AUSTRALIAN AIRLINE QANTAS TO PAY $79 MILLION IN COMPENSATION AND FINE OVER 'GHOST FLIGHTS' SCANDAL

NEW DELHI: Qantas, the Australian airline, has agreed to pay a $66 million fine as part of a settlement after a controversy surrounding "ghost flights." In addition to the fine, Qantas will also compensate 86,000 affected travelers with $13 million.

This situation arose due to accusations that the airline continued to sell seats on flights that had long been cancelled.

The Australian Competition and Consumer Commission revealed that Qantas acknowledged misleading consumers by advertising seats on tens of thousands of flights that were ultimately cancelled.

Gina Cass-Gottlieb, Chairperson of the Australian Competition and Consumer Commission, criticized Qantas' actions, describing them as "egregious and unacceptable."

Many consumers had made travel plans, only to discover that their booked flights were cancelled.

Qantas CEO Vanessa Hudson expressed regret over the airline's failure to meet its standards and apologized to affected customers. "We know many of our customers were affected by our failure to provide cancellation notifications in a timely manner and we are sincerely sorry," she said in a statement.

She admitted that in some instances, customers were booked on flights that had been cancelled days in advance.

The $66 million fine, equivalent to Aus$100 million, is subject to court approval. Qantas, long-dubbed as the "Spirit of Australia," has been striving to improve its reputation. The airline faced backlash due to high ticket prices, service complaints, and significant staff layoffs during the Covid-19 pandemic.

The airline recorded a $1.1 billion annual profit last year, marking a significant financial recovery from the challenges posed by the pandemic.

Veteran CEO Alan Joyce announced his early retirement amid criticism in September last year.