The Times Australia
The Times World News

.
The Times Real Estate

.

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

  • Written by Volodymyr Bilotkach, Associate Professor, Purdue University

Fining Qantas A$600 million[1] if it is found to have knowingly sold so-called “ghost flights” would be fair, according to the Australian Competition and Consumer Commission.

The commission this week launched action[2] 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.

The regulator’s charges against the airline, which last month reported a record $2.47 billion profit[3], have precipitated the early exit of longtime chief executive Alan Joyce, who quit this week two months ahead of schedule. This court challenge will certainly add to the workload of his successor, Vanessa Hudson.

Read more: Qantas chief Alan Joyce quits early, amid customer fury at the airline[4]

Qantas has acknowledged[5] that service standards might have slipped as the airline was struggling to recover after the pandemic.

The nature of the oversights that led to the airline’s errors will determine the airline’s liability – both to the consumer regulator and to individual claims for compensation.

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

Incoming Qantas chief executive Vanessa Hudson (left), and Qantas CEO Alan Joyce speak to media during a press conference at the Qantas Campus in Sydney, Thursday, August 24, 2023.
Incoming Qantas chief executive Vanessa Hudson and her predecessor Alan Joyce speak to media on Thursday, August 24, 2023. Bianca De Marchi/AAP

How did Qantas get in this mess?

The short answer, most likely, is that the carrier did not handle flight cancellations promptly due to the sheer volume of work and labour shortages as it sought to resume operations following the end of pandemic restrictions.

The consumer regulator’s allegations relate specifically to May and June 2022. Australia lifted many of its COVID-related travel restrictions in March[6], and travellers entering the country after July 6[7] were not required to show proof of vaccination. The airline was trying to bring its planes back into service and hire or retrain its employees, and generally was struggling to get back to more or less normal operations.

In its statement, the competition watchdog noted the carrier cancelled nearly one in four flights scheduled during that period; and for two out of three cancelled flights it either continued selling tickets or failed to inform the passengers –sometimes for extended periods of time – or both.

Flight cancellations are a normal part of an airline’s operations. However, the “usual” cancellation rate is less than 2%[8], 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. This is something I have never heard of.

Nearly one in four Qantas flights in May and June of 2022 were cancelled.
Nearly one in four Qantas flights in May and June of 2022 were cancelled. Joel Carrett/AAP

One also suspects the airline has had enough “practice” with schedule adjustment during the pandemic to know better. There are clearly gaps in the carrier’s management. It has lessons to learn from this debacle.

Read more: Qantas can't charge these prices forever: the challenge ahead for new chief Vanessa Hudson[9]

What is Qantas’ liability?

The question of the extent of the airline’s liability is not straightforward. Obviously, a business willingly selling a product or service it has no intention to deliver is at fault, and has to face consequences.

At the same time, a business selling a product that has defects it is unaware of, despite doing its best to prevent such defects from occurring, will face certain costs (such as those associated with a product recall) but may be spared sanctions.

The onus will be on Qantas to demonstrate it made an honest mistake rather than a lapse of judgement. But considering the scale of the problem, the airline faces a very difficult task here.

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.

Timing will be of the essence here. If a passenger incurred expenses assuming the flight was operating when it had already been cancelled, such as making a non-refundable hotel reservation, there is a case to request compensation for such expenses.

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.

Currently, the consumer is entitled to replacement or refund[10] if an airline does not provide services “in a reasonable time” - that is, in the event of a lengthy delay or a flight cancellation. However, the definition of “reasonable time” and the specifics of the compensation policies are left to the airlines.

Read more: Will it be greener pastures for Qantas as Alan Joyce takes off?[11]

In other parts of the world, actions have been or are being taken to strengthen customer protection. For instance, in the European Union[12], lengthy delays that are the airlines’ fault lead to the carriers paying out cash compensation as well as the cost of accommodation and meals.

Similar regulations were proposed in the United States[13] earlier this year.

Perhaps, if stronger consumer protection rules had been in place in Australia in 2022, Qantas would have managed the aftermath of flight cancellations more diligently.

Read more https://theconversation.com/booking-customers-on-flights-that-were-cancelled-how-could-qantas-do-that-212793

The Times Features

5 Reasons Your Finances Deserve a Summer Refresh

Most of you are ready to change your clothing, tidy the lawn, and schedule a well-earned vacation as the days become longer and the temps climb. Summer, meanwhile, is also the id...

Optimal Locations for Smoke Alarms in Australian Homes

Smoke alarms play a crucial role in ensuring the safety of homes across Australia. They are essential in alerting occupants at the earliest signs of a fire, allowing enough time ...

10 Smart Ways Australians Can Slash Their Electricity Bills in 2025

Electricity prices in Australia continue to rise, but that does not mean you have to sacrifice your lifestyle to save money. By making a few smart changes, you can lower your pow...

Trusted Healthcare Construction Company for Modern Facilities

Achieving quality, safety, and innovative medical facilities is challenging in an ever-changing healthcare world without collaboration with a trusted healthcare construction comp...

How to Treat Hair Loss Without a Hair Transplant

Understanding Hair Loss Hair loss can significantly affect individuals, both physically and emotionally. Identifying the causes and types can help address the issue more effecti...

How to Find a Trustworthy Professional for Your Plumbing Needs

Nowra is an idyllic locality often referred to as the city of the Shoalhaven City Council in the South Coast region of New South Wales, Australia. This picturesque suburb feature...

Times Magazine

The Essential Guide to Transforming Office Spaces for Maximum Efficiency

Why Office Fitouts MatterA well-designed office can make all the difference in productivity, employee satisfaction, and client impressions. Businesses of all sizes are investing in updated office spaces to create environments that foster collaborat...

The A/B Testing Revolution: How AI Optimized Landing Pages Without Human Input

A/B testing was always integral to the web-based marketing world. Was there a button that converted better? Marketing could pit one against the other and see which option worked better. This was always through human observation, and over time, as d...

Using Countdown Timers in Email: Do They Really Increase Conversions?

In a world that's always on, where marketers are attempting to entice a subscriber and get them to convert on the same screen with one email, the power of urgency is sometimes the essential element needed. One of the most popular ways to create urg...

Types of Software Consultants

In today's technology-driven world, businesses often seek the expertise of software consultants to navigate complex software needs. There are several types of software consultants, including solution architects, project managers, and user experienc...

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

LayBy Shopping