Marinda and James du Toit were due to fly from Auckland to Dunedin on November 14, 2022, on flight NZ677. However, a chain of delays left them stranded in Auckland overnight and, more than four months later, still $479.96 out of pocket.
After a technical issue forced the passengers to disembark, they were boarded onto a replacement plane, only to be told it could not depart as, by this point in the evening, staff on board would exceed their allowable hours of work.
“We were left stranded at the airport with no accommodation or food,” said Marinda. Air New Zealand could not arrange accommodation but did hand out information leaflets explaining what customers were entitled to under the Civil Aviation Act.
This states that, if a flight is delayed or cancelled for reasons within the airline’s control, passengers are entitled to compensation of up to 10 times the cost of their ticket, or the actual cost of delay, whichever is lower.
“We were informed that our expenses would be covered up to a maximum amount and that we should email our receipts to refunds@airnz.co.nz,” Marinda said.
Tired and frustrated, the du Toits booked the closest hotel and spent the night in Auckland before their replacement flight the following day.
Marinda said they were better off than other travellers, who had to spend the night in the airport.
“There were passengers that had no money and no place to go until they could fly out,” she claimed. “They were crying and desperately phoning around for help.”
On November 16, a day after returning home, Marinda emailed receipts that totalled $479.96 for their hotel room, taxi, food, airport parking in Dunedin and accommodation for their cat.
An email confirmed the refund submission had been received and noted it would take approximately 8 weeks to process the funds, Marinda claimed.
At the time of writing, they are yet to receive their reimbursement from Air New Zealand.
Air NZ working hard to process an ‘unprecedented’ number of refund requests
After 11 weeks, Marinda followed up with another email in January, and on March 6, the airline replied, offering “sincere apologies” for the delay and confirmation the refund had been processed.
“Unfortunately, with schedule change & weather disruptions and staff shortage, we are experiencing both high email and call volumes at this time and do appreciate your patience,” it continued.
According to the airline’s chief customer and sales officer Leanne Geraghty, most refunds for passengers do happen automatically.
“If a customer has booked a refundable flight and needs a refund, it’s an automated process,” she told Herald Travel.
However, reimbursements for costs accrued due to delays are more complex and require more attention.
“In situations where a customer is seeking a refund that doesn’t happen automatically, their request has to be assessed and then the payment has to be made into their account,” Geraghty explained.
“That’s a manual process and the unprecedented volume of refund requests has grown due to the Auckland floods and Cyclone Gabrielle, and this has meant there’s been a significant delay in processing some requests.”
According to Marinda, this isn’t a good enough reason to leave Kiwis out of pocket.
“We know that flights are cancelled and that Covid and weather phenomena have caused consternation but proper staffing to service clients and getting funds to them which they are entitled to should not be an issue,” she said.
“My concern really is all other Air New Zealand passengers and the struggles that they are going through,” she said.
“Not everyone can afford to be out of pocket for any length of time.”
What are my rights when it comes to delayed or cancelled flights?
The Civil Aviation Act states that, if the disruption is the airline’s fault, passengers are entitled to compensation of up to 10 times the cost of their ticket or the actual cost incurred by the delay, whichever is lower.
Issues considered within an airline’s control include; staffing shortages due to sickness, mechanical issues and overbooked flights.
This isn’t an excuse to spend large on fancy restaurants, luxury hotels or clothing, but passengers should be covered for reasonable expenses such as taxis to and from the airport, accommodation or parking.
How quickly does an airline have to refund my expenses?
The CAA states how much money a traveller is entitled to but does not set out how quickly it must be repaid according to ConsumerNZ.
“This legislation does not specify a timeframe for processing refunds or impose a requirement for refunds to be processed in a ‘reasonable time’,” said a spokesperson.
However, it is an offence under the Fair Trading Act to mislead consumers about any guarantee, right or remedy available under the consumer guarantees act, according to the Commerce Commission.
“If a business states that a refund will be processed within a certain timeframe but that is incorrect, or it gives inaccurate reasons for a delay in processing a refund, this could, depending on the circumstances, be misleading conduct and a potential breach of the FTA,” said a spokesperson. However, only a court Could conclusively determine this, they added.
The Commerce Commission could not comment on the du Toit’s experience but said that, when consumers are owed a refund, the expectation is this is done swiftly.
“We would expect that a business that is required under the CGA [Consumer Guarantees Act] to provide a refund where that is applicable, would do so promptly,” said a spokesperson.
It’s been weeks/months and I haven’t received a refund, what should I do?
If you’re owed a refund for a cancelled flight and purchased the ticket on a credit or debit card, ConsumerNZ recommends going to your bank.
“If the airline hasn’t refunded the fare within 6 weeks, the consumer could contact their bank and ask for a chargeback,” they said.
If, like the du Toits, you’re owed reimbursement for costs under CAA (which is not an automated refund for airlines like Air New Zealand), things get a little more difficult.
Step One - Be prepared
The first step, according to Consumer Protection, is to know exactly what you are entitled to, have all necessary evidence and documentation and know your ideal outcome.
Step Two - Contact the airline
Then, you should contact the airline directly via phone, email or in person. Be direct and clear about the issue, stay civil and be clear you are issuing a ‘complaint’. If the airline sends an auto-reply about extended wait times, it can be worth being patient, as solving the issue directly with the airline can be more efficient.
Step Three - Claim through insurance
If you don’t receive a response, the best course of action is to try claiming any costs through travel insurance, if you have it. From here, your insurer will likely be responsible for communicating with the airline.
Step Four - Seek further assistance
At this point, if you have not already, it’s worth seeking assistance from Consumer Protection, the Citizens Advice Bureau or a local Community Law Centre.
This step may seem intimidating but these organisations are dedicated to providing helpful information and advice on how to claim back money you are owed.
