Air NZ apologises for refusing to reimburse family for US tipping costs

Air New Zealand has apologised after wrongly refusing to reimburse a family for tipping costs while they were stranded in New York City - one of the world’s most expensive cities - after their flight was grounded.

A woman travelling with her partner and two young children were among passengers booked on Air NZ’s flagship NZ1 service from John F. Kennedy Airport to Auckland on July 19, which was cancelled after engineers discovered a fuel leak.

The passenger, who did not want to be identified, told the Herald her family endured three days of disruption after the original flight and its replacement on July 20 were cancelled.

“We got our luggage and were told to line up back at the check-in counter,” she recalled.

“It was chaos ... My kids fell asleep on the floor.”

While Air NZ handed out hotel vouchers to travellers, the family had relatives they could stay with, saving the airline money and them time.

The family spent two extra nights in New York City after their Auckland-bound flight was cancelled. Photo / 123rf

“It didn’t seem like anyone was there to help us and we felt so grateful to have somewhere to go.”

Air NZ promised to pay for accommodation, transport and food but passengers still faced unavoidable costs in the form of gratuities – a near-mandatory part of daily life in the United States.

“One of us is a New Yorker. It’s against nature not to tip ... Servers and drivers do not take kindly to people who don’t tip,” she said.

“We also wanted to show our kids how to respect the customs of other nations.”

The family spent about US$150 ($253.34) on tips for food and transport before finally departing the US on July 21.

While Air NZ reimbursed the base costs, it initially rejected their claim for tips, citing a policy against covering any gratuities.

Air New Zealand initially refused to cover gratuity costs for the family. Photo / Getty Images

The passenger described the refusal as frustrating.

“The financial hit is decent. [US$150], especially after a holiday, is a good amount of groceries,” she said.

“But it’s more the principle. We saved Air NZ US$1000 ($1695) by staying with family, and then they short-change us on the gratuity – an expense that is mandatory?”

Following questions from the Herald, Air NZ admitted the passenger had been given incorrect advice and confirmed it would reimburse the tipping costs.

“Unfortunately, in this case, a member of our team supplied the incorrect information,” Air NZ’s general manager (customer) Alisha Armstrong said.

“When there is a disruption to travel that is within the airline’s control our policy is to refund any reasonable expenses incurred, and we agree that while in the US tipping is a reasonable expense.

Air New Zealand has since apologised to the affected family. Photo / Michael Craig

“Our team have contacted the customer to apologise for the initial incorrect information and are reimbursing for gratuity.

“This example will be used as a valuable learning opportunity for our customer service team to prevent similar occurrences in future.”

Air NZ’s New York route faced several disruptions last month.

In July storms and air traffic constraints forced passengers on flight NZ2 to spend the night in Washington DC with travel cancelled in both directions.

Tom Rose is an Auckland-based journalist who covers breaking news, specialising in lifestyle, entertainment and travel. He joined the Herald in 2023.