Qantas Airways faces A$100 million court penalty for flight cancellations

AUSTRALIAN flagship airline Qantas Airways said on Monday it reached a settlement agreement with the country’s competition regulator under which it may be obliged to pay A$100 million (S$89 million) civil penalty in a flight cancellation case.

The penalty would be subject to the approval of Federal Court of Australia, it said in a statement.

Qantas was sued in August by the Australian Competition and Consumer Commission (ACCC), which accused it of selling tickets to thousands of flights after they were cancelled, putting the airline at risk of huge fines.

As part of the settlement, Qantas will start a projected A$20 million remediation programme for passengers impacted by flight cancellations, with each impacted customer getting payments from A$225 to A$450, the airline said.

“Today represents another important step forward as we work towards restoring confidence in the national carrier,” Qantas Group CEO Vanessa Hudson said. AFP