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Qantas to compensate “all reasonable losses”

Qantas to compensate “all reasonable losses”

Qantas (ASX:QAN) has agreed it should be liable for “all reasonable losses” incurred by customers as a result of the recent fleet grounding, in response to pressure from the ACCC.

The regulator is also grilling Qantas to determine why tickets were sold after the decision to ground the fleet.

The ACCC today said Qantas had not gone far enough with its compensation plans – which currently include refunding or offering to rebook tickets, and offering compensation for certain travel expenses.

While Qantas had had informed the ACCC it plans to address compensation claims made outside the offer on a case by case basis, the body was not satisfied.

According to chairman Rod Simms, due to the “huge number” of passengers affected, “it is squarely in the airline’s camp to make good.

“If you have incurred additional expenses as a result of the grounding the ACCC is of the view that QANTAS should compensate you for all your reasonable losses,” he said.

Responding in a market statement, Qantas said it accepts and agrees to this request. “Qantas has always intended to ensure that disrupted customers ensure no financial loss,” the missive states.

The ACCC has meanwhile told Qantas to prepare a report on claims made and compensation paid in the next month, and said it was continuing to ask questions concerning the circumstances surrounding the offering of tickets after the airline had decided to ground its planes.

The airline has estimated that around 98,000 customers were disrupted by the grounding. Qantas resumed full service on Monday following a tribunal order.

QAN shares fell 3.37% on Wednesday to $1.575.

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Tags compensationRod SimsQantasacccindustrial actionairlinesASX:QAN

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