SYDNEY – In a scandal that's sent shockwaves through the aviation industry, Qantas Airways is facing serious backlash after court documents unveiled that nearly one million customers were misled into booking non-existent flights. The airline's disturbing "ghost-flight" debacle has prompted legal action and hefty financial penalties.

In May, Qantas settled a lawsuit amounting to A$120 million (S$106 million) in fines and compensations due to its deceptive practices. The Australian carrier improperly sold tickets on flights that had already been cancelled, without informing passengers that they were actually booked on these phantom services.

The scandal led to the early resignation of CEO Alan Joyce later in 2023, raising questions about how much the airline truly understood regarding its ticketing failures. The Australian Competition & Consumer Commission (ACCC) brought this case forward, advocating for a record penalty exceeding A$250 million, highlighting the serious nature of the misconduct.

A statement released on September 26 by the Federal Court of Australia disclosed that senior management at Qantas was aware of the severity of the situation yet failed to act responsibly. However, in a convoluted system, no single individual had a complete understanding of the overall issue. "Qantas was aware of the way in which its system operated," stated the filing, confirming that consumers suffered significant harm due to the airline's violations of conduct.

While Qantas has not disclosed the specific identities of the implicated managers, current CEO Vanessa Hudson, who stepped into the role in September 2023 after serving as the group chief financial officer, is under scrutiny. Queries regarding her involvement have not been officially addressed by Qantas.

Interestingly, the court documents revealed that Qantas could have easily removed cancelled flights from sale but chose not to. Since the scandal's discovery, the airline has taken steps to update its systems to prevent such occurrences from happening again.

In a shocking statistic, between May 2022 and May 2024, Qantas continued to sell tickets for a staggering 71,000 flights that it had already decided to cancel. Approximately 87,000 passengers fell victim to these non-existent departures or were inconveniently rebooked onto them. Alarmingly, around 884,000 customers were not promptly informed that they were slated to travel on these bogus flights.

On average, Qantas took about 11 days to notify passengers of flight cancellations, matching the same duration that it continued selling tickets for those cancelled flights. With so many customers impacted, the airline is now facing a crisis of confidence that could take years to rebuild.

The fallout from this scandal raises critical questions about consumer trust and the responsibilities of airlines toward their passengers. As Qantas works to resolve these issues, the aviation industry will be watching closely to see how the carrier manages the aftermath of this unprecedented situation. Stay tuned as this story unfolds!