Proceedings against airline ‘on behalf of hundreds of thousands’ of customers aims to force refunds for flight credits and compensation due to lost interest
Qantas is facing a class action lawsuit over its refund policy for flights cancelled due to the pandemic, with lawyers alleging the airline’s use of travel credits allowed them to treat their customers’ money as more than “$1bn in interest-free loans”.
The class action also alleges Qantas has been “unjustly enriched by holding a very significant quantum of customer funds that it ought to have refunded” and that Qantas engaged in “a system or pattern of unconscionable conduct” in contravention of Australian consumer law.
Paull said while some of its customers suffered financially during the pandemic, Qantas “enjoyed the significant financial benefits of holding billions of dollars in customer payments including interest and reduced borrowing costs”.
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