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Qantas treats Aussies as ‘second class citizens’ with refunds

Thousands of Qantas employees are getting an extra $1000 in bonus payments.

Thousands of Qantas employees are getting an extra $1000 in bonus payments. Photo: Getty

Australian flyers are treated like “second class citizens” by airlines when their flights are delayed or cancelled, with local laws well behind global standards, a leading consumer advocate says.

Consumer champion Adam Glezer has been reading the fine print in Qantas’ refund and compensation policies for Australia, the United Kingdom and Canada, and has found big differences.

The national carrier is offering flyers in other countries hundreds of dollars worth of compensation when their flights are delayed or cancelled, in addition to refunds for part or all of the original fare price.

Stronger legal protections in Europe, the UK and Canada force Qantas to make the promises.

But Qantas policies read very differently under Australian laws.

In Australia, Qantas policies provide broad consumer rights and small vouchers for meals, accommodation and taxis.

“It’s simply because they can. Our protections are significantly weaker here in Australia,” Glezer said.

“Australians appear to be treated as second-class citizens when it comes to their terms and conditions.”

An aviation white paper published by the Albanese government earlier this year backed tougher refund and compensation rules for airlines.

Public outcry over poor service from airlines helped motivate the move, particularly after hundreds of thousands of Australians struggled to get refunds from Qantas after COVID-19.

But Glezer says the proposals in the white paper are vague and don’t guarantee consumers the same level of compensation and refund rights already available to flyers in other countries.

“The aviation white paper was a huge missed opportunity,” he said.

“It was a chance to acknowledge the desperate need for compensation and automatic refunds for all cancellations. Neither issue was broached.”

Differences in refund policies

Qantas policies in the UK and Europe start by stating that consumers are entitled to both a refund and compensation when flights are cancelled within two weeks of making a booking.

Flyers are entitled to up to $967 in compensation when flights are cancelled without a comparable alternative being available, in addition to a refund of their fare paid within seven days.

An excerpt of Qantas’ compensation policy for Europe and the UK.

Qantas even refunds flyers for flights that have already landed if disruption on the next leg of their journey means the first flight is “no longer serving any purpose” in relation to their original plans.

Across the Atlantic in Canada, Qantas also has a comparably generous refund policy for flyers.

Cancelled or delayed flights attract compensation ranging from $431 to $1080 when customers have less than two weeks’ notice and alternatives cannot be arranged.

Similarly to the UK and Europe, this is in addition to separate refund rights for original airfares.

These compensation policies are in stark contrast to Qantas’ guidance for flyers in Australia.

The policy does reference refunds when alternative arrangements aren’t possible for cancelled flights, but the compensation is meagre compared to what is offered overseas.

It includes “$30 or locally equivalent” meal vouchers for overnight delays within 12 hours, but don’t worry, if it takes longer then the voucher limit rises to $50.

Up to “$200 or local equivalent value” is also available for accommodation on overnight delays.

Qantas also covers taxi charges for flyers facing overnight delays from their home cities.

Glezer said there are massive differences between what’s outlined for Australian flyers in Qantas’ policy and what those overseas are entitled to from the same airline under stronger laws elsewhere.

“Customers traveling throughout the EU/UK are entitled to up to approximately $1000 for a significant delay from their home airport, whereas in Australia, we get a food voucher,” he said.

“That says it all. It’s an embarrassment, and our government is 100 per cent responsible for not implementing the necessary protections.”

A table in Qantas’ Australian policy.

Australian airlines’ have a cosy relationship with politicians in Canberra, and the prevalence of free airline lounge memberships in public disclosures from members of Parliament raises questions about a conflict of interest, Glezer said.

“I don’t understand how MPs can make unbiased decisions when they and their spouses receive such significant gifts from the two major airlines in Australia.”

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