Government taking its time to become airborne with aviation reforms

In Australia’s monopoly-ridden skies, airline companies have alienated customers with temerity. Last year, one in every 27 domestic flights were cancelled and almost one in three delayed, leaving passengers abandoned with little hope of a refund.

Transport Minister Catherine King at Parliament House, Canberra, on Monday. Credit: Alex Ellinghausen

In quest of curbing such bad business practices and promoting an aviation sector that is safe, competitive, productive and sustainable, Transport Minister Catherine King released the long-awaited aviation white paper on Monday, almost one year after issuing a preliminary report for industry consultation. Directing regulation and policy for the next 25 years, initiatives include a passenger charter of rights, an independent aviation ombudsman and cracking down on the misuse of take-off and landing slots by airlines at Sydney Airport, the country’s biggest gateway.

Landing slots have been a vexed and confusing issue for years and, according to the Qantas/Virgin-dominated Airport Coordination Australia, erroneously blamed for contributing to budget carrier Bonza and Rex entering voluntary administration. Former Productivity Commission chair Peter Harris in 2020 delivered his report on slot management at Sydney airport. The white paper has committed to implementing his recommendations to give new airlines access, including a direction that would force airlines to be more transparent about flight cancellations and expand “slot misuse” so that major carriers will be less able to cancel flights without consequences.

The charter of rights and independent aviation ombudsman will replace the existing airline customer advocate which, funded by the carriers, has no binding powers. Under the new proposals, passengers whose flights are cancelled or unreasonably delayed would receive cash refunds and have alternative travel arrangements. The new ombudsman will also handle aircraft noise complaints. The industry will be required to provide more support to people with disability while Qantas’ dominance has prompted reconsideration of parliamentary travel.

The aviation sector has nobody else to blame for being pulled back to earth. Of course, aviation is not the only industry plagued by a lack of competition that hurts consumers. But thanks to disdainful companies, only airline customers have had to endure new airlines being established on dubious business models and Alan Joyce’s reign at Qantas.

Regrettably, some reforms will be slow. King said the government will take submissions on the rights of passengers until October, and the aviation ombudsman has been given until 2025 to write the new charter before taking complaints.

Given that our aviation cancellation and compensation regulations already lag so far behind those of other nations, the government’s tardiness is puzzling. There are plenty of precedents. The European Union (EU) and countries such as New Zealand and Indonesia provide crystal-clear guidance where passengers are entitled to full refunds due to varying delays, cancellations and overbooking.

Australia is a vast, isolated nation relying on air travel, both domestic and international, in a way that many other countries do not. The industry is in desperate need of a shake-up that puts customers and competition at the front of the queue, but the government is sure taking its time to deliver the reforms.

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