Federal Government to crackdown on Australian airlines

It’s something Aussie passengers have been waiting a very long time for following a massive move that will see airlines forced to compensate customers.

Australian airline customers could soon receive compensation for delayed and cancelled flights under a major overhaul of passenger protections.

Australian airline customers could soon receive compensation for delayed and cancelled flights under a major overhaul of passenger protections.

It’s something Aussie travellers have long battled with airlines over but that could soon change with the Albanese Government planning to establish a new watchdog — The Aviation Industry Ombudsman — to clamp down on the sector.

The external dispute resolution service would be able to force airlines and airports to provide compensation to consumers, publish reports on airline and airport behaviour — naming and shaming companies doing the wrong thing — and refer alleged misconduct to authorities.

The Albanese Government to establish a new watchdog to crack down on Aussie airlines.

Under the scheme, airlines will also have to explain the reasons behind flight disruptions as part of their regular reporting to the Federal Government.

The government has been examining options to hold airlines accountable amid an influx of passenger frustrations following cancelled flights and difficulties extracting refunds or travel credits out of the carriers.

It plans to pass laws for the creation of the new watchdog next year, with an interim Ombudsman to be appointed in the meantime.

The reforms will be announced at a press conference in Parliament House on Monday morning.

Adam Glezer, from Consumer Champion, has pushed for a compensation scheme for four years.

Companies will be named and shamed if they do the wrong thing.

“This is something I have been pushing for since 2020,” he said. ”It is definitely a step in the right direction.

“I’ve spoken to thousands of people that have been frustrated due to significant flight delays and cancellations and have been offered absolutely nothing in return.”

He said the lengthy refund process causes passengers significant amounts of stress and has had some clients battle for close to two years to navigate their way through the “minefield of a refund”.

“They have spent years attempting to get a refund because the process is so difficult.”

“I am ecstatic the penny has finally dropped with the government and they’ve realised that customers need rights.”

The new watchdog will be able to force airlines to compensate customers for cancelled and delayed flights.

Currently, Australia’s reimbursement offers are behind the rest of the world, with the UK, Europe and Canada all offering compensation models.

For example – inconvenienced passengers in Europe are entitled to between $A386 and $A926 (depending on the distance of the flight), if a flight is delayed by at least three hours with less than two weeks’ notice.

They are also entitled to free drinks and food at the airport if their flight departs late, and free accommodation and transport if it is delayed until the next day.

Federal Transport Minister Catherine King said ‘too many Australians have been left out to dry when flights are cancelled or disrupted’.

However, compensation rules do not apply in situations where extraordinary circumstances, such as poor weather, caused the delays.

In Australia, it’s not as generous with passengers only covered under consumer protection law and Mr Glezer said it needs to change.

He said what’s particularly important is having strict timelines where refunds have to be processed.

“As it stands airlines can say they will offer a refund to customers, but it can take months or years.”

A charter of passenger rights will also be drafted, setting out what refunds’ customers will be entitled to when their flights are delayed or cancelled.

Under the new scheme, a charter of passenger rights will also be drafted, setting out what refunds’ customers will be entitled to when their flights are delayed or cancelled.

Federal Transport Minister Catherine King said customers deserve to get their money back if they are owed it.

“It is time to take strong action to protect consumer rights,” Ms King said.

“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.”

The Australian Travel Industry Association (ATIA) is also welcoming the new scheme.

ATIA CEO Dean Long said it is a crucial step forward in protecting consumer rights, ensuring that airlines and airports meet their obligations.

“Too many Australians have been left stranded when flights are cancelled or delayed, with little recourse. This new scheme ensures that travellers will no longer face these challenges alone,” Mr Long said.