Jetstar Faces Charges for Misleading Passengers on Compensation Rights

The New Zealand Commerce Commission is taking legal action against Jetstar, alleging that the airline provided false or misleading information to passengers regarding their rights to compensation for flight delays and cancellations within its control. This announcement was made in a press release on September 18, 2024, detailing the Commission’s intention to file charges under the Fair Trading Act.

The Commission asserts that during 2022 and 2023, Jetstar misrepresented the compensation rights of its customers, potentially deterring them from claiming refunds or reimbursement they were legally entitled to. Vanessa Horne, General Manager of Competition, Fair Trading, and Credit at the Commerce Commission, emphasized the importance of transparency from airlines regarding passenger rights.

“Airlines have a responsibility not to mislead customers about their rights in the event of cancellations or delays,” Horne stated. She reiterated that the Civil Aviation Act mandates airlines to compensate passengers for losses arising from cancellations or delays attributed to the airline’s operations, which often include issues related to staffing or mechanical failures.

Under the Civil Aviation Act, all passengers possess the right to seek compensation or refunds directly from the airline. If a claim is denied, the airline must provide a detailed explanation for the rejection. In instances of delays, passengers are entitled to reimbursement for reasonable expenses incurred, such as meals, accommodation, and other related costs, amounting to as much as ten times the price of their ticket.

For international flights, passengers can claim expenses related to delays, which can include replacement flights, lodging, and food, with compensation potentially reaching up to NZ$11,000. Jetstar’s policy indicates that customers may receive compensation if their flight is delayed by three hours or more. They are also eligible for compensation if the airline alters the departure time by less than three hours and alternative flights are not available. Moreover, compensation is applicable in cases of overbooking, as outlined on Jetstar’s official website.

Horne concluded with a reminder that large businesses, including airlines, are expected to adhere strictly to legal obligations. “The Commerce Commission expects large businesses to take their responsibilities under the law seriously – they must honor their obligations to consumers,” she said.

As the case develops, it highlights the ongoing issues regarding consumer rights in the airline industry, particularly concerning transparency and accountability. Passengers are encouraged to be informed about their rights and seek appropriate compensation when faced with flight disruptions.