A Wellington-based lawyer is trying to get Jetstar to pay him almost $5000 after he booked and cancelled 59 flights to capitalise on what he believed was a legal loophole.   

On March 12, 2020, Tyrone Barugh, director of small law firm Spilt Milk, booked an Auckland-to-Sydney return ticket with Jetstar for travel from March 25 to May 7.   

Like many people, he was reacting to Jetstar’s promotional “Return for free” sale. Unlike many people, however, Barugh proceeded to cancel and book 57 more return flights to take advantage of what he saw as a loophole.   

Now, he is taking Jetstar to the Disputes Tribunal to get back $4965 in fees he claims he’s entitled to under a combination of Australian legislation and Jetstar’s policies.   

Jetstar declined to comment as the matter was before the tribunal but suggested some of Barugh’s claims were incorrect.   

Here’s how it worked: when Barugh made his first booking, the Auckland-Sydney flight cost $285 and the return was free. Ten minutes after booking, Barugh contacted Jetstar and requested they cancel his outbound flight and refund the fare amount as a voucher, according to Jetstar’s statement of defence filed with the tribunal, which Barugh shared with the Herald.   

The Auckland-Sydney leg was cancelled but the return Sydney-Auckland booking remained. Barugh then used the $285 credit to make a second booking. Like the first, it was a New Zealand-to-Australia return and the return flight was free.   

He did this 57 more times, each time booking from credit earned by cancelling the paid leg from the previous booking.   

Combination of policy and legislation makes a case 

So, how did Barugh get from booking dozens of flights to demanding $4965 from Jetstar? The answer, he explains, is a combination of Jetstar’s policy and a piece of Australian legislation called the Passenger Movement Charge Collection Act 1978.   

Barugh wants Jetstar to refund him the $60 Passenger Movement Charge, which the Australian Government collects when a person departs Australia.   

He claims that clause 5.4 of Jetstar’s conditions of carriage states: “If there is a charge or tax which Jetstar collects on a per passenger basis to remit to an airport or taxing authority, and we do not have to remit that amount as a result of your not travelling, we will refund that amount to you, after deducting a reasonable administration fee.”   

Since Barugh did not travel on his 59 return flights, he claims he’s “entitled to a refund of charge paid by the person if the departure in respect of which the charge was paid does not take place”, as stated in section 9 of the Passenger Movement Charge Collection Act.   

Therefore, he has requested a refund of the passenger charge, plus taxes and fees that Jetstar didn’t have to pay airports, minus the $50 administration fee. The total claimed is $4965.   

‘I think it’s hilarious’: Lawyer explains motivation 

For Barugh, the idea goes back to 2018, when he first had the idea, and appears to be something he pursues when he has free time. He booked the flights in 2020 and asked Jetstar for refunds in 2022. When Jetstar didn’t comply, he left it until this year, when he had “a couple of days handy” and decided to escalate it to the Disputes Tribunal.   

Comments on his X post range from congratulatory to critical, with some calling Barugh a “genius” doing “God’s work” and others suggesting he was an a***hole and acting childishly.   

When asked about his motivation, Barugh said it was tempting to do what many lawyers did and fabricate a story but he knew people were smarter than that.  

“If I spin this valiant story about the principle of it, everyone would pretty straightforwardly know that I’m full of s**t,” he said.  

The truth was much more simple. “One, I think it’s hilarious,” he said, adding there was “a reasonable chance” he’d get $5000 from it.  

There was also an element of irony.  

“Jetstar and Qantas are really happy to rely on the fine print and technicalities when things go wrong and they need to minimise their liability to customers,” he said.   

Yesterday’s scheduled hearing before the Disputes Tribunal was postponed, he said. 

He believed he had an “arguable” case but it was “anyone’s guess” as to what the tribunal would decide. He added that he’d prefer to settle things with Jetstar before the rescheduled hearing.   

“Even if I lose, I’m...proud of this effort,” he posted on X.