Virgin Australia needs crash course in good service

Virgin Australia customers say the airline’s recovery risks being undermined by poor customer service and a rigid no-refund policy.

Caitlin Smith was promised a refund but after months of frustration all she was offered was a 30-day credit voucher. Picture: John Feder

Virgin Australia customers say the airline’s recovery from ­administration and the COVID crisis risks being undermined by poor customer service and a rigid no-refund policy.

Frustrated by endless call-waiting queues and no response to emails, travellers have taken to social media in huge numbers to contact the embattled airline.

Many have waited months to receive an answer about their cancelled or changed flight, only to be told the only “refund” available was a travel credit that would have to be used before August 15.

Sydney account executive Caitlin Smith said she first contacted Virgin Australia in March about a refund for flights booked for April, and was told it would take 30 days to process.

“In that time they went into administration, and I still haven’t seen my money despite being told I was entitled to a full refund,” she told The Australian.

“When I went back to them, they said ‘we’re not doing anything because of administration’.”

After more toing and froing Ms Smith was finally able to speak to a customer service officer on Tuesday, who offered her a travel credit that would have to be used by August 15.

Brisbane teacher Aidan Cald­well faced similar challenges when he sought a refund for flights to Sydney for an event that was later axed.

“I was getting nowhere on the customer service number, and when I emailed them I was told to call the same number,” Mr Cald­well said. “Eventually, I resorted to Twitter, which at least got a ­response but it hasn’t brought me any closer to a resolution.”

He said he was not so upset about losing $200 for the flights but he felt very let down by the customer service. “In the same ­period, I’ve had to deal with Korean Air and Singapore Airlines for a cancelled school trip, and both were more responsive and provided full refunds,” he said.

“I found Virgin to be a good airline in all their customer service dealings prior to this, but now I get the feeling they’re trying to block me off as a customer.”

Another traveller who did not want to be named said she had almost given up on getting her $718 back for flights to Canberra. “We tried to use the travel credit offered but the only flights available meant we would have had to overnight in Brisbane,” she said.

“If they want us to continue flying with Virgin they are going to have to dramatically improve their customer service.”

Aviation lawyer Joseph Wheeler said the limited period for using travel credit vouchers appeared “starkly unfair and not what passengers signed up for”.

“Even in the context of the ­administration, I think more would need to be done to preserve customer loyalty if the airline is to make a comeback,” he said.

Administrators Deloitte have previously revealed the airline received 340,000 requests for refunds between March 1 and April 30 after cancelling 65,000 flights.

On Wednesday a Virgin Australia spokeswoman said the travel credits issued for flights up to August 15 would be carried forward under the ownership of Bain Capital.

“The details of the revised credit policy and impact for customers are being worked through and will be communicated with affected customers in due course,” said the spokeswoman.

An Australian Competition and Consumer Commission spokesman said in the light of the administration, Virgin Australia’s policy for providing travel credits in the place of refunds was acceptable.

“The ACCC encourages consumers to review the information about conditional travel credits on Virgin’s website and familiarise themselves with these conditions,” he said.