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Qantas - Qantas Frequent Flyer
Member since 11 Oct 2014
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That is open to interpretation, Eli. Legally, QF has plead 'guilty', based on the court's re-interpretation and has been fined USD $ 62,500.00. Should further infractions occur within the next 12 months, a further additional amount of USD $ 62,500.00 will automatically apply.
QF was granted an exemption to the Cabotage Rule in 1959 which allows QF to sell LAX-JFK-LAX sectors in conjunction with an international journey. In this case .. which occurred in 2015, QF sold the above sectors in conjunction with an Air Vanuatu codeshare and an American Airlines codeshare to Auckland NZ. Under the Court interpretation, had the trips been on QF (metal) flight numbers, they would have been fine. The sold fares were ticketed with QF codeshare flight numbers but on non-QF metal. QF argued that the industry has become considerably more complex since 1959 and that 'codeshares' were not even heard of when the original grant was made.
QF took a 'path of least resistance' in this matter. In terms of corporate legal fees, you don't get much representation in US Courts for $62,500.00. Should the QF/AA JV be granted (or not), I am sure that QF will look towards the DOT to revise the clarity / grammar of the original 1959 rule.
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Originally Posted by Hany
No different from now. This case is specific to a handful of travellers who were flying JFK-LAX as part of a QF ticket that then put them on a QF codeshare departing the US on another airline. There's no impact at all on the standard arrangements for codeshares within the US.
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Hi Guest, join in the discussion on
Qantas fined US$125,000 for selling New York - Los Angeles tickets
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