If you purchase a low cost fixed flight ticket, that is the risk you take. The fare is cheaper for many reasons, but partly because some of the burden of risk is born by the passenger. The Jetstar site does recommend you purchase travel insurance. Why should Jetstar wear the cost of the family's burden? They are actually being reasonable when they state they are willing to vary the terms of the contract on compassionate grounds. If you are claiming that a special condition should apply then the burden of proof should lie with the party making the claim.
I see no issue here.
BTW I am no fan of Jetstar or an employee...
Last edited by theheadmaster; 7th Dec 2010 at 08:49.