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A government authority has warned politicians and their staffers not to take compensation payments for cancelled Qantas “ghost flights”.
In an email seen by The Guardian, the Independent Parliamentary Expenses Authority (IPEA) noted that, while technically eligible to claim remediation for taxpayer-funded bookings under the Flying Kangaroo’s deal with the ACCC, affected politicos and their staff should pass up the money.
“As these funds will be paid to individuals, IPEA reminds all parliamentarians and staff that they should not obtain a personal benefit where the travel was funded by the commonwealth. In these circumstances, it is not appropriate for parliamentarians and staff to accept this offer of payment,” the email read.
“As part of the negotiated agreement with the ACCC, Qantas will donate any unclaimed funding from the $20 million remediation program to an approved charity. This is the appropriate outcome for any remediation payments owed to the commonwealth.”
Announced in May, the agreement with the ACCC saw the Flying Kangaroo concede that it had sold tickets to thousands of flights it had already cancelled between 21 May 2021 and 26 August 2023 and accept a $120 million penalty.
However, in a significant win, the Flying Kangaroo said the ACCC was no longer proceeding with claims the airline received payment for flights it had no intention of providing – essentially removing the suggestion it deliberately misled consumers.
The consumer watchdog announced in August last year it was taking Qantas to the federal court over the matter, which many believe contributed to the early exits of both CEO Alan Joyce and chairman Richard Goyder.
The new deal saw both parties ask the Federal Court to impose a penalty of $100 million on Qantas for breaching the Australian Consumer Law.
“Qantas has also agreed in a court-enforceable undertaking to pay about $20 million to more than 86,000 customers who were sold tickets on flights that Qantas had already decided to cancel, or in some cases who were re-accommodated on these flights after their original flights were cancelled,” said the ACCC.
“Qantas will pay $225 to domestic ticketholders and $450 to international ticketholders. These payments are on top of any remedies these consumers already received from Qantas, such as alternative flights or refunds.”
The claims originally stated that between 21 May 2021 and 7 July 2022, Qantas advertised tickets for more than 8,000 cancelled flights.
It was also alleged that, for more than 10,000 flights scheduled to depart in May to July 2022, Qantas did not promptly notify existing ticketholders that their flights had been cancelled.
