Need to know
- The federal government has committed to establishing a new charter of aviation rights for Australian travellers
- An independent aviation ombudsman will replace the industry-funded Airline Consumer Advocate, recipient of a 2021 CHOICE Shonky
- Airlines will also have to provide refunds instead of credits and meet new standards of conduct for the treatment of people with disabilities
In a forward-looking white paper that charts a new era in airline travel, the federal government has committed to establishing a number of flyer protections that have long been lacking for Australians. The absence of such rights has made air travel an especially iffy prospect in recent years.
Among the proposed measures is the establishment of an independent aviation ombudsman service with the power to compel airlines to pay compensation when warranted, a move CHOICE has long endorsed.
It could mean flyers will get their money back when airlines fail to meet their basic obligations, such as when flights depart unreasonably late – or don't take off at all.
An end to self-serving self-regulation
External dispute resolutions with positive outcomes for travellers would be a giant step for aviation consumers. The current industry-funded Airline Customer Advocate (ACA) service, ostensibly set up to resolve customer disputes, has fallen well short and was the recipient of a 2021 CHOICE Shonky.
Several CHOICE investigations have highlighted that the ACA was never more than a powerless complaint-forwarding service that has done nothing to improve the industry's rough treatment of its customers.
The ombudsman legislation will set out a customer rights charter, spelling out the circumstances under which passengers must be refunded.
When flights are delayed or cancelled, consumers must currently navigate complex terms and conditions to understand what their often-disappointing rights are
CHOICE director of campaigns Rosie Thomas
Airlines will be required to report valid reasons to the ombudsman for delays or cancellations and the independent service will be able to refer cases to the ACCC when the reasons don't stack up.
The government's commitment to cleaning up the industry has been a long time coming. In December 2023, CHOICE research revealed that two out of five of the 9000 airline customers we surveyed had experienced a flight delay or cancellation over the previous year, and that the chances of a flight leaving on time that holiday period were about 50/50.
"When flights are delayed or cancelled, consumers must currently navigate complex terms and conditions to understand what their often disappointing rights are," says CHOICE director of campaigns Rosie Thomas.
"The Aviation Customer Rights Charter has the potential to give consumers clearer and stronger rights. At a minimum, we want to see clear rights to automatic refunds, similar to requirements recently introduced in the US."
The final airline ombudsman scheme is expected to come into operation in 2026, with an interim ombudsman service set up before that.
Refunds instead of credits
Another seismic shift in the way airlines will have to treat passengers is the proposed abolishment of flight credits in lieu of refunds, an airline tactic that has left countless customers out of pocket and led to a 2022 CHOICE Shonky for Qantas.
Earlier that year, we reported that the airline was hoarding around $1.4 billion in unused flight credits and future bookings, which many customers were unable to redeem. As part of the new customer rights charter, passengers will have money refunded directly back to their credit cards or other payment platform.
Better treatment of people with disabilities
The government paper also promises to establish enforceable standards for the treatment of people with disabilities, an apparent response to the many reports of the mistreatment of such passengers and the industry's long failure to accommodate their needs.
Among the proposed measures is a database airlines can refer to outlining the specific requirements of such customers.
Of those who pursued a refund or compensation for a cancelled flight, one in five had to wait over six months
CHOICE director of campaigns Rosie Thomas
In all, the government's proposals call for a range of fundamental air travel rights to be imposed on an industry that has long avoided providing them without facing consequences.
"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," Thomas says. "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."
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