Jetstar Faces Charges by NZ Commerce Commission for Allegedly Deceiving Consumers
The NZ Commerce Commission has accused Jetstar of misleading consumers about their compensation rights for delayed or cancelled flights.
New Zealand’s Commerce Commission will be pressing charges against Jetstar under the Fair Trading Act, claiming that the airline provided false information to customers regarding their entitlement to compensation for flight delays or cancellations that were within Jetstar’s control.
Vanessa Horne, the Commission’s General Manager of Competition, Fair Trading, and Credit, stated that Jetstar’s communications may have discouraged New Zealand travelers from claiming compensation they deserved, leading to the denial of valid claims in 2022 and 2023.
“Airlines are obligated to be truthful with consumers regarding their rights when faced with flight cancellations or delays,” Horne emphasized. She added, “The Civil Aviation Act clearly states that airlines must reimburse passengers for losses incurred due to cancellations or delays on domestic flights within their control in New Zealand.”
The Commission believes this includes delays or cancellations caused by staffing or mechanical issues, for which passengers are entitled to reimbursement for reasonable expenses such as meals, accommodation, and other costs incurred to reach their destination, up to 10 times the ticket price.
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Passenger rights on international flights fall under the Montreal Convention, granting them compensation for costs incurred due to delays and cancellations unless the airline took all reasonable measures to avoid the disruption,” Horne stated.
This could mean offering alternate flights, accommodation, and meals, up to a specified maximum under the Convention, currently set at around $11,000 (US$6,800).
‘False or Misleading Statements’: Commission
The Commission alleges that Jetstar likely provided false or misleading information to consumers regarding their rights in 2022 and 2023.
“The Commerce Commission expects large corporations to fulfill their legal obligations with regards to consumers; they must respect their responsibilities,” stated Horne.
Jetstar’s website now permits passengers to reapply for compensation for reasonable expenses incurred from flight cancellations or delays that may have been mishandled previously. New compensation claims can also be submitted.
In a statement, Jetstar acknowledged its cooperation with the Commission and expressed regret for the “errors” made in relation to compensation during 2022 and 2023.
“We deeply apologize for failing our New Zealand customers due to inaccuracies in evaluating some compensation claims for disrupted flights in 2022 and 2023, especially following the aftermath of the COVID pandemic,” the airline conveyed.
“Since identifying this issue, we have been focusing on rectifying the situation for our customers and enhancing our communication and procedures,” Jetstar added.
