The New Zealand Commerce Commission is filing charges against Jetstar for allegedly making false or misleading statements to passengers about their rights to compensation when flights were delayed or cancelled for reasons within Jetstar’s control.
In a press release, published on September 18, 2024, the New Zealand’s Commerce Commission announced that it plans to file charges against the budget airline for violating the Fair Trading Act.
The Commission said it believes that Jetstar gave false or misleading information to customers in 2022 and 2023 regarding their rights under aviation law, which “likely discourage customers from seeking compensation they were entitled to”.
“Airlines have a responsibility to not mislead customers about their rights in the event of cancellations or delays,” said Vanessa Horne, Commerce Commission’s General Manager of Competition, Fair Trading, and Credit.
“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,” Horne added. This likely includes delays or cancellations caused by staffing or mechanical issues.
According to the Civil Aviation Act, every passenger has the right to claim compensation or a refund from the airline directly. If the airline denies the claim, they must provide a clear explanation for the decision.
In these circumstances customers are entitled to reimbursement for reasonable costs caused by the delay. This can cover the cost of meals, accommodation, and other expenses needed to reach their destination, up to 10 times the ticket price.
Passengers on international flights can claim reasonable expenses due to delays, which include replacement flights, accommodation, and food, totaling about NZ$11,000.
Jetstar customers can receive compensation if their flight time changes by three hours or more. They are also eligible for compensation if the airline changes the departure time by less than three hours and they cannot book a replacement flight. Additionally, compensation is available for when the flight is overbooked, according to Jetstar’s official website.
“The Commerce Commission expects large businesses to take their responsibilities under the law seriously – they must honor their obligations to consumers,” Horne added.