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Slaters investigating class action into pandemic-inspired travel vouchers
Major airlines, including Qantas and Jetstar, may have breached legal obligations by offering travel voucher schemes that disadvantage customers, says Slater and Gordon.
Jerome Doraisamy
Plaintiff firm Slater and Gordon is looking into launching actions on behalf of tens of thousands of Australians who the firm says are being “short-changed” by the airlines, travel agents and tour companies, in the wake of flight disruptions brought about by the global coronavirus pandemic.
According to Slaters practice group leader Andrew Paull, affected customers may be able to participate in a class action against their travel providers.
The firm has spoken with holidaymakers, he said, who “have been left thousands of dollars out of pocket and holding vouchers that they may never be able to use”, while others, he continued, feel they were forced to cancel ahead of airline announcements to get back a portion of their fares, only to be hit with hefty cancellation fees.
“We understand that everyone is doing it tough at present, including the major airlines and travel companies, but that doesn’t give them an excuse to take advantage of their customers. Nor is it acceptable for Qantas shareholders to treat the money it owes to ordinary Australians like its own,” Mr Paull said.
“We believe cash refunds should be returned to customers, who almost certainly need that money right now, rather than in bank accounts gathering interest for airline shareholders. We call on businesses like Qantas and Jetstar to do the right thing and honour their obligations to their customers. If they won’t do so, then it’s only reasonable for those customers to look at recovering their money through a class action.”
In a statement, Slaters outlined that airlines have been: issuing ticket holders on cancelled flights with travel vouchers rather than cash refunds (in potential breach of airline conditions), relying on blanket “no refund” clauses in its terms and conditions in spite of ACCC warnings that such clauses are not always binding, and convincing customers to exchange their tickets for restricted travel vouchers.
Moreover, the airlines have continued to offer and accept payment for international flights, the firm said. This includes flights to Bali, departing in June, despite government advice that current travel bans will remain in place “for the long-term”.
The firm understands that “similar practices are being undertaken by Qantas and Jetstar, as well as many other airlines, travel agents and cruise companies”, it posited.
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Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly and HR Leader. He has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. In June 2024, he also assumed the editorship of HR Leader. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of the Minds Count Foundation.
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