2 November 2011 Last updated at 04:08 ET

Qantas to compensate passengers affected by grounding

Qantas' decision to ground its entire fleet has been criticised by passengers

Qantas has agreed to further compensate passengers affected by its move to ground its entire fleet over a dispute with unions.

The move comes after the Australian Competition and Consumer Commission (ACCC) asked it to act on the matter.

Qantas had grounded its entire fleet on Saturday, affecting almost 70,000 passengers.

The airline resumed operations on Monday after a court ordered a permanent end to the dispute.

"Qantas agrees to, and accepts, the ACCC's request that it compensate passengers for all reasonable losses incurred as a direct result of the grounding," Qantas said in a statement.

"Qantas has always intended to ensure that disrupted customers incur no financial loss."

Qantas said it had already offered refunds, rebooking and compensation for expenses incurred by travellers, and will announce further measures as an apology to affected customers.

Earlier, the ACCC said that it had asked the airline for a report on the claims it had received and the redress provided on them.

"It is squarely in the airline's camp to make good," said Rod Sims chairman of ACCC.

"If you have incurred additional expenses as a result of the grounding, the ACCC is of the view that Qantas should compensate you for all your reasonable losses," he added.