How Is Eveyone OK with Flight Credit?

archieduh on 27/09/2022 - 11:56

Airlines are cancelling flights left, right, and centre.
Seems in most (or all?) cases they are offering flight credits and not refunding money.
In 2020-21, I was fine with it as we were all suffering so felt supporting these companies was looking out for them.
But its late 2022 now and it seems this has become a trend.

In my case a flight was cancelled in Jan 2021 and was converted to a credit expiring in Jan 2023.
I booked a flight now which again got cancelled, but the airline is refusing to extend the expiry let alone process a cash refund.
It's textbook fraud and not just unethical, and if I had the time I would pursue this further.

It's straight up illegal if the airline cancels the flight (not you) and do not return your money.
Do we need to shake up the duopoly of Qantas/Jetstar & Virgin? The attitude of their customer service is appalling if you compare to the rest of the world.
EU mandates compensation on delays and has strict guidelines.

Parking my situation aside, I am just amazed how has the general public accpted this as status quo.
The OzB classifieds have a ton of posts pople selling off credit on a discounted price.
I spoke to a few colleagues who had flights cancelled, just resigned to the fact, that it's not worth the hassle for "a few hundred dollars".
So wanted some thoughts from people here, especially the penny pinchers like me who get excited by $5 off on $50 gift card offers.
How has this become the norm? Isn't there something we can do about it?

Travel Airfare Flight Credit

Comments

  • capslock on 27/09/2022 - 12:00
    +1

    If you paid with a flight credit then it is reasonable to expect that they refund you in flight credits.

    I don't agree that airlines are still not giving cash refunds for new bookings paid in cash if the airline cancels the flight.

    • archieduh on 27/09/2022 - 12:04

      If you are looking at my issue (which is not what I wanted to post about), then flight credit is reasonable but the expiry is not.
      The credit in Jan 2021 was to expire in Jan 2023, I accepted that and not cash refund as they were doing 2 year expiry then.
      Now when the flight has cancelled AGAIN - the refunded credit is again the same expiry and does not rest to the default expiry of 12 months.
      In my case if they issues a flight credit back again expiring in July 2023 (12 months from flight cancellation), I would not have had a problem.

      let's say i book something for Dec 2022 with this credit and they cancel the flight again, then I will again have credit expiring in Jan 2023 and not Dec 2023. That's fraud.

      • jv on 27/09/2022 - 12:10
        +3

        i agree.

        if they cancel again, it should be a new credit with a new expiry date.

    • archieduh on 27/09/2022 - 12:09
      +2

      Sorry I just accidently neg'd a comment. Argh how do I undo it? I hate it. I always appreciate someone taking the time to comment mate. Sorry about that.

      • ESEMCE on 28/09/2022 - 16:52

        Just hit the plus button

  • Hybroid on 27/09/2022 - 12:01
    +1

    Part of the problem might be there's no clear consumer rights on this like there is in the EU. Here's the ACCC page on it:

    If something goes wrong, and your flight is delayed or cancelled, you may be entitled to a refund or replacement depending on the circumstances, including:

    • the length of the delay
    • the reason for the delay or cancellation
    • whether the airline was able to place you on another flight within a reasonable time.

    https://www.accc.gov.au/consumers/health-home-travel/flight-…

    That's very vague and doesn't provide any details or assurety to people. Maybe they're getting away with the "replacement" clause by offering flight credit for you to book something else and hence have satisfied legal requirement.

    Whereas in the EU, it's quite clear:-

    Cancellation occurs when:

    • your original flight schedule is abandoned and you are transferred to another scheduled flight
    • the aircraft took off but, was forced to return to the airport of departure and you were transferred to another flight
    • your flight arrives at an airport which is not the final destination indicated on your ticket

    If your flight is cancelled you have the right to choose between reimbursement, re-routing or return.

    If you were informed of the cancellation less than 14 days prior to the scheduled departure date, you have a right to compensation.

    https://europa.eu/youreurope/citizens/travel/passenger-right…

    They do tell you to contact your state's consumer protection agency so maybe that's your next step.

    • archieduh on 27/09/2022 - 12:07

      Thanks, may do that for my case. All I wanted was the credit re-issued to have an expiry that is usable and not "original" expiry.

      They do tell you to contact your state's consumer protection agency so maybe that's your next step.

      But I am just curious, how this has become the norm and noone seems to be pursuing it and just selling off credits on discounts.

  • holdenmg on 27/09/2022 - 12:19
    +1

    Rex offers refunds

    Refund Requests
    If a flight has been cancelled by Rex, the passenger is entitled to a refund, credit or transfer to the next available flight. Please contact our Customer Contact Centre on 13 17 13
    https://www.rex.com.au/FeedBack/ShowFAQ.aspx?aid=145#:~:text….

    • archieduh on 27/09/2022 - 12:20

      Will def give them a try next time.

  • Benoffie on 27/09/2022 - 13:11
    +4

    Not happy with a flight credit. I had $1000 credit with Qantas due to no fault of my own and it's taken 2 years to use it up. And I couldn't take advantage of cheaper flights to do it. Refunds should be mandatory.

  • fantombloo on 27/09/2022 - 21:46
    +1

    I had a Jetstar flight cancelled a couple of months ago. I just refused the credit and stayed on the phone till they gave me the refund. Took 30min max, most of which was waiting for them to "check with the manager" a few times.

    • archieduh on 28/09/2022 - 17:11

      Yeahhh.. stick it to them.
      I regret accepting flight credit in 2021.

  • ESEMCE on 28/09/2022 - 17:05
    +1

    I raised a complaint to the Airline Customer Advocate after QANTAS cancelled my flights to Alice Springs and ended up wanting to fly me to Sydney (with no notice) with Flight Credit only.
    The official response was {paraphrasing} " We will always offer the option of a Refund, Alternate flights or Flight Credit" (which is not actually what occurred) and case was automatically closed with no recourse available.

    It's a bullshit system built by the airlines for appearances only.

    Nobody has the time or money to take them to court which is the only way for change to occur outside of our Pollies actually doing something and changing the law.

    • archieduh on 28/09/2022 - 17:13

      Generally the policies in Australia are really in favour of consumers. Why not have EU like system here..

  • naruto128 on 28/09/2022 - 17:12
    +1

    I was given a credit voucher by AirAsia that is very hard to use since each flight only accepts a certain number of vouchers.

    • archieduh on 28/09/2022 - 17:13

      Whoa that's next level. Limiting what you can use.

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