Passengers in Australia may soon benefit from a new aviation consumer protection scheme that aims to ensure compensation for flight delays and cancellations. The federal government has proposed this initiative following criticism regarding the lack of clarity in existing regulations. Under the scheme, passengers would be entitled to various forms of compensation, including refunds, free meals, accommodation, and prompt rebooking options.
The proposal comes in response to concerns raised about Labor’s draft charter of aviation rights, which did not adequately outline when customers could claim refunds or compensation for issues such as damaged, delayed, or lost baggage. Consumer advocacy group CHOICE highlighted a significant flaw in the draft, questioning which regulatory body would oversee the enforcement of these rights.
Transport Minister Catherine King is set to announce a four-week consultation period for the proposed scheme, with the government aiming to pass legislation by the end of 2025. The new protections will establish minimum assistance levels, mandatory information requirements at the time of booking, and guidelines for when passengers qualify for refunds or compensation. Following the legislation, the scheme is expected to be implemented starting next year.
Clarifying Responsibilities for Airlines and Airports
Minister King emphasized that the protection scheme aims to clarify obligations for airlines and airports. “We’ve heard the frustration Australian aviation passengers feel when dealing with airlines and airports,” she stated. “When things go wrong, it can be hard to know what passengers can expect, as standards vary greatly between airlines and airports.”
The scheme will cover essential information requirements during the booking and check-in processes, communication standards for passengers, and minimum assistance levels during flight disruptions. This initiative follows the lead of similar consumer protection schemes in the United States and the European Union, where passengers may receive compensation of up to €600 (approximately AU$1,072) for flight delays of three hours or more, barring extraordinary circumstances such as natural disasters.
Recent Issues with Qantas and Industry Standards
A recent report by the Australian Competition and Consumer Commission (ACCC) has brought additional scrutiny to airline practices, revealing that Qantas has a cancellation rate of 3.2 percent, significantly higher than its main competitor, Virgin Australia, which stands at 1.6 percent. Notably, Qantas’ budget airline Jetstar recorded a cancellation rate of just 1.1 percent.
In October 2024, Qantas faced penalties of up to $100 million after it was discovered that the airline had sold over 82,000 tickets for “ghost flights” it intended to cancel. These sales occurred between May 2022 and May 2024, during a period of increased demand following the easing of COVID-19 travel restrictions. The consumer watchdog also reported that Qantas delayed notifying passengers of flight cancellations, with an average notification time of 11 days, and in some cases, up to 67 days.
This pattern of behavior has prompted calls for greater accountability in the aviation industry, underscoring the need for the proposed consumer protection scheme. As the consultation period begins, passengers and consumer advocates will have the opportunity to voice their concerns and impact the final legislation, enhancing the rights and protections available to air travelers in Australia.
