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Budget Airlines Are Prone to Consumer Disputes - CHOICE # 461

  • 2015.03.16

Budget air tickets are no doubt a veritable bargain in air travel. Paradoxically, they are prone also to consumer complaints of various descriptions.

The growth in budget airline service in recent years in Hong Kong has brought with it an upsurge of consumer complaints to the Consumer Council.

Complaints leveled against low cost carriers (LCCs) reached a total of 764 cases last year, an average of 2 complaints per day, doubling that of 2013 (318 cases) and a tenfold increase over 2012 (70 cases).

Top on the list of consumer dissatisfaction concerned price disputes (298 out of 764 cases). Equally significant is the level of consumer dissatisfaction concerning: flight delay and cancellations (201 cases), and service quality (165 cases).

At the root of the problem is the general expectation gaps on the airlines services between LCC and the traditional full service carriers (FSCs). In reality the format of LCC as opposed to the traditional FSCs is very different, as well as the many limitations behind what may seem very attractive pricing.

Unlike the traditional FSCs, LCCs levy on a host of services, for instance, check-in baggage, inflight service such as food and beverage, entertainment facilities.

To enhance consumer awareness, the Council has conducted a survey based on 10 LCCs which together share around 90% of the total passenger traffic in the Hong Kong LCC market. Highlights of the study include:

Baggage Charges
- Carry-on baggage is free (with limitation in size) but check-in baggage is charged separately at a rate of $88 to $450 for 15kg to 40 kg.

Inflight Add-on Service Charges
- Seat selection: passengers are allowed to secure a seat of own preference or more space or comfort at a price from $20 to $205.
- Food and beverages: some LCCs offer a wide variety of choices at affordable price at $9 - $145, depending on the choice of food and drinks.
- Entertainment facilities: most provide free magazines and duty-free shopping only; 3 offer Wi-Fi for internet browsing.
- Pillow and blanket: the charges range from $60 to $110, some nap kits also contain eye masks and ear stoppers.

Ticketing-related Charges
- Change of travel period: most allow change of date/time at a cost from $280 to $430 per flight.
- Change of destination/passenger name: most do not allow; and cancellation: allow in some cases at a surcharge of $342 to $550 per flight.

Liability/Compensation
In the event of flight delays, cancellations, damaged or missing baggage, most LCCs offer only minimal compensation which nonetheless should satisfy minimum requirements under international conventions. The Montreal Convention stipulates that under non-extraordinary circumstances such as technical faults which are within airline's control, air carriers have the obligation to compensate or render assistance to passengers.

As revealed in the complaint cases, LCCs are generally lacking in offering satisfactory arrangements in timely information dissemination, adequate communication with the affected passengers, and prompt efficient ground customer service such as open hotlines to get through. They are also allegedly less responsive in offering assistance to customers' requests.

Follow these steps to ensure a smoother air journey and travel. First, before ticket purchase: pay attention to any pre-ticked items and carriage terms and conditions; baggage and add-on services are a lot cheaper when purchased on the Internet; and purchase travel insurance for greater protection.

Second, one day before departure: check if there is any incoming email from the LCC regarding flight changes; check in early at the city check-in stations or on the LCC's website if the service is available; and have the contact numbers of the LCC customer service, airports and embassies handy.

Third, on the day of departure: bring the e-ticket/email confirmation with you; pay attention to latest traffic information; and reach the check-in counter early.

The Consumer Council reserves all its right (including copyright) in respect of CHOICE magazine and Onlin CHOICE (https://echoice.consumer.org.hk/).