Thousands of travellers who booked trips with STA Travel could find themselves out of pocket, after the company was placed into voluntary administration.
File photo. Photo: 123RF
Some people said they were promised refunds or credit notes by STA, but they had battled for weeks to get an answer about what happened to their money.
Emily Vale and her partner were looking forward to their first trip home to the UK since they moved to New Zealand five years ago.
"So we had a big three-week trip planned with returning flights booked with STA Travel," Vale said.
They had booked the trip last year - well before Covid-19 all but put a stop to international travel.
Vale said they were meant to take off in April, but by the end of March it was clear they wouldn't be going anywhere.
"I got our call from STA saying 'look, we think it's best that the trip gets cancelled'... and then I got confirmation about five, six days before we flew to say that Emirates had actually cancelled the flight."
Despite the agreement she signed, which said she was entitled to a refund if the trip was cancelled before departure, she was told that wasn't an option and she could only get a credit.
"I proceeded to say 'well, I don't want to re-book and if I do get a credit note, what happens if you go under?'," Vale said.
With emails, phone calls and messages on social media going unanswered for weeks - and STA Travel now in voluntary administration - Vale was not sure she would see any of the $4000 she and her partner paid for their flights.
"Honestly, I just want to pull my hair out, because these are tough times for everyone."
Another woman who had booked a trip to the UK in June said she was promised a refund, but was told it could take up to 11 months to process - and she had also found it hard to get in touch with the company.
"It's been really frustrating not being able to make contact ... I only got a little bit of contact on Facebook this morning about the administrators being appointed."
Jon Duffy from Consumer New Zealand said travellers who had money tied up with STA Travel would be treated as unsecured creditors by the administrators.
"Which means when the company is wound up, whatever money is left over is paid to the secure creditors like the banks and stuff and if there is anything else left after that, whoever does the administration will divvy that out amongst consumers but it is [very unlikely] any consumer is going to get their full money back."
The administrators, Deloitte, said they would be providing regular updates to travellers and other third parties.
Level 2 frustrating airlines
Meanwhile, airlines are becoming increasingly frustrated by the level two physical distancing requirements and have called for a rethink of the rules.
Jetstar announced that would be suspending its domestic flights until 6 September because flights were not viable if they had to keep the middle seat free and limit the number of passengers.
Air Chathams chief operating officer Duane Emeny said on small aircraft, it was just wasn't workable.
Duane Emeny. Photo: RNZ / Robin Martin
Air New Zealand also warned it would not be able to offer its lowest fares while planes were flying well below full capacity.
If masks were required on board, staff used PPE and everyone followed good hand hygiene, the airline could operate safely, a spokesperson said.
Health Minister Chris Hipkins said changes to the physical distancing requirements on planes were not likely in the short term, however.
Director-General of Health Ashley Bloomfield said physical distancing was just as important as using masks on planes, but the ministry was continuing to work with transport providers, including airlines.
