Qantas bows to angry customers and overhauls its credit policy after coronavirus forced thousands of travellers to cancel their flights
- Australian airline gives way to mounting pressure and revamps credit scheme
- Travellers who cancelled flights because of COVID-19 now have more 'flexibility'
- Scrapped International trips can now be changed to multiple interstate flights
- But a major law firm wants travel industry to provide cash, no credit vouchers
- Here’s how to help people impacted by Covid-19
Qantas has changed its credit policy after customers who had their flights cancelled due to the coronavirus pandemic complained.
Customers will no longer be forced to use credit for cancelled flights towards an airfare of the same or greater value.
Instead, the national carrier will allow passengers to book multiple trips of lesser value, while customers who are booked to travel on Qantas and Jetstar flights will be able to split their travel credits from June across multiple future bookings.
Returning overseas travellers are pictured in Brisbane before they head to a mandatory 14-day quarantine period on March 30
Qantas has changed its credit policy after customers who had their flights cancelled due to the coronavirus pandemic complained
'We have listened to feedback from customers and are making changes to our backend systems so these vouchers can be used multiple times,' a Qantas spokesperson said on Tuesday.
'If your original booking was made prior to 30 April 2020, and you were due to travel on a Qantas flight between January 31, 2020 - September 30, 2020, your flight credit can be used across multiple future bookings.'
'A customer could use the travel credit from a cancelled flight to London to instead go on several interstate holidays over the next 18 months or so.'
The flying kangaroo has also extended the expiry date on credits issued after January 1, 2019, which are now valid until December 31, 2021.
Jetstar customers will be given one year to book and a further one year to travel.
But customers who've made bookings through travel agents or third party websites such as Webjet and Booking.com will need to contact the company directly.
The back down comes one day after law firm Slater and Gordon announced a class action lawsuit against major airlines, travel agents and tour companies who have refused to issue monetary refunds and instead opted for travel vouchers and credits.
Customers who have cancelled international trips with Qantas will now be able to book multiple interstate flights under the airlines revamped credit policy. Pictured: Travellers in long lines are seen at Sydney International Airport on March 27
'We understand that everyone is doing it tough at present, including the major airlines and travel companies, but that doesn't give them an excuse to take advantage of their customers,' Slater and Gordon Practice Group Leader Andrew Paull said.
'Nor is it acceptable for Qantas shareholders to treat the money it owes to ordinary Australians like its own.'
The law firm believes major travel providers, including Qantas and Jetstar, may have breached their legal obligations by putting in place travel voucher schemes that significantly disadvantage their customers.
'We believe cash refunds should be returned to customers, who almost certainly need that money right now, rather than in bank accounts gathering interest for airline shareholders,' Mr Paull said
'We call on businesses like Qantas and Jetstar to do the right thing and honour their obligations to their customers.
'If they won't do so, then it's only reasonable for those customers to look at recovering their money through a class action.'
In one example, an Australian nurse who cut her seven-week holiday short due to the coronavirus crisis, was told her return flight home would only be redeemable if she returned to United States to claim it.
'They told me I had a $700 credit but I'd only get that if I flew a flight returning from the US,' the 36-year-old health worker told Gold Coast Bulletin.
'They want me to fly back to the United States and apply for a return flight.'
But according to Qantas, over '80 per cent of customers have opted for credit vouchers,' which are automated and processed within 24-48 hours.
With the aviation and travel industry facing a major backlash over the way they've handled the crisis, the tide appears to be turning for many industry players.
Travel agency Flight Centre were previously charging customers $300 to cancel international trips and retain a full refund.
Now the company has decided to waive the exuberant fee due to public pressure from furious customers.
The troubled airline Virgin Australia, who have now gone into voluntary administration due the COVID-19 outbreak, are also allowing passengers to change their booking or receive credits without additional fees.
After a wave of public anger the tide appears to turning for the aviation and travel sector, who are now altering their cancellation policies in the wake of COVID-19. Pictured: Massive lines are seen outside the Rydges Airport Hotel in Sydney on March 29
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