Qantas bows to ACCC pressure on customer compensation

Qantas has succumbed to demands made by the Australian Competition and Consumer Commission that it should provide customers who were affected by last weekend’s grounding more compensation than the $350 they were already given for every day they were unable to fly.

That action comes as politicians have continued to rail against Qantas, with both the Greens and independent senator Nick Xenophon calling for an amendment to the Qantas sale act that would curtail its offshore operations.

In a statement yesterday, Qantas said it had acknowledged the ACCC’s statement and that it intends to compensate passengers for “reasonable losses incurred”.

“Qantas has always intended to ensure that disrupted customers incur no financial loss,” it said, adding that in addition, “Qantas will shortly be announcing further measures as an apology to affected customers”.

That statement came after ACCC chairman Rod Sims said Qantas should be offering customers compensation for their total loss, not just the $350 a day that has already been given.

“If you have losses over and above what has been offered by Qantas, you can contact your state or territory fair trading agency for further information on your rights,” Sims said, noting that the ACCC will continue to make enquiries of Qantas regarding offering tickets and the acceptance of payments.

The ACCC isn’t the only body interest in questioning Qantas and its chief executive, Alan Joyce, who is set to appear before the Senate tomorrow to be grilled on the grounding and its effects.

The inquiry is being set up to debate proposed amendments to legislation that would affect how Qantas operates – amendments proposed by independent senator Nick Xenophon and backed by the Greens.

Greens leader Bob Brown told the ABC Joyce would be questioned over whether anyone in Parliament – specifically Opposition leader Tony Abbott – knew about the groundings beforehand.

“The role of Senate inquiries is to try and clear the air on matters like that,” he said.

The amendments put forward would make sure the company keeps its aircraft operations in Australia, including training and maintenance, while a separate provision would see Qantas pay offshore flight and cabin crew the same as employees are paid in Australia.

The inquiry comes as transport workers argue Qantas is breaching a part of the Qantas sale act that ensures the company’s main operations stay in Australia. Submissions made by the Transport Workers Union argue the company needs to be stopped, but Qantas itself argues that it can “exercise its right” to expand.

Virgin also wrote in its submission that it would oppose changes to the Air Navigation and Civil Aviation Bill.

Other representatives from the airline industry, including union officials, are expected to appear before the inquiry tomorrow.