Jetstar Faces Class Action Lawsuit Over Cancelled Covid Flights
Jetstar Airways, a subsidiary of Qantas, is facing a class action lawsuit alleging it unlawfully withheld refunds from customers whose flights were cancelled during the COVID-19 pandemic. The legal action, spearheaded by Echo Law, was served on the airline on Wednesday morning.
Echo partner Andrew Paull accused Jetstar of prioritising profits over its customers' interests. He claimed that the airline "pushed" customers into accepting travel credits worth hundreds of millions of pounds, despite this being a departure from the airline's original terms and conditions. Paull asserted that Jetstar should have returned customers' money promptly upon cancelling their flights.
"The right thing for Jetstar to do when it cancelled all those flights was to return its customers' money without delay," Paull stated.
Echo is also pursuing a separate lawsuit against Qantas, the parent company, launched last year regarding its refund policy for cancelled flights. Both cases centre around the airline's use of travel credits instead of direct refunds.
The Jetstar class action is being financed by litigation funder Court House Capital. A Jetstar spokesperson said the airline would review the legal claims. They highlighted that expiry dates for COVID-related vouchers were removed last year, allowing customers to use them indefinitely. These vouchers can be applied to multiple bookings and for multiple individuals.
Echo Law argues that the use of travel credits, rather than refunds, lacked transparency and deviated from the contractual terms of the ticket purchases. They further claim that Jetstar engaged in "unconscionable conduct" that breached consumer law.
Paull maintains that the airline financially benefited from holding onto the money originally intended for cancelled flights. "It now needs to be held accountable and refund that money with interest," he stated.
Echo Law alleges that while customers were unable to travel, Jetstar enjoyed significant financial advantages from retaining hundreds of millions of pounds in customer payments, including interest gains and reduced borrowing costs. They believe this practice is unfair and unlawful.
The legal battle highlights the ongoing debate surrounding airline refund policies during the pandemic. Many airlines, including Jetstar, opted for travel credit schemes instead of direct refunds, a practice that has drawn criticism from consumer groups and legal professionals. The outcome of this class action lawsuit could set a precedent for future legal challenges against airlines regarding their handling of flight cancellations and refunds.
