The ACCC alleges that Qantas sold tickets on its website for 8,000 cancelled flights.
👉 Background: Qantas has been under a LOT of criticism over the past couple of weeks.
👉 What happened: Now, the ACCC, which is the consumer watchdog, alleges that Qantas sold tickets on its website for 8,000 flights that were scheduled to depart between May and July 2022 - but these flights were already cancelled!
👉 What else: Not only did this affect the travel plans of tens of thousands of people.. but also led to more than $470 million in “flight credits” - which Qantas was planning to expire by the end of the year. Thankfully, this has now been reversed..
💡 When companies issue gift cards and vouchers, it's like they're betting on human forgetfulness - because they know a good chunk won't get redeemed.
💡In fact, it’s estimated than 1 in 7 gift cards or credits are unused and this amounts to hundreds of millions of dollars per year in free revenue for companies.
💡This means that the money from the gift card or voucher often gets pocketed by the issuer. So you can start to understand where Qantas' enormous profit came from. But now, they're facing the music.
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