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Cash refunds for stranded travellers under airline shake-up

Airlines face crackdown

Source: Australian government

Plane passengers could soon be entitled to compensation or refunds for delayed or cancelled flights under a new watchdog.

Stronger consumer protections were among 56 recommendations in the federal government’s Aviation White Paper released on Monday, providing a blueprint for the sector to 2050.

The white paper recommended setting up an Aviation Industry Ombudsman Scheme, which will have powers to compel airlines to provide support to passengers and give travellers more rights.

An interim ombudsman will be appointed before legislation is introduced in 2025.

In 2023, about a third of flights failed to leave on time, while 3.7 per cent – roughly 16,000 flights – were cancelled, according to a report on the Bureau of Infrastructure and Transport Research Economics.

An Aviation Customer Rights Charter will also be set up to provide a baseline for service passengers can expect on flights.

Airlines will also be forced to explain the reasons its flights were cancelled or delayed.

Infrastructure Minister Catherine King said the changes were critical to ensure passengers had better experiences in the air.

“The aviation customer experience has deteriorated post-Covid, with an urgent need to better protect the rights of the travelling public,” she said.

King said customers should get what they had paid for.

“You have bought a ticket, the flight does not go or the flight does not when you expect it to go. You should expect that as the service that is provided, and so really this is about providing remedies to consumers who have found it very difficult to pursue these issues,” she said.

Consumer organisation Choice welcomed Monday’s announcements.

“Choice has been campaigning for fairer travel rights for years, and we know that making a complaint about an airline is frustrating and often far too slow,” campaigns director Rosie Thomas said.

“Last time we surveyed consumers about airline cancellations and delays, we found that of those who pursued a refund or compensation for a cancelled flight, one in five had to wait over six months.”

The release of the white paper comes after smaller carrier Bonza stopped operations in Australia, while regional airline Rex entered administration.

Major airlines such as Qantas and Virgin Australia have also come under fire for having an entrenched duopoly on domestic routes.

The white paper said steps would be taken to resolve concerns about aviation competition. Incentives will be reduced for anti-competitive misuse of slots at major airports.

“Historically, it has been challenging for the Australian aviation market to accommodate a third major carrier,” the white paper said.

“Despite these setbacks, ongoing population and market growth, combined with structural increases in capacity in [Brisbane, Sydney and Melbourne routes], could still create future opportunities for new carriers to scale up operations.”

The white paper also made recommendations to review policies that limited the number of people on flights who need assistance for disabilities.

Under new aviation standards for disability, there will also be increased compensation for people who have wheelchairs or other devices damaged while flying.

There will also be a review to determine how regional services can be improved.

Recommendations also include setting up an ombudsman on aircraft noise, as well as improvements to transparency about the noise impacts from flights.

There will also be work on airspace reform, following the increased used of other aircraft such as drones.

“The use of emerging aviation technology … will result in a significant increase in aircraft movements and change the way passengers and freight move within Australia,” the white paper said.

-with AAP

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