NZ regulator to sue Jetstar over misleading compensation claims

(Reuters) -New Zealand's competition watchdog will take Qantas' low-cost arm Jetstar to court alleging the airline misled consumers about their rights to compensation over delayed and cancelled flights, the regulator said.

Jetstar likely discouraged consumers from seeking compensation, and possibly denied claims for flights which were delayed or cancelled for reasons within the carrier's control, the New Zealand Commerce Commission (NZCC) said on Wednesday.

The regulator believes the airline made misleading statements to consumers about their rights under aviation law in 2022 and 2023, and will file charges at the Auckland District Court shortly, NZCC added.

Jetstar said it has fully cooperated with the NZCC as they conducted their investigation.

"Late last year, we began reviewing past claims and reaching out to impacted customers to ensure they are correctly reimbursed, and we are continuing to work through this as a priority," the low-cost airline said.

Qantas did not immediately respond to requests for comment.

(Reporting by Aaditya Govind Rao in Bengaluru, additional reporting by Echha Jain in Bengaluru; Editing by Shounak Dasgupta and Mrigank Dhaniwala)

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