As part of the government’s much-anticipated crackdown on the aviation industry, Australians will now be able to receive a cash refund for cancelled or unreasonably delayed flights.
The White Paper on Aviation will be presented this morning and is intended to lead to a revival of air traffic following rapidly rising costs and the bankruptcy of two airlines.
As part of a major restructuring of the industry, a new “charter of rights” is to be introduced that will give passengers refunds for flights that are disrupted, cancelled or unreasonably delayed.
Transport Minister Catherine King said Australians were often not treated fairly by airlines.
“If people don’t get the service they expect, then they are entitled to their money or to an equivalent service,” Ms King said.
“And that’s really not the case in the consumer space.”
Catherine King will present the long-awaited White Paper on Aviation. (AAP: Lukas Coch)
The Charter of Rights would be administered by a new oversight body that could settle disputes, order airlines and airports to take remedial action, and report on airlines’ conduct.
The Aviation Industry Ombudsman Board can also refer allegations of misconduct for investigation and punishment.
Under the scheme, airlines must “show reasons” when justifying a flight delay or cancellation as part of their regular reporting to the government. The Ombudsman also has the power to request additional information.
In addition, airlines will be required to assist people in organising alternative travel arrangements.
In December, Qantas warned the government that the introduction of a compensation program would force the company to increase fares and reconsider the operation of certain routes.
A bad year for air traffic
Since the industry restarted following the COVID-19 pandemic, airlines have repeatedly made headlines.
Major airlines Qantas and Virgin are under scrutiny for their behavior as a de facto duopoly in the aviation industry, including accusations of squeezing competitors out of the market, selling tickets for flights that had already been canceled in Qantas’ internal systems, and sitting on hundreds of millions of dollars worth of flight credits.
A $21.4 million paycheck for former Qantas boss Alan Joyce caused a stir as the national airline fought against a finding that it had illegally fired hundreds of employees.
There was an uproar over the announcement that the government had rejected Qatar Airways’ expansion into Australia, which would have resulted in airfares being cut by at least a third.
And last month, regional airline Rex became the second airline to collapse this year after Bonza.
In these moments, the government has repeatedly pointed to its long-awaited White Paper on Aviation as the future solution for the sector.
As part of its White Paper, the Government will also set new minimum standards for airlines to make their services accessible to people with disabilities.
The standards define the responsibilities of airlines and airports for a person’s entire journey, from providing information to leaving the terminal,
The Government hopes that today’s announcement will thwart Coalition Senator Bridget McKenzie’s push to introduce “late payment” legislation in Parliament.
A bill to establish an aviation ombudsman is due to be presented next year. In the meantime, however, the government intends to appoint an interim ombudsman “from the minister’s portfolio”.
The system is expected to be operational by 2026.
