And the worst airline in Australia is…

Regional Express Holdings Ltd (ASX:REX) thrashes bigger rivals when it comes to complaints

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Tigerair has officially been declared Australia's worst airline – for the third year running.

According to the federal government-appointed airline ombudsman, Tigerair not only received the highest number of complaints, but they were also more than last year. That suggests Tigerair's new parent, Virgin Australia Holdings Ltd (ASX: VAH) is struggling to turn around the abysmal performance of the airline since buying the remaining 40% of Tigerair it didn't own in October 2014.

The Airline Customer Advocate was established in 2012 to help resolve complaints from customers of five airlines, including Qantas Airways Limited (ASX: QAN) and its budget carrier Jetstar, Virgin, Tigerair and Regional Express Holdings Ltd (ASX: REX). Alliance Aviation Services Ltd (ASX: AQZ) doesn't participate in the process – although one could argue it predominantly carries fly in, fly out workers and does contract work, rather than commercial flights.

The top 5 complaint issues in 2014 were:-

  • Refund requests – 31%
  • Flight delay or cancellation – 15%
  • Terms and conditions – 12%
  • Fees or charges – 8%
  • Airport customer services – 7%

Tigerair led in all categories, despite flying considerably fewer passengers during the year (apart from Regional Express). The airline carried 3.3 million passengers over the 2014 year, compared to 17.7 million for Jetstar, 19.8 million for Virgin and 27.5 million for Qantas.

As an example, Tigerair received 4.71 refund request complaints per 100,000 passengers compared to just 0.75 at parent Virgin and 1.11 at main rival Jetstar. The airline also received 2.28 complaints about delays or cancellations per 100,000 passengers compared to 0.2 for Qantas.

Clearly, Virgin CEO John Borghetti is unlikely to be very happy about Tigerair's performance, particularly since it doesn't appear to be improving. Virgin is relying on Tigerair to compete on the same level as Jetstar, but at this stage, Jetstar is leagues ahead.

The award for best airline goes to Regional Express, who had by far the lowest number of complaints per 100,000 passengers.

Motley Fool contributor Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »