By Shane Wright
Airline passengers whose flights are cancelled or unreasonably delayed would get cash refunds and have alternative travel arrangements organised under an aviation customer rights charter and a standalone ombudsman for the beleaguered sector.
Transport Minister Catherine King, who will release her long-awaited aviation white paper on Monday, said a charter of rights and an ombudsman would be central to improving the flying conditions for millions of Australians.
Customers would find it easier to get cash refunds for cancelled or delayed flights under a federal government plan.Credit: Louise Kennerley
The independent ombudsman will oversee the aviation sector and have the power to direct airlines and airports to provide remedies to customers.
A key element to that power will be contained within a customer rights charter which King said would include the appropriate treatment of customers when their flights are cancelled or unreasonably delayed.
“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,” she said.
“Customers deserve to get their money back if they are owed it. Full stop. It’s time to take strong action to protect consumer rights with an Aviation Industry Ombuds Scheme and charter of customer rights.”
The ombudsman position would replace the Airline Customer Advocate. The advocate, funded by the airlines, had a 100 per cent increase in complaints in 2022 and solved fewer than half of them. Unlike the advocate, an ombudsman scheme would be independent and enforce resolutions.
Consumer advocates such as Choice and the Australian Competition and Consumer Commission have been pushing for an independent ombudsman scheme that would bind all airlines in Australia to act in the event of a disruption and simplify the way customers can exercise consumer guarantees.
The nation’s two major airlines, Qantas and Virgin, earlier this year shifted their position to support an industry ombudsman. But at that time, it was believed the government was considering either an ombudsman or a charter of consumer rights, not both at the same time.
Under the government’s plan, airlines will have to detail reasons for delays and cancellations as part of their regulator reporting. The ombudsman will be able to request additional information about specific flights and will have the power to refer for legal action instances of misconduct under competition law.
The Airline Customer Advocate’s most recent annual report found that refund requests accounted for the largest share of complaints it received through 2023. Virgin was the most complained about while Qantas took the longest to address issues.
Refund requests accounted for 38 per cent of all complaints while delays and cancellations accounted for another 35 per cent.
The customer rights charter, which the ombudsman will oversee, will not only cover refunds to people whose flights are cancelled or delayed.
It will also oversee the time frame for refunds, the length of flight delays that are considered unreasonable, the reasons for disruptions and communication between airlines and their customers when a flight is delayed or cancelled.
A consultation paper for the final shape of the ombudsman and the laws underpinning the position will be released with the industry white paper. Consultation on that will close in October with the full independent scheme in place by 2026.
An interim ombudsman, however, will be introduced before the legislation is put to the parliament next year.
The government will also use the white paper to drive better protections for people with a disability when travelling by air, after a large number of complaints about wait times, bans on assistance animals, restrictions on wheelchair access and damage to mobility devices.
Social Services Minister Amanda Rishworth said the government was committed to helping provide more inclusive services to those with a disability.
Transport Minister Catherine King will deliver a white paper into the aviation industry on Monday.Credit: Louise Kennerley
“People with disability continue to encounter inaccessible facilities and services at airports and face unhelpful practices and systems adopted by airlines, with evidence to this effect heard throughout the Disability Royal Commission,” she said.
“They have a right to fair treatment and to compensation when their essential equipment is damaged or destroyed.”
Airlines will be able to hold personal information on passengers, containing information such as assistance animals or wheelchair battery specifications, so the company can confirm in advance the required support for the passenger.
A new aviation-specific disability standard is being developed which may ban airline policies that limit the number of people on a flight requiring assistance.
Compensation to passengers whose wheelchairs or other mobility devices are damaged in transit may also be increased.
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