Qantas Airways (QAN.AX) announced on Monday that it has reached a settlement agreement with Australia’s competition regulator regarding a flight cancellation case.
Under the terms of the agreement, Qantas may be required to pay a civil penalty of A$100 million ($66 million), pending approval by the Federal Court of Australia.
The legal action stems from a lawsuit filed by the Australian Competition and Consumer Commission (ACCC) in August. The ACCC alleged that Qantas sold tickets for numerous flights despite knowing they had been cancelled, potentially exposing the airline to significant fines.
As part of the settlement, Qantas will start a projected A$20 million remediation program for passengers impacted by flight cancellations, with each impacted customer getting payments from A$225 to A$450, the airline said.
Qantas stated that it is committed to complying with consumer protection laws and ensuring transparency for its customers.
“Today represents another important step forward as we work towards restoring confidence in the national carrier,” Qantas Group CEO Vanessa Hudson said.
The airline emphasized its ongoing efforts to address the issues raised by the ACCC and expressed its intent to cooperate fully with the regulatory process.
