Qantas destined for court
Qantas has made headlines this week for allegedly taking money it was not owed, and making it very difficult to get back.
The Australian Competition and Consumer Commission (ACCC) is taking the airline giant to court, accusing it of deceptive practices related to ticket sales for thousands of flights that had already been cancelled.
Qantas allegedly continued selling tickets for these flights for an average of two weeks and, in some cases, up to 47 days after they were scrapped internally.
These allegations have raised concerns about the impact on travellers, including confusion, higher costs, and delays.
ACCC Chair Cass-Gottlieb stated that Qantas's actions, which she says were deliberate and controllable, likely disrupted the travel plans of thousands of people.
The regulator began its investigation in response to numerous customer complaints, receiving approximately 1,300 complaints related to cancellations in the past year.
The legal action comes amid broader controversy surrounding Qantas.
The airline recently faced criticism for not disclosing the full value of unredeemed flight credits held by its customers, leading to intense public pressure.
In response, Qantas has now removed the expiry dates on $570 million worth of COVID travel credits issued before September 30, 2021.
Customers with these credits can now request a cash refund, and Jetstar customers can use their COVID vouchers indefinitely.
Additionally, there is an ongoing class action related to flight credits, offering affected consumers the opportunity to seek remedies against Qantas.
In a separate but related issue, Qantas has been accused of benefiting from government interventions in the aviation market to protect its profits.
The government recently blocked Qatar Airways from expanding its services in Australia, citing the “national interest”.
Critics argue that this move limits competition and keeps ticket prices artificially high.
Assistant Treasurer Stephen Jones defended the government's decision, emphasising the importance of a profitable airline industry for Australia's economy.
However, he later distanced himself from the Qatar Airways decision, stating it was made by Transport Minister Catherine King.
As these controversies unfold, Qantas faces legal and public scrutiny, potentially reshaping the landscape of Australia's airline industry.