Federal government to establish aviation industry ombudsman to handle disputes

A new agency will be set up to monitor airlines and help customers receive cash refunds for delayed or cancelled flights.

A ombudsman will be set up to police Australian airlines and airports under a new scheme to protect passenger rights.

Transport Minister Catherine King is expected to announce the establishment of an aviation industry ombudsman on Monday as she releases the Albanese government’s long-awaited aviation white paper.

“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 is time to take strong action to protect consumer rights with an Aviation Industry Ombuds Scheme and Charter of Customer Rights.”

Transport Minister Catherine King will release the aviation white paper on Monday. Picture: NewsWire / Nikki Short

The move comes two years after the government flagged plans to review the aviation sector and set long-term policies and reforms for the industry’s growth.

Under the scheme, an independent agency will be set up to resolve disputes between airlines and passengers by 2026.

The new body will have powers to compel airlines and airports to provide remedies to customers and will be tasked with publishing reports into their conduct.

It will also be called on to establish a framework of traveller’s rights, including when passengers are entitled to cash refund for cancelled or delayed flights.

The ombudsman will handle complaints. Picture: NewsWire / Simon Bullard.

Airlines will be mandated to report reasons for delays to the government, with the effort hoped to increase transparency and public accountability.

The announcement comes after the Australian Consumer and Competition Commission reported cancellation rates had fallen below the long-term average for the first time since October 2020 in its latest quarterly domestic aviation monitoring report.

Australia’s aviation industry has been rocked this year with the collapse of Bonza and uncertain future of Rex leading to concerns prices could increase for the remaining domestic carriers.

Meanwhile, the government will also strengthen the rights of people with disability while travelling and enforce stricter compliance by airlines.

“Through our consultation we heard clearly that the treatment of people with disability by the

airlines and airports is not good enough,” Ms King said.

“People have been left stranded on planes, forced to return to their departure port or had to put up with poor treatment due to a lack of access to appropriate facilities at their destination.”

Social Services Minister Amanda Rishworth said new standards would be developed and better scrutiny for airlines and airports would be enforced to “create a more inclusive society for the more than one in five Australians with a disability.”

“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,” Ms Rishworth said.

“They have a right to fair treatment, and to compensation when their essential equipment is

damaged or destroyed.”

Originally published as Federal government to establish aviation industry ombudsman to handle disputes