Consumers to gain from aviation initiatives

Airline passengers are set to benefit from consumer rights initiatives outlined in the Federal Government’s Aviation White Paper which was finally published in late August. The flying experience of passengers with a disability is also set to improve with the introduction of aviation-specific disability standards.

The Aviation White Paper includes 56 policies designed to set the direction of the country’s aviation sector towards 2050 to ensure it remains safe, competitive, productive and sustainable.

Consumer rights feature prominently in the paper, with the Government announcing plans for a long-awaited and much-needed independent aviation industry ombuds scheme, “to hold the sector accountable for delivering on its obligations to customers”, and a charter of customer rights.

“It was clear throughout our consultation process that the aviation customer experience has deteriorated post-COVID, with an urgent need to better protect the rights of the travelling public,” says the White Paper. It points to 2023, when one in every 27 domestic flights was cancelled and almost one in three was delayed arriving, with passengers finding it difficult to enforce their consumer rights. Airlines have taken too long to respond to customer issues, says the paper, and the existing Airline Customer Advocate, which is funded and run by airlines, has been ineffectual in resolving consumer complaints.

The charter will establish a regime for the fair and appropriate treatment of customers, including actions an airline must take in the event of flight delays and cancellations, says Catherine King, Minister for Infrastructure, Transport, Regional Development and Local Government. Airlines will now have to “show cause” when flights are delayed or cancelled.

While the initiative does not go as far as European compensation schemes, the charter will establish what is expected of airlines in relation to customer entitlements to refunds across all fare types for flights that are disrupted, cancelled or unreasonably delayed. In addition, it will establish appropriate and prompt timeframes for providing refunds; the length of flight delays that are considered unreasonable; reasons for disruptions, delays and cancellations that are considered within the airline’s control; and accessible and timely communication with passengers.

A new ombudsman for the aviation industry will oversee the charter, handle complaints, publish reports on airline and airport conduct, recommend government policy changes and refer instances of misconduct to the Australian Competition and Consumer Commission. The Government has released a consultation paper to support the design of the aviation industry ombuds scheme, which is expected to be fully operational by 2026. Meanwhile, increased transparency in relation to airline performance will be made possible through the publication of more data on performance and competition.

Recognising that “people with disability continue to face significant barriers to air travel that also require government intervention to address”, the Government will establish new aviation-specific disability standards and review industry compliance with those standards, requiring airlines and airports to co-ordinate their actions in assisting people with disability. The standards will be co-designed with people with disability and developed in consultation with industry. The new standards will affirm the rights people with disability have during air travel and the obligations of airlines and airports.

Airlines will be required to offer passenger assistance profiles that will allow passengers with disabilities to let airlines know in advance their accessibility requirements, which could be stored by the airlines and used for future bookings.

The Government also plans legislation to increase the maximum compensation entitlement for passengers whose wheelchairs or other mobility devices are damaged or lost by domestic carriers. It is also considering options to lift the existing airline limits on the number of passengers requiring assistance that can travel per flight. The country’s major airports will also be required to demonstrate how they will provide disability access in their airport master plans and major development plans.

Competition issues to support better customer outcomes also feature in the White Paper. The country’s relatively small population, vast geographical distances and inherent challenges of operating in the aviation market have historically prevented the emergence of multiple airline entrants. Without new entrants to the market, incumbent airlines lack incentive to innovate and improve service, it says. The Government is introducing changes to the slot management arrangements at Sydney Airport, making it easier for new airlines to obtain slots, while penalties will be introduced to address anti-competitive airline behaviour.

Recognising that regional aviation is critical for Australia, the Government says it will protect regional aviation through its ongoing response to Rex Airlines entering into voluntary administration, while the Productivity Commission will review regional airfares.

When it comes to airport noise and community relations, the aircraft noise ombudsman is set to become independent of air navigation service provider Airservices Australia and the Department of Defence, with the Government seeking to improve engagement with communities affected by changes to airspace and flight paths.

The Government says it will publicly track the implementation of White Paper initiatives and publish annual status updates, with a formal evaluation planned for 2029.