Webjet slams Labor for airline [Air Australia] collapse

[anat0l]

Found this whilst trawling the site for another article:

https://www.travelweekly.com.au/travel-today/news/webjet-slams-govt-for-air-collpse

Webjet is seeking compensation from the Federal Government after insisting more should have been done to prevent the collapse of Air Australia and the subsequent financial misery that confronted travel agents and consumers.

The online retailer has twice written to Prime Minister Julia Gillard - without reply - outlining its grievances and accusing the government of “gross negligence” in failing to conduct financial checks on the carrier.

Webjet has now taken up the matter with opposition leader Tony Abbott.

Non executive chairman David Clarke told Travel Today the government has a duty to ensure airlines are solvent.

I don't have time to write my tirade just yet, so I'll let you all have first dibs.

 

[yohy?!]

lol @ webjet

 

[medhead]

What a load if equine excrement. The government has to make sure private businesses are solvent. Since when?! (maybe since the fiscally strong Howard government started bailing out private businesses? )


Sent from the Throne

 

[Mal]

It is Webjet's choice which carriers they choose to ticket. Perhaps they should have performed their own due diligence before having Air Australia as a supplier...

 

[ric_melb]

And the industry knew for a considerable time before Air Australia folded, that they were in financial strife!

 

[lovestotravel]

And the industry knew for a considerable time before Air Australia folded, that they were in financial strife!

Yep it was clear for months that things were not good!

 

[ozbeachbabe]

If a pax booked Air Australia through WebJet whose merchant number was charged?

If it was AirAustralia's then the pax could do a chargeback to the credit card company however if Webjet was the merchant then it would be considered a "cash sale" so they'd be left holding the baby ie pax probably demanding refunds from WebJet who can't deliver.

An example of when not to use an agent & book direct on airline website with your credit card.

 

[mella2007]

I'd be slamming Webjet for the ridiculous ticket prices they charge. I am sure they could wear any cost as they inflate everything else.

 

[whatmeworry]

My Sympathy factor for Webjet equals a big fat ZERO!

 

[ozbeachbabe]

I'd be slamming Webjet for the ridiculous ticket prices they charge. I am sure they could wear any cost as they inflate everything else.

An interesting situation as if you bought a VC ticket via the webjet site what company appears on your credit card statement?


Say it is Webjet, pax then calls credit card provider to facilitate chargeback only to be told it can only be reversed if the merchant was VC not Webjet.

Does the consumer still have a case whereby they have paid Webjet, VC can't deliver so it's then deemed that Webjet didn't deliver?

 

[Mal]

Say it is Webjet, pax then calls credit card provider to facilitate chargeback only to be told it can only be reversed if the merchant was VC not Webjet.

Does the consumer still have a case whereby they have paid Webjet, VC can't deliver so it's then deemed that Webjet didn't deliver?

A very messy situation. Many travel agents (including WebJet I assume) got burnt by Air Australia. Generally a bank won't process a chargeback against a travel agent just because your carrier became bankrupt. However, <insert social responsibility here>, the agents were in the middle of a horrible situation.

I don't know how things worked out - although I have heard that certain agents gave "ex gratia" payments to <some> affected clients. Now, I don't know where that money came from ... was it credit card chargebacks from the agent, was it sucked up into goodwill costs etc. Likewise, anyone who booked directly with Air Australia <eventually should have> got a chargeback processed.

People like me also got a Travel Insurance claim processed...

But what I learnt from the process... A travel agent is little/no protection for a collapse of an airline.

 

[Sprucegoose]

An interesting situation as if you bought a VC ticket via the webjet site what company appears on your credit card statement?


Say it is Webjet, pax then calls credit card provider to facilitate chargeback only to be told it can only be reversed if the merchant was VC not Webjet.

Does the consumer still have a case whereby they have paid Webjet, VC can't deliver so it's then deemed that Webjet didn't deliver?

Interesting Oz, I guess if you paid webjet and VC collapsed, they coud then substitute another airline for service. However I couldn't imagine this if webjet had lost money with VC as they were already out of pocket.

Webjet would have known the VC were in trouble for months, as the underwriters of travel policies specifically excluded them. They would have received funds in that state of knowledge.

 

[ozbeachbabe]

Interesting Oz, I guess if you paid webjet and VC collapsed, they coud then substitute another airline for service. However I couldn't imagine this if webjet had lost money with VC as they were already out of pocket.

Webjet would have known the VC were in trouble for months, as the underwriters of travel policies specifically excluded them. They would have received funds in that state of knowledge.

I'd say they'd only do a substitution if they still had the clients money but I would think the funds would have already been paid into the VC coffers courtesy of BSP (bank settlement plan) which is the system of how tickets are paid for when ticketed in-house.

In other words Webjet's stance would be the 'all care but no responsibility' line.

IIRC last December Flight Centres were wanting to do their bookings via the VC website (using VC's merchant number) when the name change went from Strategic to Australia which is when the insurance companies changed their wording on the policies with regard to not paying up in the event of a collapse.

VC said no & they would have to continue issue tickets via BSP & FCI wisely said "no deal".