KEY POINTS:
A family who won a lifetime of free flights to Australia from Freedom Air have rubbished claims by Air New Zealand that it is trying to resolve the issue.
And they are angry that the soon to be defunct airline has enjoyed a phoenix-like rebirth under a new name, Zeal 320 Ltd with no legal requirement to honour Freedom Air's promise.
A consumer watchdog says an offer Air NZ made to the family is pathetic.
Zeal 320 Ltd is registered with Companies House as being the successor to Freedom Air Limited, and its address is Air New Zealand House.
Celia Watkins, who hit the jackpot in 2001, is considering taking Air New Zealand to court after it offered her $1200 worth of free air miles instead of the flights.
The 38-year-old nurse from Stanmore Bay, Auckland, was told a lifetime of free flights lasted only for the lifetime of Freedom Air, which will cease flying from the end of next month. The family have taken four transtasman trips on the prize.
Air New Zealand official Stephen Jones said he was continuing to work with the family to try to reach a satisfactory resolution.
But last night Mrs Watkins' husband Tom Hallam, a teacher, said they had heard nothing from Air New Zealand for several months.
"The last we heard from Air New Zealand was in December when Stephen Jones rang us and said they were winding the airline up and the prize was not transferable. There's been no word since.
"The alternative offer of air points was insulting considering the size of the original prize. We are not being greedy, but they are a big airline who make millions in profit. They are still part of Air New Zealand and the parent company should take some responsibility and look after us.
"We would even settle for a return trip to London with our two children as an alternative as we could never afford a trip like that. All we are asking is to be treated fairly."
Mr Jones told the Herald there would be no Freedom Air services after March 29, and the Freedom brand would no longer be used.
"Air New Zealand services will be increased to fill some of the gaps where Freedom Air services had operated, however, it will not take on some of the poorer performing routes including flights to and from Palmerston North."
Consumer NZ chief Sue Chetwin said failing to honour a prize offered in a competition was a breach of the Fair Trading Act.
"You would think Air New Zealand would try to negotiate some sort of deal with them to make the whole thing go away."
She described the offer of 1200 air points as "pathetic".
