Booking customers on flights that were cancelled – how could Qantas do that?

• The commission this week launched action in the Federal Court alleging Qantas engaged in false, misleading or deceptive conduct by selling tickets on flights that had already been cancelled, and not informing passengers of cancellations in a timely manner.
• Read more:
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  Qantas has acknowledged that service standards might have slipped as the airline was struggling to recover after the pandemic.

• Importantly, the case also points to the need for greater regulatory protection of the airline’s passengers, in line with other jurisdictions.

How did Qantas get in this mess?

• However, the “usual” cancellation rate is less than 2%, less than a tenth of what Qantas experienced in May and June 2022.
• What is unusual is that Qantas did not immediately remove cancelled flights from its booking system.
• Read more:
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What is Qantas’ liability?

• Obviously, a business willingly selling a product or service it has no intention to deliver is at fault, and has to face consequences.
• The onus will be on Qantas to demonstrate it made an honest mistake rather than a lapse of judgement.

Individual claims pending

• As well as a potential fine, Qantas should brace for a flood of claims from individual passengers who bought a ticket for an already cancelled flight or were not informed in a timely manner.
• Otherwise, the standard policy will apply: the airline is not usually responsible for any non-refundable and uninsured expenses a passenger incurs prior to the flight cancellation.

Closing the regulatory gap

• The regulator should, however, also take a closer look at the existing air passenger rights in Australia.
• However, the definition of “reasonable time” and the specifics of the compensation policies are left to the airlines.
• In other parts of the world, actions have been or are being taken to strengthen customer protection.