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Qantas, the national airline of Australia, announced on Monday a deal to pay $79 million to settle a lawsuit filed by the Australian Competition and Consumer Commission for selling tickets for over 8,000 flights that it knew would not take off. The payment, which equals 120 million Australian dollars, was for tickets sold between May 2021 and July 2022. It also includes 20 million Australian dollars in compensation to more than 86,000 customers. The airline also faces a 100 million dollars fine, pending court approval.
Qantas CEO, Vanessa Husdon, apologized for the airline’s failure to adequately inform customers about cancellations. She stated that Qantas had updated its procedures and invested in new technology to prevent future occurrences. Vanessa Husdon also expressed hope that the settled lawsuit would contribute to covering trust in the national carrier.
Consumer watchdog chairwoman, Gina Cass-Gottlieb, appreciated Qantas’s agreement to the large penalty due to misleading its customers. The airline has faced several controversies in recent years, with customers complaining about unreliable flights and pricey tickets. Additionally, Qantas met criticism for rewarding its board and former chief executive with high salaries following the unlawful dismissal of 1,700 luggage handlers.
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