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The Federal Government has put its new aviation consumer protection legislation before Parliament.
Flagged in 2024’s Aviation White Paper, the package of bills introduces what Transport Minister Catherine King calls “a series of reforms to deliver a better deal for aviation consumers”, including an aviation ombudsperson and an Aviation Consumer Protection Authority.
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“The war in the Middle East has highlighted how travellers can experience disruption and uncertainty domestically, and how important it is for them to have increased protections when they fly and a clear understanding of what they are entitled to,” said Minister King.
“This bill will legislate new reforms that reshape the way consumers interact with the aviation industry, providing them with the protections they need when things go wrong, while still supporting a competitive and affordable industry.”
The major provisions of the legislation include the independent Aviation Consumer Ombudsperson, who will work with airlines, airports and consumers to resolve complaints, as well as an independent Aircraft Noise Ombudsperson (ANO) who will review the handling of noise complaints.
“The legislation also paves the way for the Aviation Consumer Protections Charter, an Australian first, which will set minimum standards expected from airline and airport services for aviation consumers,” the Minister said.
“An Aviation Consumer Protection Authority will also be legislated, inside the Department of Infrastructure, that will enforce and ensure compliance with those standards.”
According to the Minister, the independent bodies will replace avenues such as the industry-funded Airline Customer Advocate (ACA), widely considered ineffectual in addressing consumer complaints and refund requests.
“Consumers have relied on airlines handling escalated complaints themselves through voluntary industry arrangements and have frequently been left disappointed with the outcomes,” she said.
“While airline performance, including on-time performance has improved since the COVID-19 pandemic, there is still a broader need to better protect aviation consumers.
“We’ve worked with the public, with industry, and with experts to ensure we are delivering meaningful protections for passengers while maintaining a competitive and sustainable aviation sector.”
The bills notably exclude any EU-style “pay-on-delay” compensation, with the Transport Minister telling the ABC last year that the government was not ruling out such a scheme entirely, but that it was not currently on the agenda.
“In a market that is pretty small, we had to weigh up, how do we – in the moment when people are experiencing a delay, a frustration about lost baggage, what’s happened to them – how do we get remedies to people quickly, versus what happens with schemes where the costs potentially, if they’re large, can be passed on to the travelling public,” she said.
“Obviously, in Europe, there is a compensation scheme that is, of course, defrayed across millions of passengers and hundreds of airlines.
“We’ve got a much smaller market, so we think we’ve got the balance right here, making sure people get immediate remedies to rectify the situation that they’re in, rather than the European scheme.”
A draft of the proposed legislation was in January criticised by the airline industry, which labelled it “unworkable” and “complex” and said it could increase airfares.
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