Etihad Airways revises refund policy after ACCC pressure to include Australia departures

Etihad customers can elect to receive a refund for a cancelled flight, even if they previously accepted a flight credit.

Etihad is fulfilling its obligations under its conditions of carriage by offering refunds to thousands of Australian customers with cancelled flights. Picture: Etihad

Gulf carrier Etihad Airways has revised its refund policy following pressure from Australia’s consumer watchdog.

The airline’s policy in March did not offer refunds to customers with flights scheduled to depart from Australia but that policy was updated at the beginning of June. Etihad was already offering refunds for flights departing from a number of other regions, including the US and European Union at that time.

But following engagement with the ACCC’s COVID-19 Taskforce, Etihad revised its policy further to offer refunds to all consumers in Australia who had purchased flights, regardless of where their flight was scheduled to depart from.

The Australian Competition and Consumer Commission welcomed the change on Tuesday.

“The protections of the Australian Consumer Law, which extend to all corporations carrying on business in Australia, prohibit making false or misleading representations about a consumer’s right to a refund, including their contractual refund rights,” ACCC chair Rod Sims said.

“We are pleased that Etihad is fulfilling its obligations under its conditions of carriage by offering refunds to thousands of Australian customers with cancelled flights.

“Etihad’s revised policy, and its decision to also offer refunds to consumers who weren’t previously advised of their right to a refund, should serve as a model for other airlines.”

Etihad will contact customers to inform them that they can elect to receive a refund for a cancelled flight, even if they previously accepted a flight credit, the ACCC said.

The change to the Etihad’s refund policy comes after Qantas was pressured by the ACCC into providing refunds to customers who only received travel credits in return for cancelled or suspended flights.

“We want to ensure customers are aware that when Qantas suspends or cancels flights due to travel restrictions and fails to provide them with an acceptable alternative flight, they are entitled to a refund,” Mr Sims said in June.

Virgin Australia has not been required to refund passengers for cancelled flights because the airline was in administration.

Industry body the Australian Federation of Travel Agents welcomed the move.

“Since the pandemic began, travel agents have been working around the clock on behalf of their clients using their experience and connections to navigate the complex and often frustrating process of refunds and credits,” AFTA chief executive Darren Rudd said.