Qantas's compensation for fleet grounding not enough, says ACCC

THE competition watchdog has told Qantas its compensation to passengers following the airline's shutdown does not go far enough.

qantas grounds fleet

THE competition watchdog has warned Qantas that its compensation to passengers following the airline's fleet shutdown does not go far enough.

The Australian Competition and Consumer Commission has also told Qantas it expects it to reimburse passengers for all reasonable costs.

Tens of thousands of Qantas passengers across Australia and the world were stranded when the airline grounded its fleet on Saturday due to industrial action.

Flights have since returned to normal following an order by the industrial umpire but many travellers must now seek compensation for the disruption they suffered.

The airline has so far offered offered consumers refunds, the opportunity to rebook flights, and compensation for expenses incurred by certain travellers for flights until midnight tonight.

This includes payments of up to $350 for accommodation and expenses as well as the difference between the original Qantas fare and the cost of booking alternative tickets.

But the ACCC said today it had advised Qantas that it expected it to go further in responding to travellers' claims.

The ACCC said the airline had indicated it will deal with all claims made outside the offer on a case by case basis.

“While Qantas's current position addresses some of the ACCC's concerns, it does not go far enough,” ACCC chairman Rod Sims said in a statement. “These circumstances are extraordinary and there have been a huge number of passengers significantly 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.”

Mr Sims said the ACCC has been in consultation with the state and territory fair trading agencies and passengers could contact the agencies for further information on their rights.

The consumer watchdog has asked Qantas for a report on claims made and redress provided in the next month.

It is also looking at the circumstances surrounding the offering of tickets and acceptance of payments following the decision to ground the fleet.