Australia’s Qantas to pay $79 million to settle ‘ghost flights’ case

Sydney — Qantas Airways has agreed to pay 120 million Australian dollars ($79 million) to settle a lawsuit over the sale of thousands of tickets on already canceled flights, in an attempt to end a reputational crisis that has engulfed the airline.

Sydney — Qantas Airways has agreed to pay 120 million Australian dollars ($79 million) to settle a lawsuit over the sale of thousands of tickets on already canceled flights, in an attempt to end a reputational crisis that has engulfed the airline. The company will split 20 million Australian dollars between more than 86,000 customers who booked tickets on the so-called “ghost flights” and pay a fine of 100 million instead of defending the lawsuit it had previously vowed to fight, Qantas and the Australian Competition and Consumer Commission (ACCC) said on Monday. The fine is the biggest ever for an Australian airline and among the largest globally in the sector, although some Australian banks and casino operators have faced higher penalties. “We recognize Qantas let down customers and fell short of our own standards,” CEO Vanessa Hudson said in a statement. The settlement “means we can compensate affected customers much sooner than if the case had continued in the Federal Court,” added Hudson, noting the court still must sign off on the settlement. If the court approves, the settlement will resolve a dispute that featured prominently at a time when Qantas’s brand value tanked in consumer surveys amid a spike in complaints about cancellations.