Embattled airline Qantas has issued an abject apology to customers amid allegations that it engaged in “false, misleading and deceptive conduct” by selling tickets on already-cancelled flights.

The Australian Competition and Consumer Commission last week launched Federal Court action, claiming Qantas engaged in false, misleading or deceptive conduct after continuing to sell thousands of tickets on flights that had already been cancelled.

The watchdog is seeking penalties, injunctions, declarations and costs in excess of $250 million.

While indicating it may fight the court action, Qantas issued a statement on Monday acknowledging the allegations “have caused significant concern among our customers, our people and the general community”.

“We want to address those allegations as best we can without cutting across the legal process we are now involved in,” it said.

Qantas said the timeframe the ACCC’s claims related to – in mid-2022 – was one of “well-publicised upheaval and uncertainty” across the aviation industry as the it struggled to restart after the COVID pandemic.

“We openly acknowledge that our service standards fell well short and we sincerely apologise,” it said.

“The ACCC’s allegations come at a time when Qantas’ reputation has already been hit hard on several fronts. We want the community to know that we hear and understand their disappointment. We know that the only way to fix it is by delivering consistently. We know it will take time to repair. And we are absolutely determined to do that.”

Qantas faced a series of scandals last week, including a blowout in COVID refunds, claims it was protected from competitor Qatar Airways by the Albanese government, and the massive ACCC lawsuit.

Then on Friday, chief executive Alan Joyce was granted $10.8 million in shares for bonuses deferred during the pandemic in 2020, 2021 and 2022. He is also due for short-term bonus of up to $4.3 million and a long-term bonus of shares worth $8 million for the last financial year, the AFR reported.

Question Time grilling

The Qantas apology came as Prime Minister Anthony Albanese was forced to defend the government decision to bar Qatar Airways from boosting flights into Sydney, blasting the former LNP government for its “special agreement” with the Middle Eastern airline.

The opposition targeted Mr Albanese over the Qatar ruling in a sustained attack in Question Time on Monday.

The Prime Minister attempted to turn the heat back on the opposition, blaming it for a decision on Qatar flights made in 2018 that did not come into effect until 2022.

“What they did on that deal was put in a safeguarding mechanism … a special thing which other countries have not had to do, to safeguard Australia’s national interest. That was put in the agreement between Australia and Qatar,” he said.

Mr Albanese said the then Coalition government, with Michael McCormack as transport minister, was “clearly concerned about an abuse of market power”.

“Global aviation is not a free-for-all, which is why Qantas, when they decided to fly from Perth into London, had to get QF9 to go from Melbourne to Perth and into London. Because they’re restricted to just two slots,” he said.

“That’s why Qantas can’t fly into Paris whenever they like. There’s restrictions on flying into Rome. There is no air services agreement with Europe. We have the most competitive aviation market in the world, bar none.”

Earlier Nationals senator Bridget McKenzie had accused to the government of running a “protection racket” for Qantas and pushed for a Senate inquiry into the decision to block the additional 21 Qatar Airways flights, which had potential to reduce airfares and boost the Australian tourism industry.

“It’s very easy to assume that this government is continuing to run a protection racket for the most complained about company in our country,” Senator McKenzie said on Monday.

“There are a number of serious questions that need to be asked.”

Senator McKenzie has formally sought the public release of documents relating to the decision by Transport Minister Catherine King.

“A section of the Labor Party knows it’s not doing them any good to have such a cosy, close relationship with Qantas,” Senator McKenzie said.

The move to block the flights has come under scrutiny after it was revealed Qantas lobbied the government to do so, before posting a record $2.5 billion profit over the 2022/23 financial year.

Qatar Airways runs 28 flights a week to major airports across Australia and had hoped to expand its services. But the government blocked the plan.

On Monday, Mr Albanese said Qatar could add more seats into Australia any time it wanted.

“Right now … They can fly as many flights as they like into Adelaide, into Gold Coast, into Avalon, into Hobart, into Canberra,” he said.

“They can also – today – change the 777s into A380s and fly more people in here.”

But Opposition Leader Peter Dutton said there was a “murkiness” around the rejection.

“They’ve given seven different reasons in seven different days to stop Qatar flying those new routes,” he told Nine’s Today show.

“[Mr Albanese] has got to start listening to Australians. If you want to go and visit family overseas or want to go on a holiday, you don’t want to be paying thousands of dollars more for airfares.”

Rex Airlines deputy chair and former federal transport minister John Sharp said overturning the flight decision would be an appropriate course of action.

“Qantas plays the game very ruthlessly, they play it to win,” he told ABC radio.

– with AAP