A 74-year-old Nelson resident is angry Air New Zealand has issued him and his wife, 73, a credit for cancelled premium economy tickets to Houston, which cost over $7000.

Air NZ suspended the flights before the coronavirus lockdown in New Zealand, and offered the couple 12-month credits, said Lew Bone. They have been fighting to get a refund instead.

"We advised Air NZ that we had purchased premium tickets as we already found long haul flights of 15 hours duration arduous," he said.

"We told Air NZ that due to our age, the likelihood of us travelling again on such flights is unknown and quite possibly unlikely, and certainly not within their imposed 12 month timeframe.

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GEORGE HEARD/STUFF The airline was also letting affected customers know that credits will be extended to June 30.

"I have sent Air NZ copious emails describing this situation for us and requesting a refund rather than a credit. They refuse to issue a refund.

"We believe it is unreasonable and unfair for Air NZ to not take our personal circumstances (age) into account. If we were younger, sure - a 12 month credit might work. But for us, this is not a realistic option."

He had sympathy for the airline and its staff, but did not believe it was being fair.

Air New Zealand is giving refunds to customers in countries covered by regulations that require airlines to issue refunds for cancelled fares, but it's giving credits for New Zealand customers.

More than 200,000 Air New Zealand passengers have so far received credit for the cost of tickets they had to cancel as the coronavirus pandemic closed borders.

Last month the airline changed its refund policy, allowing passengers to cancel their flight and receive credit for the full cost of an unused ticket, valid for 12 months from the time they receive the credit.

In the United States, airlines have been told to issue refunds rather than credits or vouchers after an outcry by passengers. Foreign airlines operating services to the US were also included in the US Department of Transport policy, Forbes reported.

The department had received complaints from people who said airlines had refused to pay refunds after flights were cancelled. US rules requiring refunds, even if the disruptions were beyond the airline's control, had been in place for decades.

The European Union also said EU law required reimbursements to be made within seven days.

"Airlines must refund canceled flight tickets," EU Transport Commissioner Adina Valean said. "They can of course also offer a voucher but - and this is very important - only if the customer agrees to accept this."

RICKY WILSON/STUFF More than 200,000 Air New Zealand passengers have been given a credit to cover cancelled tickets.

Air New Zealand would refund or credit customer tickets according to the fare product purchased, and local regulations, said an Air NZ spokesman.

Air NZ operated in 20 countries, and would do whatever the United States or other countries required.

The credit was not a voucher, and passengers would receive the dollar amount they had paid.

The airline was also letting affected customers know that credits would be extended to June 30, he said.

Air NZ has also extended Koru Club vouchers for six months, with the extension applying to the expiry date for people who were current Koru Club members as at March 31.

Jessica Wilson, Consumer NZ head of research, said the organisation had already been pushing for stronger rights for airline passengers, to match many other countries.

In New Zealand, airlines had to comply with the Consumer Guarantee Act in terms of the standard of service they provided, but the Civil Aviation Act limited their liability where flights were cancelled due to a pandemic or a disaster, she said.

"What the Covid-19 lockdown has really highlighted is there is a big issue here because so many consumers have been affected, and instead of being able to get their money back, the airlines are retaining that money.

"So they've got the use of that money for up to a year and in some cases there could be a real risk to consumers that an airline could go under and they may not get their money back at all."

SUPPLIED Consumer NZ has been pushing for stronger rights for airline passengers, to match many other countries, says Jessica Wilson.

The Government moved to support Air New Zealand with a $900 million loan, but some airlines overseas may end up facing ruin.

"It's a pretty unreasonable situation for a consumer to be in, to pay sometimes thousands of dollars for a flight only to be told no, you're not getting it back, you're going to get a credit," Wilson said.

"Considering any other good or service we would purchase, normally when the company doesn't supply that good or service, you are entitled to a refund.

"We'd like to see consumer protection rights on a par with those that EU consumers enjoy with their regulations."

Specific consumer rights could be inserted into the Civil Aviation Act relating to delayed and cancelled flights.

Australia's consumer protection was similar to New Zealand's, so passengers who had booked Qantas flights across the Tasman also had to rely on the airline's terms and conditions, she said.

Travel had been a big issue for Consumer NZ in the last few weeks, with some people having spent a large amount of money on flights and accommodation that had been cancelled.

Travel insurance refunds that can no longer be used, and cancellation fees charged by some travel agents had also caused people problems, she said.

​- With Bloomberg