Australian airlines: Watchdog to be established with a focus on cancelled and delayed flights in aviation reform

Australian jet-setters could soon find it easier to get refunds and customer support when their flights are delayed or cancelled.

The aviation industry has come under the microscope after the nation’s largest airline Qantas copped criticism over its alleged role in the cost-of-living crisis and eye-watering executive pay packets, while smaller carriers like Bonza and Rex have crumbled under financial pressures.

On Monday, the federal government will map out ways to improve sustainability, competitiveness, efficiency and safety within the sector when it releases its long-awaited Aviation White Paper.

As the number of Australian travellers rebounds to pre-pandemic levels, Transport Minister Catherine King says it’s time to take action and protect consumer rights.

“Too many Australians have been left out to dry when flights are cancelled or disrupted and it’s impossibly complex to get a refund or even contact a company representative,” she said.

“Customers deserve their money back if they are owed it.”

The Commonwealth has committed to establishing an industry watchdog called the Aviation Industry Ombuds Scheme that will direct airlines and airports to provide remedies to customers, issue guidance on their obligations to travellers, report on the industry’s conduct and make recommendations to the government.

It will also deliver an Aviation Customer Rights Charter, which will set out “fair and reasonable” conduct for how airports and airlines should treat their customers.

Refund entitlements, appropriate time frames for compensation, the length of delay that is considered unreasonable, airline-to-customer communications and reasons behind a delay or cancellation will all be covered under the charter.

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

In 2023, about one-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.

People with disability will also be better treated by airlines and airports as the white paper attempts to address barriers to access.

Social Services Minister Amanda Rishworth says these commitments will help make Australia more inclusive.

“People with disability continue to encounter inaccessible facilities and services at airports and face unhelpful practices and systems adopted by airlines,” she said.

“They have a right to fair treatment and to compensation when their essential equipment is damaged or destroyed.”

New aviation-specific standards will outline the obligations of airlines and airports to passengers with a disability.

The industry will also be required to co-ordinate use of their facilities when helping people with disability.

Travellers whose wheelchairs or mobility devices are damaged or lost in travel could also receive better remedies as the government attempts to increase the maximum compensation.

And airport development plans will have to show ways they will enable access for people with disability.