The ACCC in Australia has launched action in the Federal Court of Australia alleging Qantas Airways (QAN) 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 ACCC alleges that for more than 8,000 flights scheduled to depart between May and July 2022, Qantas kept selling tickets on its website for an average of more than two weeks, and in some cases for up to 47 days, after the cancellation of the flights.
It is also alleged that, for more than 10,000 flights scheduled to depart in May to July 2022, Qantas did not notify existing ticketholders that their flights had been cancelled for an average of about 18 days, and in some cases for up to 48 days. The ACCC alleges that Qantas did not update its “Manage Booking” web page for ticketholders to reflect the cancellation.
This conduct affected a substantial proportion of flights cancelled by Qantas between May to July 2022. The ACCC alleges that for about 70 per cent of cancelled flights, Qantas either continued to sell tickets for the flight on its website for two days or more, or delayed informing existing ticketholders that their flight was cancelled for two days or more, or both.
“The ACCC has conducted a detailed investigation into Qantas’ flight cancellation practices. As a result, we have commenced these proceedings alleging that Qantas continued selling tickets for thousands of cancelled flights, likely affecting the travel plans of tens of thousands of people,” ACCC Chair Gina Cass-Gottlieb said. “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. There are vast distances between Australia’s major cities. Reliable air travel is essential for many consumers in Australia who are seeking to visit loved ones, take holidays, grow their businesses or connect with colleagues. Cancelled flights can result in significant financial, logistical and emotional impacts for consumers.”
The ACCC’s investigation included engagement with impacted consumers and the serving of compulsory information notices on Qantas. The investigation, which included detailed data analysis by ACCC specialist data analysts, identified that Qantas cancelled almost 1 in 4 flights in the period from May to July 2022, with about 15,000 out of 66,000 domestic and international flights from airports in all states and mainland territories in Qantas’ published schedule being cancelled. These proceedings relate to more than 10,000 of those cancelled flights.
As an example of the conduct, ticketholders scheduled to fly on Qantas flight QF93 from Melbourne to Los Angeles on 6 May 2022 were first notified of the cancellation on 4 May, two days before the scheduled departure and four days after Qantas had cancelled the flight.
One consumer was provided with a replacement flight a day before their original departure date, which was communicated only by the Qantas app. As a result, the consumer had to change connecting flights and had a 15-hour layover in Los Angeles, which had a significant impact on the consumer and left them $600 out of pocket.
In another example, Qantas sold 21 tickets for QF73 from Sydney to San Francisco scheduled to depart on 29 July 2022 after it had cancelled the flight, with the last ticket being sold 40 days after cancellation.
Airlines may cancel flights in the short term due to a range of unforeseeable reasons including bad weather, aircraft defects and delays from previous flights. Flight cancellation can also happen due to a range of factors that are within the control of an airline.
“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,” Cass-Gottlieb said. “However, this case does not involve any alleged breach in relation to the actual cancellation of flights, but rather relates to Qantas’ conduct after it had cancelled the flights.”
The ACCC is seeking orders including penalties, injunctions, declarations, and costs.
Some examples of flights allegedly affected
- Qantas flight QF93 was scheduled to depart from Melbourne to Los Angeles on 6 May 2022. On 28 April 2022, Qantas made the decision to cancel the flight. Despite this, Qantas did not remove the flight from sale until 2 May 2022, and did not inform existing ticketholders 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 made the decision to cancel the flight. Despite this, Qantas did not remove the flight from sale until 27 March 2022, and did not inform existing ticketholders 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 made the decision to cancel the flight. Despite this, Qantas did not remove the flight from sale until 27 March 2022, and did not inform existing ticketholders of the cancellation until 28 March 2022.
- Qantas flight QF486 was scheduled to depart from Melbourne to Sydney on 1 May 2022. On 18 February 2022, Qantas made the decision to cancel the flight. Despite this, Qantas did not remove the flight from sale until 15 March 2022, and did not inform existing ticketholders 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 made the decision to cancel the flight. Despite this, Qantas did not remove the flight from sale until 15 March 2022, and did not inform existing ticketholders 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 made the decision to cancel the flight. Despite this, Qantas did not remove the flight from sale until 26 June 2022, and did not inform existing ticketholders 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 made the decision to cancel the flight. Despite this, Qantas did not remove the flight from sale until 19 June 2022, and did not inform existing ticketholders 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 made the decision to cancel the flight. Despite this, Qantas did not remove the flight from sale until 30 May 2022, and did not inform existing ticketholders of the cancellation until 31 May 2022.
- Qantas flight QF45 was scheduled to depart from Melbourne to Denpasar on 1 May 2022. On 8 February 2022, Qantas made the decision to cancel the flight. Despite this, Qantas did not remove the flight from sale until 24 February 2022, and did not inform existing ticketholders of the cancellation until 23 March 2022.
- Qantas flight QF649 was scheduled to depart from Sydney to Perth on 30 July 2022. On 18 February 2022, Qantas made the decision to cancel the flight. Despite this, Qantas did not remove the flight from sale until 7 March 2022, and did not inform existing ticketholders of the cancellation until 8 March 2022.
Qantas is Australia’s largest domestic airline operator. It is a publicly listed company which operates domestic and international passenger flights under its mainline brand, Qantas, and through its subsidiary Jetstar. It offers flights for sale through direct channels, such as its website and app, and indirect channels, such as travel agents and third-party online booking websites.
Qantas said in a statement that it “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.”
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