Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Fly Away - but you'll have to pay:


Fly Away - but you'll have to pay:

Commission concerned about 'free flight' deal

The Commerce Commission is concerned that both consumers and retailers are being misled by 'free' flight deals to the Gold Coast offered by Fly Away New Zealand Limited.

The Commission is investigating Fly Away's 'Free Flights' promotion which is marketed to retailers as a rewards incentive programme for use with valued customers. Over 2,000 vouchers for two 'free' return airfares have been sold to around 50 retailers nationwide for $89 each.

The vouchers are distributed by Holiday Resorts International Pty Limited, an Australian company which came to the Commission's attention in 1998 for a similar promotion.

Director of Fair Trading Deborah Battell said that in order to redeem the vouchers customers must purchase accommodation specified by Holiday Resorts for a minimum of ten nights.

"While the vouchers may provide air fares at no cost, the accommodation that must be used is expensive and in some cases so expensive that you could reasonably expect to buy a package deal for both flights and accommodation for a similar price," she said.

"This promotion seems similar to offers the Commission has been aware of in the past where the cost of the compulsory accommodation is inflated by as much as the cost of an airfare."

Ms Battell said that the Commission had reason to believe Fly Away has been advising retailers that it is OK to advertise these 'free' airfares along with a statement, 'conditions apply'.

"The accommodation requirement is more than a condition. It directly impacts on the offer - the flights cannot be used without a considerable outlay by the consumer for accommodation," she said.

Ms Battell reminded retailers that they are legally liable under the Fair Trading Act for any misleading claims made to customers.

The Commission is interested in receiving information from members of the public who consider they have been misled by Fly Away's Free Flights promotion. Contact the Commission on 0800 94 3600.

Background

In 1998 the Commission issued a media release alerting consumers and retailers about travel vouchers to the Gold Coast being offered by Australian Company Holiday Resorts International Pty Ltd. See Media Release 1998/16 Commission warns about travel vouchers ( http://www.comcom.govt.nz/publications/display_mr.cfm?mr_id=373)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>