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The Commerce Commission will be filing charges against Jetstar under the Fair Trading Act, alleging Jetstar misled consumers about their rights to compensation when flights were delayed or cancelled for reasons within Jetstar’s control.
Commerce Commission general manager competition, fair trading, and credit Vanessa Horne says Kiwi consumers have rights under aviation law, and the Commission believes Jetstar’s communications likely discouraged consumers from seeking compensation they were entitled to, and that Jetstar likely denied legitimate claims.
“Airlines have a responsibility to not mislead consumers about their rights in the event of cancellations or delays.
“The Civil Aviation Act is clear that airlines have a responsibility to reimburse customers for loss caused by cancellations or delays on New Zealand domestic flights that are within the airline’s control.” This likely includes delays or cancellations that are due to staffing or mechanical issues.
In these circumstances consumers are entitled to reimbursement for reasonable costs caused by the delay, which may include the cost of meals, accommodation, and other costs consumers had to pay to get to their destination, up to 10 times the cost of the ticket.
“The Montreal Convention sets out consumers’ rights when travelling internationally, and consumers are entitled to reimbursements for costs incurred from delays and cancellations unless the airlines did all they could reasonably do to prevent the disruption,” says Vanessa.
For international flights consumers are entitled to the reasonable costs arising from the delay, which could include replacement flights, accommodation, and food, up to a maximum set under the Convention, currently around $11,000.
In the Commission’s opinion, Jetstar likely made false or misleading statements to consumers about their rights in aviation law, in 2022 and 2023.
“The Commerce Commission expects large businesses to take their responsibilities under the law seriously – they must honour their obligations to consumers,” says Vanessa.
Jetstar’s website allows consumers to resubmit claims for compensation for reasonable costs from cancelled or delayed flights which may have been incorrectly handled at the time. Consumers can also submit new claims for compensation of reasonable costs when a flight was delayed or cancelled for reasons within Jetstar’s control. The Commerce Commission encourages any consumers who think they may be eligible to visit Jetstar’s website.
The Commission will be filing charges in the Auckland District Court shortly, and so is unable to provide any further information at this time.
Jetstar issued a response, apologising to New Zealand customers for their mistake.
“We’re deeply sorry to have let our New Zealand customers down by errors made in assessing some compensation claims for disrupted flights in 2022 and 2023, as our operations restarted following COVID.
“Since becoming aware of this issue, we’ve been focused on making things right for our customers and improving our communication and processes.
“Late last year, we began reviewing past claims and reaching out to impacted customers to ensure they are correctly reimbursed, and we are continuing to work through this as a priority.
“We’ve also fully cooperated with the New Zealand Commerce Commission as they conducted their investigation.
“Any of our customers who feel they may not have received the correct compensation for a New Zealand flight disruption in accordance with New Zealand aviation law can contact us to have their case reviewed here.”
