Queensland man denied refund by Virgin Australia for pandemic-halted overseas flight worth $22,113
- Replies 5
A man from Queensland named Drew Koshemakin had saved for seven years to fulfil his promise to his 14-year-old nephew—a dream trip to Las Vegas when he turned 21.
This long-awaited moment finally arrived on February 11, 2020, when he booked three round-trip business class flights (for himself, his wife, and his nephew) from Brisbane to Los Angeles (LA) through Flight Centre.
He also booked a domestic flight from LA to Las Vegas with Delta, an affiliate of Virgin, along with accommodations for their two-week stay.
Their departure date was set for October 31, 2020, but all flights were grounded when the COVID-19 pandemic struck. In response, Flight Centre refunded him nearly $4,000 for the domestic flights and hotels.
Unfortunately, Virgin, which had entered voluntary administration in April 2020, could not offer the same refund.
Instead, Drew was issued Future Flight credits of equal value, amounting to $22,113.
A Virgin Australia spokesperson explained that they cannot provide refunds to customers who had booked flights or holidays before the company went into voluntary administration on April 2020.
This is because the new Virgin Australia business, unlike its competitors, doesn't have access to the funds customers had paid for these bookings.
Instead, they are offering Future Flight Credits, which will expire on December 31, 2023, three years from when they were initially issued.
The spokesperson further clarified that during the administration process, the new owners of Virgin Australia sought approval from the Federal Court to issue these Future Flight Credits.
During that period, travel restrictions were still in effect, and Drew couldn't find any suitable travel options to book. He hoped that the airline would eventually resume its flights to the United States, allowing him to fulfil his original travel plans, but regrettably, this hasn't come to pass.
Nevertheless, the airline does offer routes to six other international destinations, such as Bali, and, as of June this year, there's a new route from Cairns to Tokyo. However, the Kallangur-based traveller found these options to be less appealing.
‘It is a lot of money just to go to Bali, and I also don’t have the time to get off work,’ said Drew.
‘I have got a mortgage, bills, and inflation has crept right up. I have had to tighten the belt on a few things, and that money is just sitting there in limbo.’
‘I just want a fair go.’
Drew even looked into the possibility of using his flight credits with Virgin's partner, United Airlines, but was informed that this wasn't feasible.
The Virgin website specifies that Future Flight credit is exclusively valid for Virgin Australia-operated flights, including any upcoming services Virgin Australia offers.
In other words, in Drew’s case, he couldn’t apply your Future Flight credit towards flights operated by Virgin Australia's codeshare and interline partners, except for specific flights operated by Alliance Airlines between Brisbane airport.
‘Your Future Flight credit can only be used on Virgin Australia-operated flights, including any future services Virgin Australia operates,’ it says on Virgin’s website.
Adam Glezer from Consumer Champion has been a vocal advocate for Drew and others in a similar situation. He believes it's unjust that passengers who booked their flights before the pandemic are not receiving the same benefits as those who booked after the pandemic.
‘Those who have COVID Credits cannot only fly until 2025, but they can also use their credits to travel to a multitude of international destinations with Virgin’s partners,’ he said.
According to Mr Glezer, Virgin should, at the very least, permit passengers with Flight Credits to use them for booking dream trips with the airline's partner carriers.
He argued: ‘It’s not their fault their flights were cancelled due to COVID, and it seems as if Virgin don’t care that it’s going to cost families up to tens of thousands of dollars. It’s great that Virgin have the ACCC’s approval, but it’s a matter of right from wrong. It’s morally disgraceful.’
Drew is still eager to go to Las Vegas with his wife and nephew, but he's concerned about the cost once his credits for the trip expire at the end of the year.
To make matters worse, the airline has made it clear that they won't extend the expiry date of these Flight Credits. They've already extended their COVID credits multiple times to recognise the challenges posed by the pandemic.
Since January 2022, Virgin Australia has made 2.4 million seats available for redemption using Future Flight Credits, and around 830,000 of these seats have been used by customers.
Currently, there is $290 million worth of outstanding Future Flight Credits.
Members, what are your thoughts on Drew’s story? Have you had less than pleasant experiences with pandemic-era flight credits, too? Share them in the comments below!
This long-awaited moment finally arrived on February 11, 2020, when he booked three round-trip business class flights (for himself, his wife, and his nephew) from Brisbane to Los Angeles (LA) through Flight Centre.
He also booked a domestic flight from LA to Las Vegas with Delta, an affiliate of Virgin, along with accommodations for their two-week stay.
Their departure date was set for October 31, 2020, but all flights were grounded when the COVID-19 pandemic struck. In response, Flight Centre refunded him nearly $4,000 for the domestic flights and hotels.
Unfortunately, Virgin, which had entered voluntary administration in April 2020, could not offer the same refund.
Instead, Drew was issued Future Flight credits of equal value, amounting to $22,113.
A Queensland man who booked a dream holiday to the US with his family just before the pandemic has been told he’s not getting any of his money back. Credit: Unsplash.
A Virgin Australia spokesperson explained that they cannot provide refunds to customers who had booked flights or holidays before the company went into voluntary administration on April 2020.
This is because the new Virgin Australia business, unlike its competitors, doesn't have access to the funds customers had paid for these bookings.
Instead, they are offering Future Flight Credits, which will expire on December 31, 2023, three years from when they were initially issued.
The spokesperson further clarified that during the administration process, the new owners of Virgin Australia sought approval from the Federal Court to issue these Future Flight Credits.
During that period, travel restrictions were still in effect, and Drew couldn't find any suitable travel options to book. He hoped that the airline would eventually resume its flights to the United States, allowing him to fulfil his original travel plans, but regrettably, this hasn't come to pass.
Nevertheless, the airline does offer routes to six other international destinations, such as Bali, and, as of June this year, there's a new route from Cairns to Tokyo. However, the Kallangur-based traveller found these options to be less appealing.
‘It is a lot of money just to go to Bali, and I also don’t have the time to get off work,’ said Drew.
‘I have got a mortgage, bills, and inflation has crept right up. I have had to tighten the belt on a few things, and that money is just sitting there in limbo.’
‘I just want a fair go.’
Drew even looked into the possibility of using his flight credits with Virgin's partner, United Airlines, but was informed that this wasn't feasible.
The Virgin website specifies that Future Flight credit is exclusively valid for Virgin Australia-operated flights, including any upcoming services Virgin Australia offers.
In other words, in Drew’s case, he couldn’t apply your Future Flight credit towards flights operated by Virgin Australia's codeshare and interline partners, except for specific flights operated by Alliance Airlines between Brisbane airport.
‘Your Future Flight credit can only be used on Virgin Australia-operated flights, including any future services Virgin Australia operates,’ it says on Virgin’s website.
Adam Glezer from Consumer Champion has been a vocal advocate for Drew and others in a similar situation. He believes it's unjust that passengers who booked their flights before the pandemic are not receiving the same benefits as those who booked after the pandemic.
‘Those who have COVID Credits cannot only fly until 2025, but they can also use their credits to travel to a multitude of international destinations with Virgin’s partners,’ he said.
According to Mr Glezer, Virgin should, at the very least, permit passengers with Flight Credits to use them for booking dream trips with the airline's partner carriers.
He argued: ‘It’s not their fault their flights were cancelled due to COVID, and it seems as if Virgin don’t care that it’s going to cost families up to tens of thousands of dollars. It’s great that Virgin have the ACCC’s approval, but it’s a matter of right from wrong. It’s morally disgraceful.’
Drew is still eager to go to Las Vegas with his wife and nephew, but he's concerned about the cost once his credits for the trip expire at the end of the year.
To make matters worse, the airline has made it clear that they won't extend the expiry date of these Flight Credits. They've already extended their COVID credits multiple times to recognise the challenges posed by the pandemic.
Since January 2022, Virgin Australia has made 2.4 million seats available for redemption using Future Flight Credits, and around 830,000 of these seats have been used by customers.
Currently, there is $290 million worth of outstanding Future Flight Credits.
Members, what are your thoughts on Drew’s story? Have you had less than pleasant experiences with pandemic-era flight credits, too? Share them in the comments below!
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