QANTAS: Scraps refund expiry date. Qantas sued for selling cancelled flights by regulator

OK, we might have given Qantas the benefit of the doubt at the Cost of Living Senate enquiry, where senators roundly attacked CEO Alan Joyce on Qantas pricing, his pay packet, and the airline’s diminishing service and massively increased fares. But then, today, It looks like they were not dealing honestly with their customers if the alleged behaviour is correct.

“We allege that Qantas made many of these cancellations for reasons that were within its control, such as network optimisation including in response to shifts in consumer demand, route withdrawals or retention of take-off and landing slots at certain airports,” Ms Cass-Gottlieb said.

ACCC Chair Gina Cass-Gottlieb

The Australian Competition and Consumer Commission (ACCC) has expressed ‘strong concerns’ about the December expiry date for the refunds that Qantas has set. Today (Thursday, 31 August), the federal consumer watchdog has started a Federal Court case against the airline, alleging that it falsely advertised more than 8,000 flights it had already cancelled.

Eligibility for Refunds detailed

The Sydney Morning Herald is reporting unconfirmed reports that if you were a Qantas customer, and your flight was cancelled by the airline because of COVID-19 lockdowns up to October 2021, you may be able to request a refund.

ACCC says Qantas delayed telling ticket holders about cancelled flights

The ACCC alleges that Qantas kept selling tickets via its website, on average, for more than two weeks, and, in some cases, up to 47 days after the flights were cancelled. The flights in question were scheduled between May and July 2022.

Further, Qantas delayed telling customers who already held tickets for between 18 and 48 days that their flights had been cancelled. It’s alleged that this period involved 10,000 scheduled flights, or 70% of total flights cancelled in those months.

‘“We allege that Qantas’ conduct in continuing to sell tickets to cancelled flights, and not updating ticketholders about cancelled flights, left customers with less time to make alternative arrangements and may have led to them paying higher prices to fly at a particular time not knowing that flight had already been cancelled.”’

ACCC, Media Statement

Examples from the ACCC statement

The ACCC sites several examples to give you an idea of the corporate deceit Qantas indulged in

International

• Qantas flight QF93 was scheduled to depart from Melbourne to Los Angeles on 6 May 2022. On 28 April 2022, Qantas decided to cancel the flight. Qantas did not remove the flight from sale until 2 May 2022 and did not inform existing ticket holders of the cancellation until 4 May 2022 (two days before the flight).
• Qantas flight QF81 was scheduled to depart from Sydney to Singapore on 4 June 2022. On 8 February 2022, Qantas decided to cancel the flight. Qantas did not remove the flight from sale until 27 March 2022 and did not inform existing ticket holders of the cancellation until 28 March 2022.
• Qantas flight QF63 was scheduled to depart from Sydney to Johannesburg on 31 July 2022. On 8 February 2022, Qantas decided to cancel the flight. Qantas did not remove the flight from sale until 27 March 2022 and did not inform existing ticket holders of the cancellation until 28 March 2022.
• Qantas flight QF45 was scheduled to depart from Melbourne to Denpasar on 1 May 2022. On 8 February 2022, Qantas decided to cancel the flight. Qantas did not remove the flight from sale until 24 February 2022 and did not inform existing ticket holders of the cancellation until 23 March 2022.

Domestic

• Qantas flight QF486 was scheduled to depart from Melbourne to Sydney on 1 May 2022. On 18 February 2022, Qantas decided to cancel the flight. Qantas did not remove the flight from sale until 15 March 2022 and did not inform existing ticket holders of the cancellation until 16 March 2022.
• Qantas flight QF1785 was scheduled to depart from Gold Coast to Sydney on 1 May 2022. On 17 February 2022, Qantas decided to cancel the flight. Qantas did not remove the flight from sale until 15 March 2022 and did not inform existing ticket holders of the cancellation until 16 March 2022.
• Qantas flight QF696 was scheduled to depart from Adelaide to Melbourne on 23 July 2022. On 18 June 2022, Qantas decided to cancel the flight. Qantas did not remove the flight from sale until 26 June 2022 and did not inform existing ticket holders of the cancellation until 27 June 2022.
• Qantas flight QF1764 was scheduled to depart from Canberra to Gold Coast on 27 June 2022. On 16 June 2022, Qantas decided to cancel the flight. Qantas did not remove the flight from sale until 19 June 2022 and did not inform existing ticket holders of the cancellation until 20 June 2022.
• Qantas flight QF513 was scheduled to depart from Brisbane to Sydney on 8 June 2022. On 27 May 2022, Qantas decided to cancel the flight. Qantas did not remove the flight from sale until 30 May 2022 and did not inform existing ticket holders of the cancellation until 31 May 2022.
• Qantas flight QF649 was scheduled to depart from Sydney to Perth on 30 July 2022. On 18 February 2022, Qantas decided to cancel the flight. Qantas did not remove the flight from sale until 7 March 2022 and did not inform ticket holders until 8 March 2022.

ACCC consumer penalties

If these examples are found to breach consumer law, and they occurred before 9 November 2022, then the penalty for a corporation is either AU$10 Million, or three times the benefit obtained, or 10% of the corporation’s turnover if a value cannot be determined – whichever is the greater. WOW!

The ACCC law suit

If you are an existing, or budding lawyer, here is a link to the PDF of the ACCC statement giving the legal grounds of the case.

Qantas Statement in Response to ACCC Action

Qantas takes these allegations by the ACCC seriously.

We have a longstanding approach to managing cancellations for flights, with a focus on providing customers with rebooking options or refunds. It’s a process that is consistent with common practice at many other airlines.

It’s important to note that the period examined by the ACCC between May and July 2022 was a time of unprecedented upheaval for the entire airline industry. All airlines were experiencing well-publicised issues from a very challenging restart, with ongoing border uncertainty, industry wide staff shortages and fleet availability causing a lot of disruption.

We will examine the details of the ACCC’s allegations and respond to them in full in court.

Qantas Newsroom

2PAXfly Takeout

OMG! Just when I was beginning to feel sorry for Alan Joyce when he was under attack at the Senate enquiry, I hear this. It just confirms all the suspicions of every Qantas customer. Bad treatment of customers is actually a Qantas corporate value.

I’m rendered a bit speechless by this allegation. I question whether I should continue to patronise a company that appears to treat its customers with such contempt.

If true, this could really tarnish the legacy of Alan Joyce