The consumer watchdog, the ACCC has taught Jetstar an expensive lesson to not discriminate against budget travellers when it comes to fare refunds.
Jetstar had a 'No Refunds' fare rule for passengers who booked the basic Jetstar 'Starter fare'. This fare pays for a seat and carry-on baggage only. If a passenger wants entertainment, food and flight flexibility (including refund rights) then they must pay more.
In other words, Jetstar took the view that you get what you pay for. And even if Jetstar delays or cancels the flight there are no refunds for 'Starter fare' passengers.
The ACCC took Jetstar to the Federal Court and the Court fined Jetstar $1.95 million because it is against the Australian Consumer Law to deny passengers the right to compensation if an airline cannot provide flights or provide them within a reasonable time.
As a result, where a flight is delayed by more than 3 hours or cancelled because of weather events, air traffic control issues, industrial action by a third party, security issues and so forth, airlines in Australia must:
- Attempt to book on the next available flight they provide, at no extra cost;
- If they cannot, provide a flight credit or a refund.