Qantas Agrees To Pay A Fine Of IDR 1.05 Trillion For A Ghost Flight Scandal

Airplane (photo: dock. Antara)

Australian airline Qantas stated that it agreed to pay a fine of US$66 million or equivalent to Rp. 1.05 trillion (assuming an exchange rate of Rp. 16,023 per US dollar).

The fine handed down to Qantas follows allegations that the airline sold tickets for canceled flights or "ghost flights".

Quoted from Channel News Asia, the payment of a fine of US$66 million or Rp1.05 trillion imposed on Qantas had to wait for approval from the court.

Australia's business competition watchdog said Qantas had admitted that they were misleading consumers by advertising seats on tens of thousands of flights, even though the flight was canceled.

Qantas will also provide compensation of 13 million US dollars or equivalent to Rp208 billion (assuming an exchange rate of Rp. 16,023 per US dollar) to 86,000 prospective passengers affected by the cancellation and failure of rescheduling.

Qantas' actions are very bad and unacceptable. Many consumers are making plans for a vacation, business, and travel after ordering canceled ghost flights, "said the chairman of the Australian Competition and Consumer Commission, Gina Cass-Gottlieb, quoted from Channel News Asia, Monday, May 6.

Meanwhile, Qantas said in some cases, customers ordered flights that had been canceled two or more days earlier.

Qantas chief executive Vanessa Hudson said the airline was disappointing customers and did not meet company standards.

"We know many of our customers were affected by our failure to provide a timely cancellation notice and we sincerely apologize," he said in a statement.

The national airline Qantas, long dubbed the Spirit of Australia, has carried out a mission to improve its reputation.

The airline is also facing a bad reaction from consumers triggered by soaring ticket prices, careless service claims, and the dismissal of 1,700 field staff during the COVID-19 pandemic.

Previously, Qantas defended the sale of seats on canceled flights. They argue that instead of buying tickets for certain seats, customers buy a set of rights and promise that airlines will do their best to deliver consumers to where they want on time.

For your information, Qantas recorded an annual profit of US$1.1 billion last year, and limited massive financial recovery after years of travel turbulence due to the Covid-19 pandemic.

Meanwhile, veteran chief executive Alan Joyce announced early retirement amid a series of criticisms in September last year.