Qantas (QF, Sydney Kingsford Smith) has filed its response to claims by the Australian Competition and Consumer Commission (ACCC), rejecting allegations that it had engaged in false, misleading or deceptive conduct by advertising tickets for more than 8,000 flights that it had already cancelled but not removed from sale.
The competition regulator filed Federal Court charges against Qantas in August 2023 concerning its ticket sales practices over the May - July 2022 period. In addition to claiming the airline continued to sell tickets on flights it had already cancelled for an average of two weeks (in one case, for 47 days), the ACCC alleges Qantas failed to promptly notify passengers of approximately 10,000 flight cancellations over the same period. The ACCC said the average time between cancelling a flight and telling passengers was 18 days, but up to 48 days.
In an October 30 statement, Qantas says it knows it let passengers down, but the ACCC charges fail to realise that airlines cannot guarantee flight times. "In purely legal terms, the ACCC's case ignores a fundamental reality and a key condition that applies when airlines sell a ticket," the statement reads. "While all airlines work hard to operate flights at their scheduled times, no airline can guarantee that. That's because the nature of travel – when weather and operational issues mean delays and cancellations are inevitable and unavoidable – makes such a guarantee impossible."
Saying it regrets the high cancellation rates and the handling of them, Qantas denies allegations it illegally obtained a 'fee for no service' because passengers were rebooked onto other flights or offered a refund. "Qantas did not delay communicating with our passengers for commercial gain. Nor did we cancel flights to protect slots, particularly given slot waivers were in place at most airports during that time," the statement said.
The matter, the Australian Competition and Consumer Commission v. Qantas Airways Limited (case no: VID685/2023), is due for a case management hearing on November 8. Baker & McKenzie are representing the ACCC, while Johnson Winter & Slattery are representing Qantas. For each proven breach of the cited consumer laws, the maximum penalty is the greater of AUD10 million (USD6.3 million), three times the total benefits that have been obtained and are reasonably attributable, or if the total value of the benefits cannot be determined, 10% of the corporation's annual turnover.