The Commerce Commission says it will file charges against Jetstar under the Fair Trading Act for allegedly misleading customers about their rights to compensation for delayed or cancelled flights for reasons within the airline’s control.
The Commission said it believed the airline’s communications likely discouraged consumers from seeking compensation they are entitled to under aviation law.
It also accused Jetstar of likely denying legitimate claims.
“Airlines have a responsibility to not mislead consumers about their rights in the event of cancellations or delays,” Commerce Commission general manager for competition, fair trading and credit Vanessa Horne said.
“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.
“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.”
The Commission believed Jetstar likely made false or misleading statements to consumers about their rights under 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,” Horne said.
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. Customers can also submit new claims for compensation of reasonable costs when a flight was delayed or cancelled for reasons within Jetstar’s control.
Consumer NZ welcomed the news, which it said came after it complained to the Commerce Commission in 2022.
“After receiving numerous complaints from disrupted customers, we told the Commission we thought Jetstar was misleading passengers about their rights under the Civil Aviation Act,” said campaigns manager Jessica Walker.
In a statement, Jetstar said: “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. “
