Monday, September 16, 2024

Should airlines have to compensate domestic travellers when flights are cancelled or delayed?

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In short: 

Unions, industry groups, and airlines have made submissions to a parliamentary inquiry into Airline Passenger Protections.

There are calls to strengthen consumer protections for domestic travellers including adopting models similar to those within the European Union.

What’s next? 

The federal government is working on an aviation white paper that will consider broad reform of the sector.

Australian plane passengers should be protected by a “bill of rights,” including compensation for delays or cancellations unless it is beyond the airline’s control, according to a national association of lawyers and academics.

But airlines — including Qantas, Virgin and Air New Zealand — have argued that passenger compensation schemes similar to those in Europe and North America won’t improve flight delays and cancellations.

Their statements are among others to a Senate inquiry into the so-called “pay on delay” legislation introduced into federal parliament.

How often are flights being cancelled and delayed?

The inquiry was prompted by increased scrutiny since the pandemic, with consumers highlighting rising ticket prices and frustration over flight delays and cancellations.

Over the festive period in January, almost 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 arrivals is about 80 per cent, while about 82 per cent for on-time departures.

But the latest figures for May show on-time arrivals and on-time departures were lower than the long-term average. While the rate of cancellation was higher compared to the average.

The Darwin–Perth route performed the worst for on-time arrivals.

The Townsville–Cairns route had the highest on-time arrival and departure times.

Cancellations were highest for the Melbourne–Sydney route, which was second to the Sydney–Melbourne route with about 6 per cent for both.

But when compared with equivalent figures from last year, there have been improvements in both cancellations and delays.

Why is this happening now?

Earlier this year, the Coalition introduced a bill called “pay on delay” which seeks to increase protections for domestic travellers.

The government has not declared whether it will support the bill, with Labor senator and former Transport Workers Union secretary Tony Sheldon describing it as “nothing more than a political stunt”.

The legislation would put in place new protections for passengers by obliging airlines to provide refunds or compensation where an airline chooses to cancel or delay flights, where a passenger is denied boarding for a purchased flight, or where luggage is lost or damaged.

Airlines would also be required to ensure passengers “complete their itinerary” where the delay is outside of their control, such as in weather and security events.

The code of conduct would also create some minimum standards of treatment for passengers, including requirements that children under 14 be seated near their parent or guardian.

Calls for stronger consumer protections

In its submission to the inquiry, the Australian Lawyers Alliance said there wasn’t a single framework outlining passenger rights.

The national association that includes lawyers and academics said the lack of a framework has led to inconsistent rights for Australian consumers.

“For example, a delayed flight from London or Paris to Sydney qualifies passengers for compensation regardless of the airline. However, in the opposite direction, a delayed flight from Sydney to London or Paris will entitle passengers flying on flights operated by UK or EU airlines with compensation,” the submission read.

“Whilst passengers on flights operated by non-UK or non-EU carriers (such as Qantas, Emirates or Qatar), will not fall under a flight delay compensation scheme.”

The group backed a “bill of rights” which would include:

  • Communication requirements and care standards in the event of delays
  • Standardised claims processes
  • Legal requirements for passengers to choose between a refund, travel credit or seat on an alternative flight
  • Obligation to seat minors close to adults in their party at no additional cost
  • Standardised regulation of lost or damaged baggage entitlements

The International Air Transport Association said airlines had a strong incentive to operate on time and “punitive, compensation-based frameworks” failed to take into account factors beyond the carriers’ control such as the operations of airports.

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