ACCC seeks answers from Qantas, Jetstar, Virgin Australia and tigerair over cancellation surge

NEARLY 3000 extra Australian domestic flights have been cancelled, leaving thousands upset. Now the ACCC want Qantas, Virgin, Jetstar and Tiger airlines to explain why.

EXCLUSIVE

NEARLY 3000 extra flights were cancelled in the past year and the consumer cops want airlines to explain why.

Meanwhile, advocates are demanding a compensation scheme is needed for stranded passengers.

As airline profits surge, more and more Australians are having their travel plans thrown into chaos by cancelled and delayed flights.

About 10,800 domestic flights — or nearly two per cent of scheduled services — were cancelled in 2017. The long-run average is 1.4 per cent. If airlines had managed to meet that last year, only 7960 flights would have been scotched.

Airlines’ on-time departure performance in 2017 was also worse than historical norms.

Now the ACCC is asking questions about whether cancellation explanations given to passengers are bogus excuses for cutting unprofitable flights when insufficient seats have been sold.

MORE: How to fight the airlines for compo

QantasLink had the worst cancellation rate in 2017; Jetstar was best. Picture: Matt Loxton

In December the ACCC said in a airlines report that some consumers had raised concerns “events within an airlines control have been described as being ‘outside their control’. They speculate that an airline’s decision to cancel a flight due to low passenger numbers has been presented as being cancelled for a different reason. This issue is of significant concern to the ACCC and we will be making specific inquiries of the Airlines to examine it further”.

An ACCC spokesman yesterday said “we are continuing to engage with the airlines to determine options to address our concerns”.

Julia Lines — who settled more than 3000 disputes between passengers and carriers as the Airline Customer Advocate from 2012 to 2017 — told News Corp Australia there was a need for a capped compensation scheme.

Ms Lines, who now runs UNSW’s student conduct and integrity unit, made a submission in 2016 to the review of the Australian Consumer Law in which she said there was a “compelling argument for reasonable compensation … for Australian consumers affected by flight delays and cancellations caused by an event within the airline’s control, and overbookings”.

Former Airline Customer Advocate Julia Lines. Picture: News Corp Australia

The ACL review did not deliver any such compensation scheme.

Ms Lines told News Corp Australia yesterday: “Although the status quo remains, I’m confident consumer advocates will continue to campaign for a capped compensation scheme for affected passengers.”

That charge is being led by consumer group Choice, which has made the pitch directly to Federal Treasury in its 2018-19 pre-Budget submission. It wants a scheme similar to Europe’s, where passengers whose flight arrives three or more hours after schedule can claim up to €600 ($960) for meals, accommodation and telephone calls. The delay or cancellation has to be for reasons within the airline’s control, such as mechanical or staffing issues. Weather events wouldn’t be covered.

Choice spokesman Tom Godfrey said “this is really a policy problem that needs fixing”.

It also wants the Airline Customer Advocate abolished and replaced with an ombudsman.

“In our experience, the compensation you might get varies from airline to airline and traveller to traveller, which is why we’re calling for an ombudsman and a fixed compensation scheme, to introduce some clarity and consistency to the system,” Mr Godfrey said.

The Customer Advocate is funded by its participating airlines — Qantas, Jetstar, Virgin, Tiger and Rex — and, while it acts independently, Mr Godfrey said it “does not have independent power to make decisions that affect the participating airline’s response” to a complaint.

The current Advocate did not respond to repeated requests for comment.

Australia’s largest airline Qantas — which owns Jetstar — made a gross profit of $5.4 million a day in the first half of 2017-18, its best-ever result. The bonanza was built on surging earnings from its domestic operations. Over the same period Virgin Australia — which owns Tiger — produced its best financial performance in a decade.

Flight cancellations in Australia and the worst routes to or from Melbourne. Picture: Supplied

‘IT’S NOT FAIR’

Katrina Bryce and partner Joel Ghilardi’s were about to board a Jetstar flight from Sydney to Melbourne three weeks ago when Ms Bryce received a text — the flight had been cancelled.

Apparently this was due to a bird strike, which Jetstar (unlike some airlines) classifies as an engineering disruption and therefore within its control.

It was the start of the busy Formula 1 weekend so no alternative flight available that day.

While they waited in line to ask what would happen next, Ms Bryce got an email saying they could reclaim up to $150 towards that night’s accommodation because they lived more than 50km from the airport.

This in itself is interesting because Jetstar’s official conditions of carriage say “we will not be responsible for paying any costs or expenses you may incur as a result of the changed time or cancellation”.

Katrina Bryce and partner Joel Ghilardi had their flight cancelled. Picture: Tim Pascoe

When they reached the front of the service country queue they were told they could claim even more — up to $250 for the night’s accommodation.

They say nothing was provided in writing. Jetstar says it made a note in its system.

Relying on what had been said to them, the pair spent $219 on a nearby hotel room.

The next day they returned to the airport only for their flight to be delayed.

Eventually they made it to Melbourne.

Later, when they sought reimbursement, they say Jetstar told them it could only give them back $150.

“It’s not fair that as a customer we get our flight cancelled on us, it ruins our time away as we didn’t get time to do all the things we wanted to do, to be told we should have had travel insurance for a one hour trip to Melbourne and then to top it off we get told we would be paid less than was stated by your staff on the day,” Ms Bryce said.

Mr Ghilardi said: “Who pays for travel insurance to go to Melbourne?

“Imagine if you walked into a hotel having paid for your room only to be told the bathroom has flooded and you can’t stay here tonight. That’s effectively what the are airlines are doing,” he said.

After News Corp Australia contacted Jetstar the couple’s Sydney expenses were covered — but not the cost of their lost accommodation in Melbourne.

Originally published as ACCC seeks answers from Qantas, Jetstar, Virgin Australia and tigerair over cancellation surge