Leslie Massey
Bestjet, an Australian budget airfare company, went into voluntary administration in December 2018, leaving thousands of customers out of pocket. The company, which was Queensland-based, lost its accreditation with the Australian Federation of Travel Agents (AFTA) prior to its collapse. Bestjet's previous owner, Rachel James, is the wife of the former boss of Air Australia, Michael James, who was banned from managing corporations for three years after Air Australia folded in 2012 with significant debts. This raises questions about the credibility and legitimacy of Bestjet as an Australian-owned company.
| Characteristics | Values |
|---|---|
| Country | Australia |
| Headquarters | Queensland |
| Subsidiaries | Wynyard Travel Pty Ltd, Brooklyn Travel Pty Ltd |
| Previous Owner | Rachel James |
| Current Owner | McVicker International |
| Previous Owner's Husband | Michael James |
| Current Owner's Director | Robert Bruce McVicker |
Explore related products
What You'll Learn
Bestjet's collapse left customers out of pocket
Queensland-based budget airfare company Bestjet and its subsidiaries, Wynyard Travel Pty Ltd and Brooklyn Travel Pty Ltd, went into voluntary administration on December 18, 2018, just days before Christmas. The company's collapse left travellers who booked flights through the company thousands of dollars out of pocket and desperate for answers.
Neil Hall and his wife, Annette, paid $10,600 (AU$14,800) for two business class flights from Brisbane to Milan with Etihad on December 11. They had never flown business class before and decided to splurge after Neil was made redundant. The couple received a tax receipt and assumed the flight had been paid for—until December 22, when a strange email landed in their inbox. Purporting to be from Bestjet, it was littered with spelling errors and accusations aimed at airfare ticketing consolidator CVFR Travel Group.
Neil contacted Etihad, who confirmed a hold had been placed on their spot but that the ticket had not been paid for. Their booking was eventually cancelled by the airline on December 31. "We've never flown business class, and it was sort of a once-in-a-lifetime thing to celebrate the start of something new for us, Neil told Guardian Australia. "It's obviously quite a large amount of money and not an everyday purchase, put it that way. It's certainly hit us pretty hard."
Kate Ryder, who lost $3,150 on a flight to Paris for the FIFA Women's World Cup final, set up a Facebook group for customers to share information. The group now has 700 members, and Ryder estimates that the losses of its members alone could amount to about $2.4 million.
Bestjet's collapse was allegedly caused by a $3.2 million payment from its Singaporean arm that never materialised. The company was sold to McVicker International in November 2018, and its sole director, Robert Bruce McVicker, claimed that he had been legally obliged" to place the company into administration. McVicker also stated that he had received "no financial benefit" from his involvement with Bestjet and that his reputation had been "irreparably damaged".
Bestjet's previous owner, Rachel James, is the wife of the former boss of Air Australia, Michael James. Michael was banned from managing corporations for three years after Air Australia's collapse in 2012, which left thousands of passengers stranded overseas and creditors almost $100 million out of pocket. Bestjet lost its accreditation with the Australian Federation of Travel Agents after it came to suspect Michael was an employee of the company.
Converting Yen to Australian Dollars: How Much is it Worth?
You may want to see also
Explore related products
Bestjet loses accreditation with the Australian Federation of Travel Agents
Bestjet Travel Pty Ltd, an Australian budget airfare company, lost its accreditation with the Australian Federation of Travel Agents (AFTA) in 2016. The loss of accreditation resulted from a series of decisions, including an appeal decision dated March 18, 2016, which refused to renew Bestjet's ATAS accreditation.
The implications of this decision were significant for Bestjet, as it stood to lose customers and suffer reputational damage. Bestjet sought legal action, applying for an urgent interim injunction and later an interlocutory injunction to restrain AFTA from acting on or publishing its decision. Bestjet argued that withholding interlocutory relief could result in damages and that competitors would gain business at its expense.
Despite these efforts, Bestjet ultimately lost its accreditation. This loss of accreditation, however, did not prevent the company from continuing to trade. Bestjet's collapse in December 2018 left thousands of customers out of pocket, with many unsure if they would recover their money. The circumstances around the company's collapse were unclear, but it prompted anger and legal threats from affected customers.
Dogs' Journey: Flying Safely to Australia
You may want to see also
Explore related products
Bestjet's former director had a family link to failed budget airline Air Australia
Bestjet, an Australian travel booking company, collapsed in December 2018, leaving thousands of customers in limbo and out of pocket. The company went into voluntary administration on December 18, just days before Christmas, after being sold to McVicker International on November 2.
The company's collapse has been linked to its former director, Rachel James, and her husband, Michael James. Michael James was the former director and owner of Air Australia, a budget airline that collapsed in 2012 with debts of nearly $100 million, including about $36 million owed to ticket holders. Michael James was banned from managing corporations for three years after Air Australia's collapse.
Rachel James, who was a director of Bestjet until November 2, 2018, is listed as one of three inaugural directors of Bestjet Travel Pty Ltd, which was founded on February 28, 2012, less than a fortnight after Air Australia's liquidation. While Rachel James claimed that her husband was only employed as a "'fares and pricing analyst' for Bestjet and was not involved in the day-to-day running of the company, there is evidence to suggest that he may have had a more influential role.
The Australian Federation of Travel Agents (AFTA) stripped Bestjet of its accreditation in 2016 because it believed Michael James was an employee of the company. AFTA's decision was upheld in the Brisbane Supreme Court, which found that Michael James "may" have been in a position to influence or make decisions about Bestjet's business. A preliminary report by Bestjet's administrators also confirmed Michael James's involvement in the management of the company.
The collapse of Bestjet has left thousands of customers angry and unsure if they will get their money back. Many customers have been left thousands of dollars out of pocket, with some fearing they will not see their money again. The fallout has led to the creation of a Facebook support group, the Bestjet Fiasco Action Group, for affected customers to share information.
HIV Medication Access in Australia: Free or Fee?
You may want to see also
Bestjet is rated Bad on Trustpilot
Bestjet is rated "Bad" with 1.6/5 on Trustpilot, with 57 people having reviewed the company. The company's customer service has been described as "completely unhelpful", with long wait times of up to 45 minutes. Several customers have complained about not receiving their tickets within the promised timeframe of 72 hours, and about issues with refunds and cancellations. One customer reported that they had to wait several months to receive their refund. Another customer was charged an additional $660 to change their ticket, despite the error not being on their part.
However, some customers have had positive experiences with Bestjet, with one describing the company's customer service as "professional and informative". This customer also reported that their e-ticket was provided promptly and accurately.
Bestjet is an Australian budget airfare company based in Queensland. In 2019, the company went into voluntary administration, leaving thousands of customers out of pocket. The company was sold to McVicker International on 2 November 2018. Australian Securities and Investments Commission records show that the business was only registered in October 2018. Bestjet lost its accreditation with the Australian Federation of Travel Agents after suspecting that Michael James, the former boss of Air Australia, was an employee of the company.
Contraceptive Pill Access in Australia: What's the Cost?
You may want to see also
Bestjet's subsidiaries
Bestjet, an Australian budget airfare company, and its subsidiaries, Wynyard Travel Pty Ltd and Brooklyn Travel Pty Ltd, went into voluntary administration on December 18, 2018, leaving thousands of customers in limbo.
Wynyard Travel and Brooklyn Travel were subsidiaries of Bestjet, a Queensland-based company that offered an online travel booking platform for flights, headquartered in Brisbane, Australia. Bestjet was founded in 2012 and was a private company in the restaurants, hotels, and leisure industry.
The collapse of Bestjet and its subsidiaries left customers thousands of dollars out of pocket, with many unsure if they would ever recover their money. The circumstances around the collapse were unclear, but it was sold to McVicker International on November 2, 2018. Australian Securities and Investments Commission records showed that McVicker International was only registered in October 2018, just a month before the acquisition.
Bestjet's previous owner, Rachel James, was the wife of Michael James, the former boss of Air Australia, which collapsed in 2012, leaving thousands of passengers stranded and creditors out of pocket. Due to suspicions that Michael James was an employee of Bestjet, the company lost its accreditation with the Australian Federation of Travel Agents.
Australia's Freedom: A Complex Reality
You may want to see also
Frequently asked questions
Yes, Bestjet is an Australian-owned budget airfare company.
Bestjet went into voluntary administration on December 18, 2018, leaving thousands of customers out of pocket.
The collapse of Bestjet was due to its loss of accreditation with the Australian Federation of Travel Agents (AFTA) and its connection to the failed budget airline Air Australia.
