Jetstar faces legal action from NZ consumer watchdog
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The news: Qantas budget airline Jetstar is facing legal action from New Zealand's Commerce Commission over allegations the company misled consumers about their rights to compensation linked to delayed or cancelled flights for reasons within Jetstar's control.
The numbers: The reasons could include delays or cancellations due to staffing or mechanical issues.
Under the Montreal Convention, which sets out consumer rights linked to international travel, consumers are entitled to the reasonable costs arising from a delay, which could include replacement flights, accommodation, and food, up to a maximum set under the convention, currently around NZD11,000.
The context: The case, which will take place before the Auckland District Court, is linked to statements made to consumers in 2022 and 2023.
According to the Commerce Commission, Jetstar’s communications likely discouraged consumers from seeking compensation they were entitled to, and Jetstar likely denied legitimate claims.
What they said: “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,” Commerce Commission general manager for competition, fair trading and credit, Vanessa Horne said.
The source: Commerce Commission New Zealand
