The ACCC have launched action against Qantas in the Australian Federal Court, alleging the airline engaged in false, misleading conduct, advertising tickets for over 8,000 flights that had already been cancelled, but were still on sale.
The ACCC alleges over 8,000 flights were scheduled for departure between May and July last year, and Qantas kept selling tickets on the website for over two weeks, or sometimes up to 47 days, following the cancellation of the flights.
Also alleged was that for over 10,000 flights scheduled for departure between May and July last year, the airline didn’t notify existing ticketholders the flights were cancelled for around 18 days, or sometimes up to 48 days.
It was alleged the airline didn’t update its “Manage Booking” webpage either for updates regarding cancellations, and for around 70% of cancelled flights, tickets were still being sold on the website for at least two days, and ticketholders weren’t informed of cancellations for at least two days.
ACCC Chair Gina Cass-Gottlieb said, “The ACCC has conducted a detailed investigation into Qantas’ flight cancellation practices. As a result, we have commenced these proceedings alleging that Qantas continued selling tickets for thousands of cancelled flights, likely affecting the travel plans of tens of thousands of people.”
“We allege that Qantas’ conduct in continuing to sell tickets to cancelled flights, and not updating ticketholders about cancelled flights, left customers with less time to make alternative arrangements and may have led to them paying higher prices to fly at a particular time not knowing that flight had already been cancelled.”
“There are vast distances between Australia’s major cities. 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. Cancelled flights can result in significant financial, logistical and emotional impacts for consumers.”
The investigation included engaging with those impacts and serving compulsory information notices on Qantas. There was detailed data analysis which identified Qantas cancelled almost 1-in-4 flights between May and July 2022, with around 15,000 out of 66,000 domestic and international flights from all states and territories cancelled.
Ticketholders expected to travel on Qantas flight QF93 from Melbourne to Los Angeles on May 6th 2022 were first notified of the cancellation on May 4th, two days prior to the scheduled departure, four days after Qantas cancelled the flight.
One ticketholder was given a replacement flight one day before their original departure, communicated exclusively through the Qantas app. This ticketholder had to change connecting flights, had a 15 hour layover in LA, and was left $600 out of pocket.
Ms Cass-Gottlieb continued, “We allege that Qantas made many of these cancellations for reasons that were within its control, such as network optimisation including in response to shifts in consumer demand, route withdrawals or retention of take-off and landing slots at certain airports.”
“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.”
The ACCC are now seeking orders such as penalties, injunctions, declarations, and costs.
