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Qantas admits reputation has already been 'hit hard on several fronts'

In a statement released to the ASX today, Qantas said it will continue to review the allegations made by the ACCC and 'will have more to say once it has had that opportunity.'

In a statement released to the ASX today, Qantas said it will continue to review the allegations made by the ACCC and ‘will have more to say once it has had that opportunity.’

The lengthy statement was released after a week of controversy and backlash for the Qantas Group, including industry heavyweights calling on the Australian Government to clear the way for more Qatar Airways flights to Australia.

Outlining the impact of the ACCC’s allegations and ensuing backlash on multiple fronts, the Qantas Group statement read, “Understandably, these allegations have caused significant concern among our customers, our people and the general community.

“We want to address those allegations as best we can without cutting across the legal process we are now involved in, which follows an ACCC investigation with which we fully co-operated.

Qantas A330

“The period of time that the ACCC’s claims relate to, in mid-2022, was one of well-publicised upheaval and uncertainty across the aviation industry as Qantas struggled to restart post-COVID.

“We openly acknowledge that our service standards fell well short, and we sincerely apologise. We have worked hard to fix them since, and that work continues.

“Some commentary has suggested that Qantas was engaged in charging a ‘fee for no service’ due to cancelled flights over this period. Our longstanding practice is that when a flight is cancelled, customers are offered an alternative flight as close as possible to their original departure time or a refund.

“The ACCC’s allegations come at a time when Qantas’ reputation has already been hit hard on several fronts. We want the community to know that we hear and understand their disappointment. We know that the only way to fix it is by delivering consistently.

“We know it will take time to repair. And we are absolutely determined to do that.”

Closing the statement by sending a message to its workforce, Qantas said, “To the 25,000 people who make up the Qantas Group, we say thank you. Every day, you are focused on carrying customers safely to their destination, and your professionalism in doing so is superb.”

The scrutiny on the Qantas Group had also intensified after a week where the national carrier posted a record $2.5 billion profit before tax, scrapped COVID travel credit expiry dates and faced an ACCC lawsuit for selling cancelled flights.

The Group also said it would remove the expiry date on COVID travel credits that were due to run out at the end of this year.

Following this decision, Qantas customers with COVID credits can request a cash refund, and Jetstar customers can use their COVID vouchers for flights indefinitely.

Finally, it was revealed that CEO Alan Joyce, who steps down in November 2023 after a 15-year stint, will receive $125 million plus other bonuses.

Joyce will be replaced as CEO by current Chief Financial Officer Vanessa Hudson.