Partial refund "better than nothing": AFTA

Partial refund "better than nothing": AFTA
By admin


The Australian Federation of Travel Agents has described a 21.88% refund for travel agents following the collapse of Air Australia as “better than nothing”.

Retailers were told yesterday by the International Air Transport Association (IATA) there was not enough cash to cover all refund claims lodged and approved by the airline.

It means almost 80% will not be repaid to agents, and ultimately to consumers, who were left stranded after the airline folded in February with debts of between $80 million and $90 million.

While some retailers will be disappointed at the amount of refunded cash, AFTA chief executive Jayson Westbury said it was not an unexpected outcome.

“I am pleased the issue has been resolved and 21.88% is better than nothing,” he told Travel Today.  

A memo to agents from IATA confirmed the funds withheld “are not sufficient to cover all of the refunds that have approved by Air Australia”.

“Therefore IATA will have to prorate the total refunds against the total amount withheld, which means that you will received 21.88% of the total refund approved by the airline,” it told agents.

Refunds “are final”, IATA stressed, and will be automatically included in the billing cycle for July 30 to August 5.
Refunds rejected by Air Australia will not be processed, with IATA directing any agents with queries to the airline’s administrator, KordaMentha.

That agents will receive anything had been in doubt following a dispute between the administrators and IATA (Travel Today, May 31).

Complexities surrounding data meant KordaMentha were unsure about what portion of the money held by IATA belonged to agents and were reluctant to pay out.

Latest News

  • Destinations
  • Tourism

NYC Tourism + Conventions announces two exciting new events

NYC Tourism + Conventions has announced ‘NYC Off-Broadway Week 2025’ and ‘Value Family Activities’ events lined up for this year. NYC Off-Broadway Week 2025 2-for-1 ticket sales for this event have begun with this season’s program featuring 29 Off-Broadway performances, including 18 new participants. The twice-yearly program runs from 17 February through 9 March with […]

  • Events
  • Tourism

Jeju wins bid to host 2028 Asia-Pacific Microscopy Conference

The Korea Tourism Organization (KTO) has successfully secured the 14th Asia-Pacific Microscopy Conference (APMC14) for Jeju in November 2028. This was achieved in partnership with the Korean Society of Microscopy, Jeju Special Self-Governing Province, Jeju Convention Bureau, and Jeju International Convention Center. Korea was selected as the final host after strong competition at the 13th […]

  • Cruise
  • Food & Beverage

Oceania Cruises sets new standard for onboard dining: one chef for every 10 guests

Oceania Cruises, renowned for The Finest Cuisine at Sea, has set a new standard for onboard dining with an exquisite new menu evolution in The Grand Dining Room. Launching on its newest 1,200-guest ship, Allura, in July 2025, the reimagined menus introduce over 270 brand-new recipes, from curated Signature Eggs Benedict breakfast selection to a chic French […]

  • Tour Operators

Clayoquot Wilderness Lodge celebrates 25th anniversary with new adventures

Baillie Lodges has announced that it is celebrating the 25th anniversary of its Clayoquot Wilderness Lodge with a range of new helicopter experiences for the 2025 season. Kicking off on 22 May, the 2025 season promises five months of generously inclusive luxury adventures for guests in nature’s own playground where black bears forage shoreside, whales, […]