Wed Sep 18 02:57:19 UTC 2024: ## Jetstar Faces Scrutiny in New Zealand, While Qantas Shares Soar
**Auckland, New Zealand** – Qantas Airways, the Australian airline giant, is facing scrutiny in New Zealand after the Commerce Commission announced plans to file charges against its subsidiary, Jetstar. The Commission alleges that Jetstar misled New Zealand consumers about their rights to compensation for flight delays and cancellations within the airline’s control.
The investigation centers around Jetstar’s handling of customer compensation for delayed or canceled flights on New Zealand domestic routes. The Commerce Commission claims that Jetstar misrepresented consumers’ rights under New Zealand’s Civil Aviation Act, which obligates airlines to compensate passengers for losses caused by delays or cancellations within the airline’s control.
“Airlines have a responsibility to not mislead consumers about their rights in the event of cancellations or delays,” said Vanessa Horne, General Manager of the Commerce Commission.
Jetstar’s website allows consumers to resubmit claims for compensation for reasonable costs from cancelled or delayed flights which may have been incorrectly handled at the time. The Commerce Commission encourages any consumers who think they may be eligible to visit Jetstar’s website.
Despite the brewing legal challenges facing its subsidiary, Qantas shares have been on an upward trajectory. On Wednesday, the share price reached a new 52-week high of $7.34, extending gains to 20% for the past month.
Several brokers remain bullish on Qantas’ long-term prospects, citing the airline’s improved post-pandemic position and stronger balance sheet.
**The Motley Fool** notes that the legal proceedings against Jetstar are not considered price-sensitive for Qantas, but the development could bring increased attention to the airline. The company’s share price currently trades at a price-to-earnings (P/E) ratio of just 9.3 times, suggesting investors are optimistic about the airline’s future performance.
First Piper 