22 Apr 2020

Covid-19: Air NZ 'despicable' for refusing refunds - customers

From Checkpoint, 5:08 pm on 22 April 2020

"I think they're despicable," dissatisfied Air New Zealand customer Steve Clark has told Checkpoint.

Other customers are outraged the airline is holding on to their money after Covid-19 basically grounded their flights. It is money some of them now really need to make ends meet.

Hundreds of Air NZ flights have been cancelled or moved and increased border restrictions and alert levels due the pandemic mean some travellers cannot even get to their take off point.

But a number of Air NZ customers say the airline is refusing to give their money back. Instead they are being offered credits they may never get to use.

Roz, Steve and Deborah told Checkpoint it is not right, from a company that benefited from $70 million in wage subsidies and a government loan of up to $900 million.

Air New Zealand declined to be interviewed, but in statement it said it is crediting or refunding customer tickets according to the fare bought and the country it was bought in.

It said it is helping customers rebook until June 30. Air New Zealand has extended credits accrued due to Covid-19 changes, and people will now have until June 30, 2021 to book and then a further 12 months to travel.

It said it has received great feedback on its flight credit option and 240,000 people have opted to to put their flights into credit.

What are your rights in such a situation? 

"Unfortunately our consumer laws here are not as strong as they should be, and consumers don't have an automatic right to a refund in these situations," Consumer NZ's head of research Jessica Wilson told Checkpoint

"We've been pushing for that to change. The situation at the moment is that you're basically dependant on what the airlines's terms and conditions say regarding cancelled flights. In most cases airlines are providing credit and not refunds."

"We have said the start of this, that airlines should be doing the right thing. They should be offering refunds to customers whose flights have been cancelled because of Covid-19. 

"It's the right thing to do, regardless of what the terms and conditions or what the law says. Be fair."