QANTAS: Regulator wants HUGE fine if ‘ghost flights’ sales case proved

Qantas and Alan Joyce can just not catch a break at the moment. But if the Australian Competition and Consumer Commission (ACCC) is correct that Qantas kept selling already cancelled flights, then neither should they. Some opinion makers are already calling for CEO Alan Joyce to resign now, to prevent further brand damage. They don’t want him to wait until is previously announced termination date in November.

The regulator wants fine of AU$250 million+

The largest fine in consumer law history in Australia was issued to Volkswagen in 2019 for deceiving customers over diesel emissions. Gina Cass-Gottlieb, chair of the Australian Competition and Consumer Commission (ACCC), wants a fine significantly larger, at least double that sum at AU$250 million. The Chair wants such a penalty to scare other companies, that had stopped fearing such fines.

Record complaints tipped off the ACCC

Qantas is currently the most complained about company on the ACCC’s register. It commenced its investigation when inundated by 1,300 complaints about cancelled flights. You can read some of the examples the ACCC cites in our earlier story covering the charges.

At up to AU$10 million fine per instance, or a percentage of turnover, AU$250 might be at the lower end of the spectrum.

“The ACCC is on a path of wanting to substantially increase the penalties that large corporations, in relation to serious conduct, pay for failing consumers. And so this is going to be an important test for us.”

Gina Cass-Gottlieb, chair of the Australian Competition and Consumer Commission (ACCC)

2PAXfly Takeout

The behaviour of Qantas, if proven, is truly egregious. In the Australian press, it has been likened to the case of ‘fees for no service’ finding in the Banking Royal Commission.

The cynicism of this action by Qantas is breathtaking. I think the book should be thrown.

On the subject of Alan Joyce, it is more difficult. Part of me says make him stay and wade through the negativity of this period of the company’s history. If he should leave early, then so should the chairman of Qantas, Richard Goyder for allowing his executives to implement such a consumer deceiving scheme.