The aviation industry experienced a body blow during the pandemic,but the goodwill of the Australian public has been sorely tested,with flight delays and cancellations on top of limited schedules as our ability to travel returns.
In November last year, across Australia’s busiest routes,the “Golden Triangle” of Sydney,Melbourne and Brisbane.
Statistics like that explain the growing chorus of calls for better consumer protections in a number of ways.
Slots at Sydney Airport are in high demand.Getty
A 2020 review called for an overhaul of the “slot” system to make it easier for new entrants,both domestic and international,to fly in and out of Sydney Airport.
This followed allegations of anti-competitive behaviour,with airline carriers accused of “slot-hoarding” at airports to keep fares high and reduce competition – an accusation that is furiously denied.
Despite the denials,federal Transport Minister Catherine King last month announced a transparency overhaul to compel airlines to give in regular audits.
The moves by the minister last month are welcome,but there is a strong case for further improvement around customer protections for compensation when flights are delayed or cancelled.
Compensation now available to travellers in Australia when a flight is delayed or cancelled varies markedly,depending on the policy of an individual airline regarding replacement flights as well as covering expenses incurred by delays.
The European Union (EU) and countries such as New Zealand and Indonesia,by contrast,provide crystal clear guidance.
In the EU,passengers are eligible for compensation if their flight arrives at the destination more than two hours after it was originally scheduled,whether that’s a result of delay,cancellation or overbooking. Once a flight is delayed by more than five hours,customers are entitled to a full refund of the ticket price and a return flight to their first point of departure.
In New Zealand,domestic airlines must compensate passengers who are delayed or have flights cancelled due to mechanical issues or lose their seat due to overbooking. Indonesia,too,has guidelines ensuring compensation when a domestic flight is delayed by four or more hours.
As we report today,federal independent MPs Monique Ryan and Andrew Wilkie are calling for an aviation ombudsman to replace the existing Airline Customer Advocate,which critics say is limited in its ability to address issues due to a lack of clear guidelines.
Both Ryan and Wilkie have flagged how difficult it is for Australian travellers to be compensated when their travel plans go awry.
As Ryan says:“It is part of the airlines’ business model to make it extremely challenging for passengers to seek compensation. That has to stop.”
The Australian Competition and Consumer Commission also wants to see an independent airline ombudsman with the ability to make binding decisions,as well as a targeted and fit-for-purpose compensation scheme for delayed or cancelled flights.
King has said the aviation white paper,due to be made public later this year,will include consideration of how to better protect consumers.
“It’s clear that the aviation sector is not delivering the outcomes that Australians expect,” she said.
We are a vast,isolated nation that relies on air travel – both domestic and international – in a way that residents of many other countries do not. A robust and fit-for-purpose set of consumer protections would be greatly welcome.
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