Qantas customers are being warned not to ignore emails and text messages offering access to a multimillion-dollar payout, even if they appear to be a scam.
More than 1 million customers have begun receiving emails and text messages explaining how they can apply for part of a $105 million settlement following a class action lawsuit against the airline over COVID-19 flight credits.
It was alleged that Qantas breached contractual obligations by failing to provide refunds for canceled flights during the pandemic.
The law firms behind the class action claim that while the texts may seem suspicious, they are real. (Delivered)
Eligible customers are expected to receive a minimum payment of $50, although some payments may be significantly higher depending on their circumstances.
The number of bookings affected and delays customers experience will impact the amount of refund they receive.
This week, law firms Echo Law and Piper Alderman began sending court order notices to clients via text message and email.
Echo Law partner Andrew Paull said the notices are an important step towards the distribution of settlement funds, but clients first need to follow the instructions and take steps to participate in the proposed settlement.
“That’s why we reach out via email and text using the details customers provided to Qantas when purchasing their tickets,” Mr Poll said.
“Even customers who have used their flight credit or subsequently received a refund are eligible as long as they meet the qualifying criteria.”
The class action claims Qantas failed to provide refunds for canceled flights during the pandemic. (ABC News: Billy Cooper)
Customers who received Qantas Flight Credits for canceled flights between January 2020 and November 2022 may be eligible.
Piper Alderman attorney Kate Sambrook said the texts and emails sent by the firms were in fact legitimate.
“We understand that the high volume of scams means that some recipients of these messages may be unsure whether text messages or emails are legitimate.”
She said the process will take “several months” and the firm “currently expects payments to begin being made by the end of this calendar year.”
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Qantas isn’t the only airline to come under scrutiny over COVID-era flight credits. (AAP: Paul Miller)
Qantas will distribute $68 million to customers who received travel credits rather than refunds for flights canceled during the pandemic.
Another $37 million was set aside from the award for fees and legal costs in the case brought by Echo Law.
As part of the settlement, Qantas admitted no wrongdoing.
The airline has also extended the validity of COVID-19 flight credits indefinitely.
Eligible customers are expected to receive a minimum of $50, although some payments may be much higher. (Pexels: Miles Burke)
Qantas says customers eligible for compensation under the settlement can still request a refund instead of using their COVID-19 credit.
The settlement still requires Federal Court approval.
Lawyers expect payments to begin after the approval process, with timing dependent on the final settlement process.
It comes as airlines continue to come under scrutiny for billions of dollars in COVID-era flight credits issued when pandemic restrictions led to mass cancellations.
Virgin Australia has faced pressure from customers and consumer advocates over unused flight credits due to COVID, but unlike Qantas, Virgin credits are still subject to expiration conditions.