Man challenges CEO to refund flight costs

A Wellington man desperate to get nearly $6000 worth of Virgin Australia airfares refunded two years after his flights were cancelled has had a robust email exchange with the airline’s chief executive.

Phil Gorman spent $5800 on fares in 2019 to fly Wellington to Perth on Virgin Australia for a family holiday in July 2020. But the flights were cancelled after Covid19 forced borders to shut, and Virgin Australia entered voluntary administration in April 2020.

The company was sold to Bain Capital and underwent a creditor approved restructure completed in November 2020.

During the administration process, customers with bookings made on or before April 20, 2020 were categorised as unsecured creditors and were expected to receive compensation estimated between 9 cents and 13c in the dollar.

To maximise compensation, creditors voted in favour of customers receiving the full value of their booking in credit rather than the part refund.

Credits are valid until January 31 for travel up to December 27 next year.

The problem for Virgin Australia’s New Zealand customers is that the airline is not operating to New Zealand. The only New Zealand service it has planned is to Queenstown, starting in November.

Gorman said he kept asking for a refund via Virgin Australia’s Facebook pages and was recently blocked. He also tried the customer service team which suggested he book airfares out of Queenstown.

To get there from Wellington would cost another $2500, which he didn’t have, Gorman said.

Gorman emailed Virgin Australia chief executive Jayne Hrdlicka.

In his email, Gorman said he wanted a refund because Virgin Australia could no longer provide a service he paid for. ‘‘This just isn’t morally right to keep people’s money when they have paid you for a service you can know longer provide.’’

Hrdlicka emailed back saying she empathised with Gorman’s situation, but the reality was, when Virgin Australia went into administration, he became one of its creditors.

‘‘I am sorry that we cannot change the legal framework that has been determined by the courts in the treatment of your cancelled trip.’’

Gorman replied, saying he could not fathom how a business of Virgin Australia’s size and values could hold onto customers’ money, and he urged her to reconsider the airline’s position.

In response Hrdlicka said she could not treat anyone differently.