Australia's 4 major airlines forced to make changes to refund policies in significant win for travel

[Ansett]

Jetstar faces $2m fine for misleading public about refund rights

It will be interesting to see what changes all the others make to their terms and conditions and if this will be applied retrospectively.

If all airfares are now refundable what impact does everyone think it will have on prices?

 

[Ansett]

Wonder how long it is before the lawyers launch a class action against the Airlines?

 

[eastwest101]

Looks like it isnt being discussed yet:

links to story:

Jetstar, Qantas, Virgin and Tigerair investigated for misleading refund policies

A lot of media attention with JQ getting the biggest fines, but once you cut through all the spin it looks like the ACCC have got the airlines to be part of enforceable undertakings to comply with australian consumer law. When said like that it seems a pretty trivial "win" but will be interesting to see the effects on refund policies in the future.

 

[eastwest101]

And more media attention:

Jetstar, Qantas, Virgin and Tigerair investigated for misleading refund policies

More along the lines of Airlines cannot "T&C their way out of consumer law".

The ACCC and Jetstar have agreed to a $1.95 million penalty, which has been submitted to the Federal Court. The court will now decide on the appropriate penalty.

The watchdog has secured court-enforceable undertakings from Qantas, Virgin Australia and its subsidiary Tigerair, as well as Jetstar, to make sure their refund policies and practices complied with consumer law.

Jetstar said since July it has updated the wording of its terms and conditions to make passengers’ consumer rights clearer.

Airlines were obligated to offer refunds when there was a significant delay or cancellation due something under their control, finder.com.au’s insights manager Graham Cooke said.

“Cheaper fares have often been marked as not being refundable, when in reality customers are entitled to a refund if a delay or cancellation is due to an issue under the airline’s control,” Mr Cooke said.

“The ACCC rulings do not mean that every delay is covered. Circumstances which are outside of the airline’s control such as freak weather events and natural disasters don’t entitle you to a refund. This is where it’s best to check your travel insurance policy to see if you’re covered.”

Mr Cooke said generally, the more basic the airline, “the less compensation you’ll get.”

“Flight delays and cancellations are sometimes unavoidable for travellers, but you should never pay for a service if you’re not receiving it,” he said.

 

[TheInsider]

If all airfares are now refundable what impact does everyone think it will have on prices?

Airfares won't be refundable. It will just be more flexible in case of disruptions and delays to get a refund (and not just a credit). I can tell you now, if they allowed refundable tickets on all airfares, the airfares will go up in price dramatically.

 

[GoldCanyon340]

Although this doesn't mention the ''interesting' way QF calculates refunds for involuntary downgrades.

 

[Ansett]

ACCC Fines JQ Over Denying Refunds.

 

[andye]

Suspect cheap fares will become less cheap. Cakes and eating

 

[casanovawa]

cough house how corporations and the enforcement agencies get to 'agree' to the size of the fine/penalty...

The rest of us just get told what its going to be...

And the fine/penalty I bet never exceeds the gain these corporations make out of it, making it a smart business decision...

 

[RooFlyer]

cough house how corporations and the enforcement agencies get to 'agree' to the size of the fine/penalty.

After the banking Royal Commission, and ASIC etc hauled over the coals, these 'deals' should become less sweet.

 

[Flying mermaid]

Link to Qantas’ undertaking. Hopefully thin edge of the wedge to get more control over what happens when things go wrong

Qantas Airways Limited

 

[Flying mermaid]

Suspect cheap fares will become less cheap. Cakes and eating

all this does is make the airlines obey consumer law. Customers have never been able to get refunds, just because they feel like, or they change their mind or they are at fault. That will still apply to the majority of cheap flights.

However you can’t deny a refund where the goods are not fit for purpose. So if the airlines cancel a flight, or there is an unacceptable delay they have to provide a refund. Seems pretty fair really and I have never understood why airlines were able to get away with it.

 

[andye]

all this does is make the airlines obey consumer law. Customers have never been able to get refunds, just because they feel like, or they change their mind or they are at fault. That will still apply to the majority of cheap flights.

However you can’t deny a refund where the goods are not fit for purpose. So if the airlines cancel a flight, or there is an unacceptable delay they have to provide a refund. Seems pretty fair really and I have never understood why airlines were able to get away with it.

I misunderstood the scope of the ruling even after quickly reading the article Agreed its quite out of order to avoid paying up for a cancellation/big delay. Customers shouldnt have to ask either

 

[serfty]

What about a aa cancellation whet the alpine tyres to put you on to another flight within 60 minutes either way?

Can you now get a full refund instead?

 

[Flying mermaid]

What about a aa cancellation whet the alpine tyres to put you on to another flight within 60 minutes either way?

Can you now get a full refund instead?

this is the question - no definition yet of what is an unacceptable delay.

I would have thought most people would just be happy to get to their destination, with a small delay like that. Not too much benefit in getting a refund, unless the delay means you are going to miss an event or connection which means the trip becomes pointless.

 

[Quickstatus]

Nah not much will materially change and this is a very good outcome for the airlines.

Once a flight cancellation occurs and a passengers the cancels their side of the contract and asks for a refund, is there an obligation to carry the passenger to original destination.,

How is a cancelled return trip refund calculated?. Half of a return ticket?or as the airline will do- reprice it as 2x one ways and the return leg refund becomes zero plus no obligation to carry passenger back home?

Airlines promise to get a passenger from A to B. There is no guarantee of when. So unless the airline cancels a flight and then provide no alternative to fulfil the carriage, can the passenger ask for a refund?. Is a refund available if the passenger does not agree to the changed date?

Or an airline cancels flight, promises to refund but puts on a later flight for a much higher last minute price?

 

[Flying mermaid]

Nah not much will materially change and this is a very good outcome for the airlines.

Once a flight cancellation occurs and a passengers the cancels their side of the contract and asks for a refund, is there an obligation to carry the passenger to original destination.,

How is a cancelled return trip refund calculated?. Half of a return ticket?or as the airline will do- reprice it as 2x one ways and the return leg refund becomes zero plus no obligation to carry passenger back home?

Airlines promise to get a passenger from A to B. There is no guarantee of when. So unless the airline cancels a flight and then provide no alternative to fulfil the carriage, can the passenger ask for a refund?. Is a refund available if the passenger does not agree to the changed date?

Or an airline cancels flight, promises to refund but puts on a later flight for a much higher last minute price?

ACCC has included delays as a reason for cancellation. Lots of questions to be answered, but the issue is the airlines have been saying no refunds at all no matter what they do for red e fares. That is no longer true.

Of course if the passenger asks for a refund then the airline has no obligation to carry them, if you want that then dont ask for a refund! It’s a bit like asking for a refund for a toaster that doesn’t work, but still wanting to have it If you ask for a refund then it’s up to you to find alternate transport. E.g you might elect to get a bus or hire a car.

I think there are going to be a lot more complaints before this is sorted out and calculating the refund is one of them - we all know how Qantas does that to their benefit. Makes a case for not doing domestic returns, always buy them as oneways and then it’s easy.

 

[MEL_Traveller]

Nah not much will materially change and this is a very good outcome for the airlines.

Once a flight cancellation occurs and a passengers the cancels their side of the contract and asks for a refund, is there an obligation to carry the passenger to original destination.,

How is a cancelled return trip refund calculated?. Half of a return ticket?or as the airline will do- reprice it as 2x one ways and the return leg refund becomes zero plus no obligation to carry passenger back home?

Airlines promise to get a passenger from A to B. There is no guarantee of when. So unless the airline cancels a flight and then provide no alternative to fulfil the carriage, can the passenger ask for a refund?. Is a refund available if the passenger does not agree to the changed date?

Or an airline cancels flight, promises to refund but puts on a later flight for a much higher last minute price?

What this will mean that in cases where there is a significant delay or schedule change, passengers who choose not to travel will be able to get a refund. Not lose their money, or have to accept a credit voucher. But an actual cash refund for the full amount.

The ACCC is saying that despite what the contract says (flight times are (supposedly) not guaranteed and do not form part of the contract) - consumer law may override this to a certain extent in some cases.

Passengers will have to use their judgement on this. If a passenger still chooses to travel, a walk up fare on another airline may be more expensive on the day of travel, but a full refund from the original airline may help soften the blow.

 

[andye]

What about a aa cancellation whet the alpine tyres .....

I thought you were talking about a weather delay in Innsbruck for a minute there..

 

[Mattg]

This reminds me of the time Jetstar tried to tell me that all extras on Starter fares were non-refundable. So even though I paid for some additional services that I did not receive, I was not entitled to any compensation due to the fare rules. The guy I spoke to seemed to think that Jetstar's terms & conditions made Australian Consumer Law redundant (and even tried to make me feel like I was being unreasonable in asking for a refund).

Good to see things might (hopefully) change soon...