Australia’s Federal Court has ordered Qantas Airways to pay a A$90 million (US$59 million) penalty for illegally outsourcing about 1,800 ground-handling roles at 10 airports during the depths of the Covid-19 crisis in 2020. Justice Michael Lee said the sanction—equivalent to 75 per cent of the statutory maximum—must be large enough to serve as a real deterrent and “not be perceived as the cost of doing business.” Under the ruling, A$50 million of the fine is to be paid directly to the Transport Workers Union, which brought the case, while the remaining A$40 million will be held for future distribution to affected former employees pending further court directions. The decision comes on top of the A$120 million compensation fund Qantas established last year to cover economic loss and other damages suffered by the sacked workers. The court had previously found the airline’s outsourcing plan was driven in part by a desire to blunt collective bargaining and potential industrial action. Monday’s order marks the largest civil penalty ever imposed for breaches of Australia’s workplace laws. Qantas said it accepts the judgment and will meet the payment, as new chief executive Vanessa Hudson continues efforts to repair the carrier’s standing after a string of reputational blows.