Watchdog Complaint Made Against Air NZ on Refunds

The New Zealand consumer watchdog is lodging a complaint with the Commerce Commission over Air New Zealand’s ongoing refusal to refund passengers from all its cancelled US flights. The airline last month confirmed that people who had flights booked from or into the United States are entitled to a refund, in accordance with US law. Consumer NZ chief executive Jon Duffy said the organisation has had a steady stream of complaints from people who have been given misleading information by the national carrier about their refund rights.

Under US regulations, passengers on flights to or from the United States, including transiting passengers, are entitled to refunds where flights are cancelled, regardless of the reason.

But he said Air New Zealand was still not refunding passengers who were to transit in the US.

The U.S Department of Transportation had confirmed that this was against U.S regulations, he said.

“We believe that the legal position is clear here and that these people are entitled to a refund and Air New Zealand is coming out and saying that they are not.

“We believe that Air New Zealand is misleading New Zealanders about their rights, which could be a breach of the Fair Trading Act.”

In addition, Duffy said Air New Zealand was encouraging people to get flight credits rather than refunds and is only acknowledging that a refund is available when asked.

“When you think of the volatility that we’re likely to experience in the aviation industry in the coming months and potentially years, having your money locked up as a credit with the airline may not necessarily be the best thing for you. You might be better to get your money out.”

Consumer NZ ultimately wants a law change to bring New Zealand in line with the U.S, where people are entitled to a refund regardless of whether or not it’s the airline’s fault.

“Air New Zealand flies through the US so if they run foul of US federal authorities, that might not be good for their business,” he said.