A new Civil Aviation Bill could force airlines to be more forthcoming when communicating passenger rights. Photo / Michael Craig
A new Civil Aviation Bill could force airlines to be more forthcoming when communicating passenger rights. Photo / Michael Craig
In a perfect storm of post-pandemic demand, reduced staff, crew shortages and literal storms, many Kiwi travellers have had their flights delayed or cancelled altogether in recent months.
What has happened next (or more accurately, not happened), has been problematic, according to Consumer NZ CEO Jon Duffy.
According to Duffy, people have been given "misleading, inaccurate information about what their rights were or no information at all".
"Consumers are actively being misled. You just need to jump on Jetstar's website right now and they say that accommodation costs are capped at $150", something Duffy described as "blatantly misleading".
Even when airlines have anticipated disruption and warned passengers they could be bumped from a flight, as Air New Zealand recently did, Duffy said there was still a lack of transparency.
"They got on the front foot but they also neglected to say 'hey these are your rights if that happened'."
Consumer NZ CEO Jon Duffy says consumers have been actively misled about their rights when a flight is delayed or cancelled. Photo / Supplied
What are your rights?
Typically, when you purchase goods or services, your consumer rights are covered under the Consumer Guarantees Act. However, things are different when it comes to aviation.
"The CAA is the law that governs consumer rights in the aviation space," Duffy said, adding that, while the Consumer Guarantees Act still applies in airline travel, it can be overridden by the CAA.
This talk of law and legislation may seem irrelevant but becomes key for the average person when their flight is cancelled or delayed.
It's in these moments when the CAA comes into play, as it obligates airlines to compensate travellers if a disruption is within their control.
The issue is that many travellers don't know their rights and are vulnerable to accepting inaccurate information.
Civil Aviation Bill seeks to strengthen consumer protections
Fortunately, change is on the horizon in the form of the Civil Aviation Bill, which is being led by Manatū Waka Ministry of Transport.
Introduced in 2019, the bill proposes about 400 revisions to the CAA, including some related to passenger rights.
"We heard from submitters about consumer protection requirements, and we did make changes to the draft bill to support greater disclosure of airlines' responsibilities to their passengers," a spokesperson said.
One of the submissions was from Consumer NZ, which expressed concern that the bill did not prescribe requirements for the disclosure of information about passengers' rights.
As a result, Te Manatū Waka included a revision that would give the Governor-General the power to demand airlines tell passengers their rights when a disruption occurs.
The catch, according to Duffy, is that change will only happen if the minister of transport uses that power.
"Once the law passes then the minister needs to recognise there's a problem and we'll certainly be making it well known that airlines should be forced to provide better disclosure to travellers at the point a disruption happens."
Other submissions proposed airlines must offer a refund instead of credit when a flight is cancelled, or be banned from creating policies that suggest they aren't liable for compensation.
Another submission suggested establishing set amounts of compensation for different lengths of delay.
Te Manatū Waka said these ideas had merit but were ultimately rejected.
"Extensive policy work would be required to investigate if additional protections are needed in the New Zealand context and what that might look like."
Consumer protections would still be covered by the existing legislation.
"In the Civil Aviation Act, if a delay or cancellation is within the airline's control, a passenger is entitled to damages (compensation) of up to 10 times the cost of the ticket, or the actual costs associated with the delay, whichever is less," they said.
In the US, the Department of Transportation (DOT) have faced similar challenges with holding airlines to account and helping travellers understand what their rights are.
After Transportation Secretary Pete Buttigieg openly criticised airlines about the "unacceptable" level of disruption travellers have faced this summer, the department launched an online tool to educate travellers about what they are entitled to if this happens.
The interactive dashboard launched on September 2 on DOT's Aviation Consumer Protection website. It provides clear information about what 10 major US airlines offer when a flight is cancelled or delayed.
These airlines and their regional operating partners account for about 96 per cent of domestic scheduled passenger air traffic, according to DOT.
🚨NOW AVAILABLE🚨
Our new Airline Customer Service Dashboard gives air travelers transparency on which airlines will take care of you by providing food vouchers or a hotel overnight if your flight is delayed or canceled because of the airline. https://t.co/OINlfanjJPpic.twitter.com/Qmjcxz5HoR
Buttigieg said this was because customers deserved to be clearly informed about their rights.
"When passengers do experience cancellations and delays, they deserve clear and transparent information on the services that your airline will provide, to address the expenses and inconveniences resulting from these disruptions," he said.
Under current DOT regulations, airlines must offer customers refunds for cancelled flights. However, delays don't have the same strict regulations. As a result, it can be difficult to find out what you are owed, even though airlines are federally required to include this information in their Customer Service Plans.
At a minimum, if the delay is within an airline's control, DOT asks airlines to provide accommodation for passengers who must wait overnight at the airport and meal vouchers for delays over three hours.
Regardless of the reason or extent of disruption, Buttigieg said the Department expects airlines to "provide timely and responsive customer service during and after".
