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)