Australian airlines could soon be forced to compensate passengers for delays and cancellations

We can all relate to the exasperating feeling of waiting at the airport for hours on end, only to be told our flight had been delayed or cancelled. It can throw a wrench in our plans, cause extra expenses, and sometimes completely ruin our holiday.

In the past, there was little we could do about it, but it looks like things are about to change for Aussie travellers!



Recent discussions suggest that Australian airlines may soon be required to compensate passengers for flight delays and cancellations. This news is music to our ears, especially since we all know that a measly $15 food voucher just doesn't cut it when we're stuck at the airport.

We would much rather receive proper compensation for our inconvenience, right? That is why many are calling for airlines to take responsibility.


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Australian airlines could soon be forced to pay passengers compensation for delayed or cancelled flights as the government considers its Aviation White Paper. Credit: Unsplash/Anete Lūsiņa.



As the government mulls over its Aviation White Paper (which will set the long-term policies to guide the next generation of growth and innovation in the aviation sector), set for release next year, four organisations have pitched the idea of compensation for affected passengers.

The Australian Competition and Consumer Commission (ACCC), consumer advocate CHOICE, the Australian Lawyers Alliance (ALA), and advocacy group Consumer Champion have all raised the idea with the government, and they're not mincing words. According to them, Australia's laws are a 'long way behind' the rest of the world when it comes to protecting passengers.



They're pointing to the European Union's airline laws, where passengers can receive up to €600 ($970 AUD) in compensation for delays of over three hours, depending on the distance of the trip.

In fact, if delays go on for too long, passengers can even opt for a refund, which must be repaid by the airline within seven days. Of course, there are some exceptions - the airline won't have to pay up if the delay is caused by something outside their control, like bad weather or air traffic control. But it's still a step in the right direction!



Meanwhile, in Australia, things are a bit of a mixed bag. Each airline has its own compensation scheme, which can make things confusing for passengers. And while the Australian Consumer Law does apply, there are no specific rules around how much compensation airlines should provide or how quickly they need to do so.

So if you're stuck waiting around at the airport due to a delayed or cancelled flight, you might be left wondering what kind of compensation you're entitled to - if any at all. Let's hope the Australian government takes note and brings our laws up to speed as soon as possible.


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The organisations suggest considering the European Union's airline laws, where compensation is provided to passengers with delays of over three hours, as a model. Credit: Pexels/Anna Shvets.



Adam Glezer, the founder of Consumer Champion, is not holding back when it comes to criticising Australia's lacklustre flight compensation policies. Apparently, he first raised this issue with the government back in 2020.

'The reality is Australia is a long way behind other countries,' he said, clearly frustrated with the lack of progress. 'Until we actually have consequences for airlines delaying or cancelling flights willy-nilly, then nothing will change.'



The ACCC also called out the extensive cancellations, delays, and mishandled bags that Australian consumers have experienced in the post-pandemic period. According to them, a whopping 46% of domestic flights were delayed in July 2022, with 6.4% of flights cancelled - a record high.

And as it stands, current laws allow airlines to sell tickets without any guarantee of departure times, which means there are little to no repercussions if they decide to cancel flights at the last minute.



Meanwhile, according to Jodi Bird, CHOICE Australia's money and travel expert, the compensation offered by Australian airlines is often buried in terms and conditions, making it difficult for passengers to know what they're entitled to.

He notes that typically if a flight with a cheaper carrier is delayed in Australia, passengers might receive a voucher that can buy them a coffee — if they're lucky.


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Currently, Australian airlines offer different compensation schemes, and there are no flight-specific rules regarding the amount and time frame of compensation. Credit: Unsplash/Skitterphoto.



Bird believes that the EU model, which is clear and consistent across airlines, is an excellent example to follow. He points out that the US and Indonesia also have regulated compensation schemes and that Australia is lagging behind the rest of the world.

'Australian airlines don't seem to care much about customer service after they've sold you the ticket, and something like this would mean they'd have to,' he said. It's time for Australian airlines to step up and prioritise the needs and rights of their passengers.



The ALA agrees and believes that the lack of such a scheme puts Australia behind other countries in terms of protecting passengers' rights.

Australian passengers currently have to navigate legal loopholes to receive compensation for flight delays, and even then, it is not always available. The ALA believes it is time for Australia to have its own straightforward and easy-to-understand compensation scheme.

Key Takeaways

  • Multiple organisations and consumer advocacy groups in Australia are pushing for a compensation scheme for passengers whose flights are delayed or cancelled.
  • Currently, no specific laws govern compensation for delayed or cancelled flights, leaving airlines free to offer differing compensation schemes or none at all.
  • These groups believe Australia needs to catch up to other countries, including the EU and the US, which have established compensation schemes for such events.

The lack of a comprehensive compensation scheme for flight delays and cancellations in Australia has long been a source of frustration for travellers. However, recent discussions and advocacy from various consumer groups and organisations have sparked hope for change.



As we await the release of Australia's Aviation White Paper next year, the question remains: will the government finally introduce a compensation scheme for delayed and cancelled flights in the country? Do you think the proposed EU model would be a good fit for Australia? And what would you like to see as fair compensation for delayed or cancelled flights?

We would love to hear your thoughts in the comments below. Stay tuned for more updates on this matter, and till then, safe travels!
 
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About time some consideration was given to compensating passengers due to inconvenient situations like those mentioned above. $970 per person is possibly a good starting point & then the airlines can argue the case from there. Bad weather would certainly be an exception. Delays due to maintenance would not be acceptable. An airline should be able to find accommodation for passengers free of cost to passengers &....... I could go on forever but these are a start.
 

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