Humm, I would have thought at least under Australian law that if you paid for a flight (service) and they don't provide that service you are entitled to a refund. Breach of contract as well.
Humm I have not dealt with Jetstar but I rate Paypal right up there with the worst of worst at pissing off customer.
Do a google search "paypal sucks" unbelievable how many people they have pissed off
