CEO has expedited their retirement, while the chairman plans to step down in the coming year, both attributing their departures to the ongoing ACCC lawsuit. Additionally, the airline faced a civil lawsuit resulting in findings that it unlawfully terminated 1,700 ground staff in 2020. The court is expected to determine penalties for this case.

Accusations of Anti-Competitive Behavior

Qantas has also faced allegations of inhibiting competition by successfully lobbying the federal government to restrict Qatar Airways from expanding its flight offerings to Australia. This accusation raises concerns over fair competition practices within the industry.

Qantas firmly maintains that it upholds industry standards and prioritizes customer satisfaction. The airline continues to defend its actions, emphasizing the unforeseeable challenges faced in operating flights reliably.

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