Qantas pleads guilty over misleading fare ads

[Yada Yada]

Qantas pleads guilty over misleading fare ads
By Lucy Bennett
October 10, 2006

QANTAS has been fined $NZ380,000 ($336,000) after pleading guilty to using misleading advertising for its airfares.

The New Zealand Commerce Commission said today that Qantas (qan.ASX:Quote,News) had pleaded guilty in Auckland District Court to 122 breaches of New Zealand's Fair Trading Act.

The airline was ordered to pay $NZ380,000 in fines and $NZ15,860 costs. Another 277 charges were withdrawn. Most of the breaches related to advertisements in major New Zealand newspapers.

Qantas was the second major airline to plead guilty to misleading the public in its advertisements.

Air New Zealand was fined $600,000 for similar behaviour in June, the commission said.


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I guess the fine is peanuts to a company the size of QF.

 

[oz_mark]

I guess the fine is peanuts to a company the size of QF.

After the previous Air NZ fine, it was probably just a matter of time before it caught up with Qantas. Not surprised at all by this. I did like the comment about fuel being a normal operating expense

 

[JohnK]

I did like the comment about fuel being a normal operating expense

I think the airlines enjoy telling us that fuel is a normal operating expense then adding on a fuel surcharge knowing we cannot do anything about it.

 

[Kiwi Flyer]

After the previous Air NZ fine, it was probably just a matter of time before it caught up with Qantas. Not surprised at all by this. I did like the comment about fuel being a normal operating expense

I'm surprised it took as long for the commerce commission to catch up with QF as it did.

 

[serfty]

I'm surprised it took as long for the commerce commission to catch up with QF as it did.

IIRC, ANZ fought the charges and the Judiciary process became somewhat of a drawnout test case.

Once ANZ failed, it was only a matter of time before Qantas plead Guilty (i.e. Did not fight the charges)

 

[Kiwi Flyer]

IIRC that was late last year!

 

[serfty]

IIRC that was late last year!

Yep, I guess it's taken QF that long to be told be it's legal staff they were stuffed! (maybe they got a second or even third opinion)