Commission urges caution in dealing with Aloha Holidays
Published19 Jan 1995
The Commerce Commission advises businesses they should not become involved in promotion of free travel to Hawaii offered by Aloha Holidays unless they exercise considerable caution.
Commission Fair Trading Manager Keith Manch said the Commission believes Michael Helsby-Knight, also known as Michael Knight, is involved in running Aloha Holidays. The New South Wales Commissioner for Consumer Affairs has permanently disqualified Mr Helsby-Knight from holding a travel agents license and from being involved in any travel agency in New South Wales.
The New South Wales disqualification also applies to Matthew Howden, John Knight and Joey Perricone, all associates of Mr Knight.
Dishonest and unfair conduct, involving misrepresentation of free airfare vouchers, misleading advertising, non-disclosure of conditions prior to booking and abuse of credit card processes, were some of the reasons for the disqualification.
Aloha Holidays is selling, to businesses, vouchers offering free travel to Hawaii. The businesses would use the vouchers in sales promotions.
In October last year the Commission obtained an interim injunction to prevent Mr Knight, Mr Howden and 12 others from making similar offers directly to consumers. Aloha Holidays' activities are not covered by that injunction because they are dealing only with retailers and not consumers. However, the Commission is very concerned that businesses dealing with Aloha Holidays and Mr Knight be alert for contravention of the Fair Trading Act.
The Commission's inquiries show that Aloha has made no arrangements with Air New Zealand to provide flights to Hawaii. Air New Zealand is the only air line flying between New Zealand and Hawaii. A travel agent which Aloha said was providing the tickets has told the Commission it has made no arrangements for Aloha and is not doing business with Aloha.
Preliminary inquiries suggest the Hawaiian hotel chain named in Aloha's package has also made no arrangements to provide accommodation for Aloha Holidays.
Mr Manch said businesses using Aloha's vouchers in promotions could face legal action from customers if vouchers were not honoured. Customers could take claims to the Disputes Tribunal or the courts.
The businesses may also face legal action from customers if they do not explain all the conditions applying to the vouchers. Conditions include restrictions on travel dates, booking arrangements and accommodation, and provision for Aloha to change the dates and prices.
The Commission is advising anyone who has dealt with Aloha and is concerned about their position to seek legal advice. The Commission cannot provide legal advice to businesses or customers.
Mr Manch said businesses must ensure they can honour all offers they make. They need to be very careful that they explain all conditions to customers.
"Even without legal action, upsetting customers is bad for business - they will probably shop somewhere else next time and tell other people about their bad deal."
