Budget airline Jetstar has apologised to New Zealand customers, as it anticipates a hefty fine after pleading guilty to misleading passengers about their rights.
The Commerce Commission took Jetstar to court over charges that it discouraged consumers from seeking compensation they were legally entitled to for delayed or cancelled flights.
Representatives from both parties appeared in the Auckland District Court today for sentencing, however Judge Gibson reserved his decision for a later date.
The New Zealand watchdog argued that Jetstar’s offending was not just careless but reckless, and continued despite multiple warnings and similar charges from the Australian Competition and Consumer Commission in 2018.
Jetstar’s lawyer Joe Edwards argued that his client had shown remorse and done everything it could to refund customers.
As of March this year, Jetstar had refunded $843,000.
Judge Gibson commended the airline and noted this number had risen to more than $1 million in the following months.
Both parties agreed to a starting point of $2.5 million and a 25% uplift in recognition of Jetstar’s financial position.
Judge Gibson reserved his decision as to the discounts he would apply to the fine.
Jetstar has apologised in a written statement.
“We are deeply sorry for letting our New Zealand customers down during our Covid restart by incorrectly assessing some compensation claims for cancelled flights in 2022 and 2023.
“We know this caused frustration, stress and financial impact, and we take full responsibility for these mistakes.”
The airline said that in the previous two years, staff had reviewed thousands of past claims and been in contact with customers affected by the “errors.”
“For anyone who still feels they may not have received the correct compensation for a past flight disruption in Aotearoa, please get in touch with us here so we can review your case,” it said.
“We’ve made significant changes to prevent this from happening again, including updating our website and communications so New Zealand customer rights are clear, improving training and strengthening our claims review process.”
