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Air Australia - refunds

brisbane
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528 posts
39 reviews
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Air Australia - refunds

Hi everyone,

We booked flights 2 weeks ago to go to Bali at Xmas with kids. Booked through Flight Centre. We knew that Covermore wasn't covering against Air Australia insolvency from December. I still paid for Covermore Insurance to cover us against other things.

I went ahead and paid for our flights using a credit card, knowing we had free comprehensive cover under the card to cover against insolvency. I did feel uneasy about Covermore not offering protection though...perhaps they saw the writing on the wall!

I'm with Westpac (WBC). If you are in the same boat, call westpac ask for a charge back.

This will start a dispute process whereby WBC will contact Air Australia. In 3-4 days, they will temporarily credit your card the cost of the airline tickets.

Should Air Australia refuse or not be able to return the funds, WBC will notify me in writing and remove the temporary credit. I then make a claim direct with Zurich. Zurich have advised that this process may take between 2 - 4 weeks.

I have been assured that I will get my money back (both from WBC and Zurich) - the uncertainty is when, and from whom.

If Air Australia fails to respond to WBC within 45 days, they will automatically credit my card, and the process ends there...or so I've been told.

Westpac contact number is 1300 651 089.

Hope this helps someone. What aa awful thing to happen to so many people!

Perth , Australia
Destination Expert
for Denpasar
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3,450 posts
57 reviews
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1. Re: Air Australia - refunds

I have been caught twice with airlines and tour companies going belly up. Both times I paid with Visa Card. Both times got the money back. The technical reason is Visa agree to provide you a service, ie the holiday you paid for, however when they are not able to provide that service ( ie the company ceased trading ) a refund is required.

Both times I had my refund within two weeks.

If your Visa Card provider does not give a refund fight the claim.

Melbourne, Australia
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2. Re: Air Australia - refunds

I also have been caught out I took out travel insurance with covermore, however, I did not read the fine print that they ceased cover from the 21st Dec. I will contact WBC as I paid for our flights with credit card and see if I am covered for a refund. Thanks heaps

brisbane
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528 posts
39 reviews
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3. Re: Air Australia - refunds

I very nearly paid in cash too - to avoid being hit the the credit card surcharge. The bank was next door to Flight Centre. Feel very fortunate now that I didn't - that $70 saving would have cost me $3500.

If you paid for your flights using a credit card..don't despair..contact your bank and ask about the free travel insurance that applies to travel purchases paid by your card.

Good luck!

MELBOURNE
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48 posts
37 reviews
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4. Re: Air Australia - refunds

It sounds like Flight Centre were very upfront with their customers. I booked through a different travel agent and they insured us with cover more. At no stage were we advised that Cover More didnt cover Air Australia or that their were rumours re Air Australia going under. I paid via Westpac credit card too but I am not counting my chickens yet. Westpac advised that it could take up to 90 days as Air Australia can ask for another 45 days on top of the original 45 days. Westpac also told me that they couldnt guarantee if we would get some of the money, none of the money or all of the money refunded....To save from getting into more financial debt I will wait until the money is 100% back in my account.

Edited: 17 February 2012, 22:30
brisbane
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528 posts
39 reviews
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5. Re: Air Australia - refunds

We booked two weeks ago and were not told about Covermore not covering AA against insolvency. I knew this as I had read it earlier somewhere on the Bali Forum. In fact the agent I saw that day went so far to assure me that it had all been sorted out and that Covermore was including AA again!

I got her to call Covermore to double check and was told that they would be excluded till further notice. I only went ahead with the booking because Westpac/Zurich assured me that I was covered under them if AA went belly up.

Guess I need to call Westpac again. Like lots of people, we can't re-book till we have the money back and if that doesn't happen, I guess Xmas won't be so merry after all!

A TripAdvisor Member
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6. Re: Air Australia - refunds

I purchased some tickets online for Hawaii, due to depart in May. I decided I would BPAY from my credit card as I have always done when paying bills etc. Turns out the only way to pay was through an account number and BSB. I didn't think anything of it, as it was still processing through my CC, and posted to my online banking acct. Phone CBA to try and lodge a charge back and been notified that they will not help me because it was a transfer. Because it has been debited from my CC, I feel as if the bank is just hanging me out to try based on the type of processing....anybody else in my same boat? This whole situation is such a mess......

ballina
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148 posts
25 reviews
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7. Re: Air Australia - refunds

Viewtravel - My flight centre was not upfront about Covermore and when I called to say I was annoyed (on Friday when it all exploded) they just fobbed me off. I only got the insurance on the 10th so I have the 14 day cooling off period still under my belt if I can't find something else

MELBOURNE
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48 posts
37 reviews
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8. Re: Air Australia - refunds

Jenstrongy- sad to hear, I only assumed that re flight centre after what I read in the herald sun ( that they had told customers) such a mess for all involved:(

MELBOURNE
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48 posts
37 reviews
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9. Re: Air Australia - refunds

Jenstrongy- sad to hear, I only assumed that re flight centre after what I read in the herald sun ( that they had told customers) such a mess for all involved:( I also only took out insurance on the 9/2/12 and thought about canceling it but then thought I should leave it as I may need it to claim my $800 booking fee.

MELBOURNE
Level Contributor
48 posts
37 reviews
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10. Re: Air Australia - refunds

Jenstrongy- sad to hear, I only assumed that re flight centre after what I read in the herald sun ( that they had told customers) such a mess for all involved:( I also only took out insurance on the 9/2/12 and thought about canceling it but then thought I should leave it as I may need it to claim my $800 booking fee.

Edited: 18 February 2012, 13:52