The outcome of the Aviation Consumer Protection scheme is being closely watched by travellers, consumer rights groups, and the international aviation community.
The SmartGate system has caused airport queues in Sydney and Melbourne.Credit: Fairfax
In a separate economic and social impact report, Melbourne Airport noted that “a seamless border” was vital for a good passenger experience. “Without modernisation, increased traveller volumes risk longer queues and reputational damage for the nation.”
The primary legislation for aviation consumer protections is contained in a proposed Aviation Consumer Protections Charter, which will be enforceable by the Aviation Consumer Protection Authority. A separate consumer ombuds scheme will handle individual consumer complaints that can’t be settled directly with airlines and airports.
A spokesperson for Catherine King, the federal minister for infrastructure and transport, said the consultation process on the design of the new aviation consumer protections includes a number of options for governance structures and regulated entities.
“We want to ensure passengers get what they pay for and when things don’t go to plan, are entitled to remedies like prompt rebookings or refunds, and access to food and accommodation.
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“That is why we are focussing on activities relating to airlines and airports, where customers have a direct relationship with a service provider.”
Ian Jarratt, of the Queensland Consumers Association, noted that even the consultation process for the aviation consumer legislation was “very complicated”.
Adding to the complexity is the risk that having the consumer ombuds scheme housed under the transportation minister, alongside a separate Aircraft Noise Ombudsman, may limit its ability to evolve with the industry, he warned.
The aviation sector is expected to undergo changes as airlines globally embrace more dynamic pricing and AI for marketing and loyalty programs. “If the ombuds is in a department, it lacks flexibility,” said Jarratt.
The aviation consumer ombudsman should be set up like the Telecommunications Industry Ombudsman or the Australian Financial Complaints Authority “so they’re not part of a department,” he said.
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Jarratt also believes consumer law should be able to address complaints about problems caused by websites and apps, which the proposed legislation appears to avoid.
The Albanese government has so far ruled out clear compensation for avoidable airline delays or cancelled flights.
In its submission, the Australian Lawyers Alliance described its “disappointment” with the primary legislation “that the government has declined to include clear statutory compensation for delays and cancellations within an airline’s control”.
The government has suggested such a scheme could create a funding burden for consumers. However, European air control calculated in 2022 that the estimated cost of compensation per passenger for the industry in the EU and UK was only between US60¢ (93¢) and US$1.20.
The AAA is also concerned a funding burden for the aviation ombudsman could fall on smaller airports, which are financially constrained.
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