Jetstar NZ has been fined $2.25 million for misleading customers over their compensation rights when flights are delayed or cancelled.
The reserved decision was delivered in the Auckland District Court this morning by Judge Brooke Gibson.
The offending relates to delays or cancellations within Jetstar’s control, which includes mechanical issues or staff sickness.
The airline’s already compensated around 2700 passengers, more than $1 million all up, for the offending over 2022 and 2023, and acknowledged its conduct was reckless but not deliberate. It’s also donated $860,000 to an unnamed children’s charity.
The airline faced 20 charges involving misleading statements about compensation for delayed or cancelled flights, (Source: 1News)
In a statement issued before sentencing, the airline said it was “deeply sorry for letting our New Zealand customers down”.
Under aviation laws, when a flight is cancelled for reasons within an airline’s control, consumers are entitled to reimbursement for reasonable costs caused by the delay or cancellation.
This may include the cost of meals, accommodation, and other costs consumers had to pay to get to their destination, up to 10 times the cost of the ticket, according to the Commerce Commission.
The morning’s headlines in 90 seconds, including a cash boost for regional airlines, sellers re-enter the housing market, and Donald Trump’s social media fury. (Source: 1News)