Briefly:
Unions, industry groups and airlines have submitted proposals to a parliamentary inquiry into the protection of airline passengers.
There are calls to strengthen the protection of domestic travelling consumers, including the adoption of models similar to those in place within the European Union.
What then?
The federal government is preparing a white paper on aviation that will look at wide-ranging reform of the sector.
Australian air passengers should be protected by a “Bill of Rights”, including compensation for delays or cancellations unless they are beyond the airline’s control, a national association of lawyers and academics has said.
But airlines – including Qantas, Virgin and Air New Zealand – have argued that passenger compensation schemes similar to those in Europe and North America will not improve flight delays and cancellations.
Their comments come among others from a Senate inquiry into so-called “pay when late” legislation introduced in the federal parliament.
How often are flights cancelled and delayed?
The investigation follows increased scrutiny since the start of the pandemic, with consumers highlighting high ticket prices and frustration over flight delays and cancellations.
During the holiday period in January, nearly a third of flights were cancelled or delayed.
There have been signs of improvement since the beginning of the year.
The average long-term performance for on-time arrival is about 80%, while it is about 82% for on-time departure.
But the latest figures for May show that on-time arrivals and departures were below the long-term average, while the cancellation rate was higher than average.
The Darwin-Perth route had the worst on-time performance.
The Townsville – Cairns route has the highest on-time arrival and departure rates.
Flight cancellations were highest on the Melbourne-Sydney route, which came in second after Sydney-Melbourne at around 6 per cent for both.
But when compared to similar numbers from last year, there were improvements in both cancellations and delays.
Why is this happening now?
Earlier this year, The coalition has introduced a bill called “Payment on Delay.” Which aims to increase protection for domestic travelers.
The government has yet to announce whether it will support the bill, with Labour senator and former Transport Workers’ Union general secretary Tony Sheldon describing it as “nothing more than a political stunt”.
The new legislation would create new protections for passengers by requiring airlines to provide refunds or compensation if an airline chooses to cancel or delay flights, if a passenger is denied boarding a purchased flight, or if baggage is lost or damaged.
Airlines will also be obliged to ensure that passengers complete their “itinerary” when delays are beyond their control, such as in weather conditions or security incidents.
The code of conduct would also set some minimum standards for the treatment of passengers, including requirements that children under 14 years of age be seated near their parents or guardian.
Calls to strengthen consumer protection
In a submission to the inquiry, the Australian Bar Association said there was no single framework setting out passengers’ rights.
The lack of a framework has led to inconsistent rights for Australian consumers, said the national association, which includes lawyers and academics.
“For example, a delayed flight from London or Paris to Sydney would entitle passengers to compensation regardless of the airline. However, in the opposite direction, a delayed flight from Sydney to London or Paris would entitle passengers travelling on flights operated by UK or EU airlines to compensation,” the application states.
“While passengers on flights operated by non-UK or non-EU airlines (such as Qantas, Emirates or Qatar) will not be subject to the flight delay compensation scheme.”
The group endorsed a “Declaration of Rights” that would include:
- Communication requirements and standards of care in the event of delay
- Unified Claims Processes
- Legal requirements for passengers to choose between a refund, travel credit or a seat on an alternative flight
- Commitment to seating minors near adults in their group at no additional cost.
- Uniform regulation of rights for lost or damaged baggage
IATA said airlines have a strong incentive to operate on time and that “compensation-based punitive frameworks” fail to take into account factors outside airlines’ control such as airport operations.
Air Australia and New Zealand (A4ANZ) said weather was the “biggest contributor” to flight disruptions.
“During the recent Australian summer season, a number of extreme weather events (storms, floods and cyclones) contributed to higher than average delay and cancellation rates,” she said in her presentation.
The Transport Workers Union said in a memorandum demanding better service and improved safety conditions that an independent regulatory body for the aviation industry is needed.
“For passengers to experience decent service and safety standards, the airline industry needs to be regulated by an independent decision-maker to redress the balance,” the association said in its report.
“Australian passengers and aviation workers will continue to see poor outcomes with appropriate regulatory oversight, regardless of whether there are measures in place to compensate for delays or cancellations.”
What are some international examples of consumer protection?
Passengers Travel within the European Union They are entitled to compensation if their flight is cancelled less than 14 days before the departure date.
The EU also said airlines must prove that passengers were informed of their flight cancellations.
Passengers who experience a delay are entitled to a refund and a return flight depending on the delay and distance of the flight.
in Canada, Airlines are responsible Up to $2,550 in case of loss or damage to passenger baggage during transportation
There is also compensation for passengers depending on the length of the delay or cancellation.
For major airlines, compensation ranges from $434 for delays of up to six hours, to up to $1,085 for delays of more than nine hours.
Smaller airlines are also liable to pay compensation ranging from $135 to $542 depending on the level of delay.
What do Australia’s major airlines think?
Airlines have criticised suggestions that a compensation system similar to those in Canada and the European Union would be a “silver bullet” for passengers.
A4ANZ, whose members include Qantas, Rex, Air New Zealand and Virgin Australia, said in its report that consumer complaints had increased in the EU since it introduced its consumer protection scheme.
“In Canada, another jurisdiction often held up as an example for Australia to follow, consumer protection regulations introduced in 2019 have led to a large and growing backlog of unresolved consumer compensation complaints (71,000 as of April 2024),” the note said.
In its presentation, Virgin Australia said existing consumer protection laws were “fit for purpose”.
“It provides a comprehensive framework for consumers including guaranteed rights and adequate redress,” its filing said.
Airlines are already working to add these rights through their compensation policies.
“Automatic and explicit penalty systems such as the EU’s passenger compensation scheme may lead to higher prices, but they do not necessarily improve customer outcomes or operational performance.”
