Charging to fight for flight refunds
RETIREE David Evans wants a refund on flights he can no longer take due to COVID19 but, like many Australians, he’s struggling to get his money back.
The 69-year-old booked four return tickets to Los Angeles in July for $1000 each through Flight Centre, travelling with American Airlines.
But after cancelling the trip because of the pandemic the travel company told him he would have to pay a $300 fee per passenger to get his money back.
“It’s absolutely ridiculous,” Mr Evans said. “It’s going to cost us just because it says it in the terms and conditions, which nobody ever reads. I don’t want a credit; I want my money back because I’m worried about the future of the company.”
But late last week Flight Centre updated its fee terms and a cap of $600 on cancellation fees now applies to any international booking for two or more customers. “I still think that’s an outrageous amount of money - $600 is still too much to charge,” Mr Evans said. His options are to get a credit from Flight Centre, a credit from the airline or a refund with a fee attached.
Just last week airline giant
Virgin Australia went into voluntary administration and the future of the company remains in limbo. It is currently flying a minimal domestic schedule of commercial services until early June. Virgin customers whose flights were affected by the COVID-19 crisis and who have a ticket for travel up to September 30, 2020 can change their booking or request a travel credit, without a change or cancellation fee.
Flight Centre spokesman Hadyn Long said passengers affected by the pandemic could “leave their money on file to be put towards future bookings, without being charged any fees by Flight Centre”.
“If customers request a refund, charges do normally apply, although they are being waived or reduced in some cases,” he said.
The Australian Competition and Consumer Commission’s deputy chair, Delia Rickard, said it came down to the contract on the particular fare type as to what people were entitled to.
“If it’s a fare that says no-fee cancellation and you have cancelled it, then you should be entitled to a refund,” she said. “We are encouraging all airlines and travel companies to treat customers fairly and particularly those suffering particular hardship.”
Ms Rickard said, in most circumstances, customers would be entitled to a credit note or a refund.