19 March 2007

"Bumped" and Delayed Passengers Can Seek Compensation

Domestic airline passengers who have been "bumped" off flights due to overbooking by airlines or been delayed can seek compensation from the airline says Consumer Affairs Minister Judith Tizard.

"I asked the Consumer Affairs Ministry to investigate this issue and there's good news for consumers who've checked in on time but have been "bumped" or delayed," says Judith Tizard.

"Under the Civil Aviation legislation, consumers are entitled to compensation from the airline if they are delayed - unless the delay is caused by factors beyond the airline's control, such as weather conditions, or safety issues."

"Delay includes being "bumped" on overbooked flights, and also covers flights that have been delayed or cancelled because of internal airline issues, such as rostering."

Judith Tizard says, "Airlines are liable to pay compensation to passengers – up to 10 times the price of their ticket, or the actual cost of the passenger's delay, whichever is the lesser."

The compensation would cover loss (e.g. missing a game or concert) or extra costs incurred by delays (e.g. lunch, taxi fare or missed connection).

"Consumers who have been "bumped" or delayed should claim compensation from the airline. If the airline refuses to pay compensation then consumers can take their claim to the Disputes Tribunal."

Judith Tizard said she was also unhappy to discover that both Air New Zealand and Qantas referred to out of date legislation in their terms and conditions of travel, stated on their tickets and website. This may have led consumers to believe they did not have any rights in response to this issue.

"I would like to see these airlines clearly state and publicly display their obligations to their passengers – not just passengers obligations to the airlines. These contracts work both ways – passengers have rights too!"

Further Information

• The airline's liability for costs comes under the Civil Aviation Act (Part 9B)
• Disputes tribunals are quick, informal and inexpensive forums where disputes are heard by a referee who will either help you to come to your own solution or will determine your dispute. Any ruling they make is binding and will, if necessary, be enforced by the Courts. See the Disputes Tribunal [link to MoJ website] or contact your Community law centre or Citizens Advice Bureau.