Airlines could be forced to pay compensation for delayed or cancelled flights

CATHERINE KING AVIATION WHITE PAPER

Transport Minister Catherine King speaks to the media during the release of the Aviation White Paper at Parliament House, in Canberra, Monday, August 26, 2024. (AAP Image/Lukas Coch) NO ARCHIVING Source: AAP / LUKAS COCH/AAPIMAGE

Australian airline passengers could receive compensation for delayed or cancelled flights, under new reforms. The government plans to set up an Aviation Industry Scheme with an independent ombudsman and a Charter of Customer Rights.


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TRANSCRIPT

Flight delays and cancellations are the source of frustration for many Australians.

Passenger 1: “Because of the fog, the planes didn't take off. We got into Sydney here to catch our next flight and they had sold our tickets.”

Passenger 2: “We were about 25 minutes late leaving the Sunshine Coast and probably about 20 minutes late getting in here today.”

Passenger 3: “It would really be nice if the government had systems in place to be able to mitigate that for us.” 

The federal government's new Aviation White Paper, announced by Transport Minister Catherine King, seeking to change that.

"What we all want to see is in fact that customers get what they pay for. You have bought a ticket, if the flight does not go or the flight does not go when you expect it to go, you should expect that that's the service that is provided and so really this is about providing remedies to consumers who have found it very difficult to pursue these issues."

Under the proposed reforms, delays or cancellations have to be considered 'reasonable and fair' or otherwise carriers and airports risk being penalised.

A new Customer Rights Charter will establish what's expected of airlines in relation to refunds for cancelled or disrupted flights, the length of flight delays that are considered reasonable, and reasons for disruptions, delays and cancellations that are considered within the airline's control.

Minister King says an independent ombudsman would also be appointed, with airlines required to explain reasons for incidents.

"If it is because there has been overbooking or there is something that has occurred that is not in the usual - not reasonable, then it will be up to airlines to explain that but also where consumers seeking a refund, seeking compensation or seeking a credit or a flight, that actually does provide them that opportunity, this ombudsman scheme will provide opportunities for that to occur."

Part of the scheme also involves improving rules on airlines' treatment of passengers with disabilities, under an aviation-specific disability standards review.

Megan Spindler-Smith is the deputy chief executive officer of People with Disability Australia.

"Things like improved access around what happens post a wheelchair being damaged. People should not have to go through a full litigation process to be able to just get access to their device being fixed."

The decision welcomed by Qantas, who told SBS in a statement: "We share the Government’s focus on putting customers and the development of the aviation workforce front and centre."

The airline, along with its budget carrier Jetstar, and Virgin Australia control more than 90 per cent of the Australian market.

While details are yet to be provided, the new reforms will seek to address that duopoly, after Bonza and Regional Express entered voluntary administration earlier this year.

A consultation period will now take place until October.

Then government will then outline how passengers will be able to file complaints and the types of penalties airlines could face when flights are cancelled or delayed.

The legislation could be introduced in 2026, with complaints to start being heard that same year.

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