In a case poised to send shockwaves through the aviation industry, the Australian Competition and Consumer Commission (ACCC) has initiated an unprecedented legal challenge against Qantas Airways. The airline stands accused of an astonishing breach of consumer trust—advertising and selling tickets for over 8,000 flights it had knowingly cancelled yet kept live on its sales platforms.
A Trail of Damaged Trust and Unfulfilled Promises.
According to the ACCC, Qantas operated a façade of normalcy on its online platforms, presenting flights for sale for an average of more than two weeks after they had been cancelled. In some extreme instances, this period stretched to an astonishing 47 days. The scale is staggering: around 70% of the airline’s cancelled flights between May and July 2022 were involved in this deceit, likely affecting the travel plans of tens of thousands of customers.
Moreover, the allegations claim that Qantas kept existing ticket holders in the dark about cancellations for an average of 18 days. This sometimes stretched to 48 days of uncertainty, further contributing to the consumer nightmare.
Crucial Reliability Shattered.
“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,” said ACCC Chair Gina Cass-Gottlieb. “Cancelled flights can result in significant financial, logistical, and emotional impacts.”
Numbers that Speak Volumes.
According to in-depth data analysis conducted by ACCC’s specialist data analysts, Qantas cancelled almost 1 in 4 flights between May and July 2022. That amounts to a staggering 15,000 out of 66,000 planned domestic and international flights. Astonishingly, this legal challenge focuses on more than 10,000 of those cancelled flights.
Among the victims is a consumer given a replacement flight a day before their original departure date. This last-minute notice led them to change connecting flights and endure a 15-hour layover in Los Angeles, costing them an additional $600.
Behind the Curtains: The Reasons for Cancellations.
Although flight cancellations can occur for various reasons, such as bad weather or mechanical issues, the ACCC alleges that many of Qantas’s cancellations were controllable circumstances. These include network optimization in response to shifts in consumer demand or retention of take-off and airport landing slots.
Public Image on the Line.
The ACCC’s relationship with Qantas has been fraught with tension. Last year alone, the ACCC received more than 1,300 complaints about Qantas cancellations—accounting for half of all complaints about the airline reported to the ACCC. Amid this, Qantas has claimed that most consumers holding COVID flight credits are eligible for refunds. However, the ACCC disputes this claim and is closely monitoring the situation.
Legal Consequences.
The ACCC is pushing for penalties, injunctions, declarations, and costs. The maximum liability for each breach of the Australian Consumer Law could be as high as $10 million, three times the total benefits obtained, or 10% of the corporation’s annual turnover—whichever is greater.
The Larger Implications.
The case brings to light vulnerabilities in the airline industry and puts pressure on other carriers to be more transparent with consumers. It could set a precedent that mandates clear and immediate communication regarding flight cancellations, potentially revolutionizing the air travel experience for customers.
Conclusion.
As the legal storm gathers momentum, the critical question remains: will this case prompt the necessary overhaul in Qantas’s operational ethics, or will it merely be a momentary turbulence in its century-long flight? One thing is clear: the court of public opinion has already begun its session and waits eagerly for justice to be served.
Written by: Matthew Thomas