Federal government unveils aviation white paper, new industry ombuds scheme

The federal government is vowing to strengthen the rights of airline passengers, including people with a disability, through a raft of reforms.

Airlines would be forced to give passengers refunds for disrupted, cancelled or unreasonably delayed flights under a desperately-needed crackdown on poor customer service.

The federal government will on Monday announce a powerful new Aviation Industry Ombuds Scheme will be established to handle complaints about airlines and airports as it unveils its highly-anticipated aviation white paper.

A raft of reforms will also be made to improve the treatment of passengers with a disability, amid damning evidence of inadequate compensation for wheelchair damage, people being left stranded on planes and refused assistance animals.

Transport Minister Catherine King said customers deserve to get their money back if they’re owed it. Picture: Martin Ollman

Transport Minister Catherine King, who has been under mounting pressure to fix the industry, said it was time to take strong action to protect consumer rights.

“Too many Australians have been left out to dry when flights are cancelled or disrupted and it’s impossibly complex to get a refund or even contact a company representative,” Ms King said.

“Customers deserve to get their money back if they are owed it. Full stop.”

The white paper found the nation’s Airline Customer Advocate had failed to fix systemic issues around refunds and complaints.

Currently, passengers whose flights are delayed or cancelled may be entitled to a refund if the airline cannot offer “suitable alternative arrangements”.

Under the proposed scheme, a charter of customer rights will outline the appropriate treatment of customers, including when flights are cancelled and delayed.

This will include circumstances where cash refunds should be offered instead of travel vouchers, the length of delays that are considered “unreasonable”, communication with passengers, and appropriate support such as meals, accommodation, and monetary compensation.

Under the new scheme, airlines would be forced to give passengers refunds for disrupted, cancelled or unreasonably delayed flights. Picture: Ben Clark

Airlines will also have to report reasons for delays and cancellations to the government.

Data released last week showed almost a third of all flights were cancelled or delayed in July.

Under an EU-style compensation scheme, proposed by the Australian Lawyers Association, airlines would be forced to pay passengers on the Melbourne to Sydney route $370 if they were late by three hours or the flight was cancelled.

A consultation paper will be released on Monday, with submissions about the design of the ombuds scheme to close in October.

The government will appoint an interim ombudsperson from the department to draft the customer rights charter before legislation is introduced next year.

The ombuds scheme – which is expected to be formed by 2026 – will have the power to direct airlines and airports to provide remedies to consumers, issue guidance on their obligations, publish reports about conduct, make recommendations to government and refer misconduct to the consumer watchdog for investigation and enforcement.

The government is also considering banning policies that limit the number of passengers who require assistance on a flight, and increasing maximum compensation for those who have their mobility devices damaged or lost by domestic airlines.

People with a disability will co-design new aviation-specific disability standards that will reinforce airlines’ obligations, with compliance to be publicly reported.

Social Services Minister Amanda Rishworth said: “People with disability continue to encounter inaccessible facilities and services at airports and face unhelpful practices and systems adopted by airlines”.

“They have a right to fair treatment, and to compensation when their essential equipment is damaged or destroyed,” Ms Rishworth said.