Title: Jetstar Faces Class Action for Allegedly Issuing Vouchers Instead of Refunds During COVID-19 Pandemic
Introduction:
Jetstar, an Australian airline, is currently facing a class action lawsuit in the Federal Court of Australia. The legal firm, Echo Law, alleges that Jetstar breached the law by issuing vouchers instead of refunds to passengers for cancelled flights during the COVID-19 pandemic. This article delves into the details of the case, exploring the legal obligations of airlines, the impact on customers, and the potential consequences for Jetstar.
Legal Obligations and Customer Impact:
Echo Law contends that Jetstar was legally obligated to refund customers for cancelled flights during the pandemic. Instead, the airline provided customers with travel credits or vouchers that were subject to significant restrictions. The law firm argues that these vouchers were of lower value to customers compared to the refunds they were entitled to receive. Consequently, affected passengers are encouraged to join the class action, with the possibility of receiving compensation even if they have already used their flight credits.
Jetstar’s Response:
Jetstar has responded to the allegations, stating that they are reviewing the claims made in the class action. The airline highlights that it removed expiry dates for COVID vouchers, allowing them to be used indefinitely. Furthermore, these vouchers are multi-use, meaning they can be utilized for multiple bookings and individuals. However, while the expiry dates were removed, the vouchers remain non-redeemable for cash.
Legal Considerations and Breach of Contract:
Echo Law maintains that Jetstar’s decision to issue vouchers instead of cash refunds financially benefited the airline at the expense of its customers, constituting a breach of contract. The law firm asserts that Jetstar engaged in misleading or deceptive conduct, violating Australian Consumer Law and engaging in unconscionable behavior. Andrew Paull, a partner at Echo Law, emphasizes that Jetstar should have promptly returned customers’ money when flights were canceled, rather than pushing them to hold restricted travel credits.
Jetstar’s Profitability and Customer Interests:
Echo Law raises concerns about Jetstar’s prioritization of profits over customer interests. While the airline portrays itself as a values-driven, low-fare carrier committed to enabling more people to fly, it is a highly profitable subsidiary of the Qantas Group. Echo Law argues that Jetstar’s decision to impose travel credits on customers, contrary to their agreed-upon terms and conditions, reflects a contradiction between the airline’s public image and its actions during the pandemic.
Class Action Goals and Compensation:
The class action seeks to secure outstanding refunds for affected passengers, compensation for the discrepancy between the value of travel credits and cash refunds, and additional damages such as interest and consequential losses. Echo Law’s previous class action against Qantas for similar issues during the pandemic strengthens their case against Jetstar, as they argue that Qantas customers were also entitled to refunds instead of flight credits.
Conclusion:
Jetstar’s alleged issuance of vouchers instead of refunds during the COVID-19 pandemic has led to a class action lawsuit. Echo Law asserts that the airline’s actions breached legal obligations, deceived customers, and prioritized profits over customer interests. Affected passengers are encouraged to join the class action to potentially receive compensation. This case highlights the importance of airlines adhering to their contractual obligations and prioritizing customer satisfaction, especially during challenging times such as a global pandemic.
