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Airlines’ consumer overhaul ‘a big missed opportunity’ says Flight Centre boss

Australians whose flights are delayed or cancelled may not receive as much compensation as overseas travellers, lawyers say.

Aug 27, 2024, updated Aug 27, 2024
Flight Centre co-founder and managing director Graham "Skroo'' Turner

Flight Centre co-founder and managing director Graham "Skroo'' Turner

Improved consumer protections and competition lie at the heart of Australia’s aviation overhaul, with the federal government vowing to establish a watchdog that will force airlines to pay cash compensation to inconvenienced travellers and set guidelines for customer treatment.

But, according to Australian Lawyers Alliance spokeswoman Victoria Roy, these suggestions still fall short of international standards.

The European Union, Canada and other jurisdictions all have simple flight delay compensation schemes that require airlines to refund or reorganise travel arrangements, while offering extra compensation for inconvenience or distress.

There are concerns that the Australian government’s vision may not require carriers to pay passengers more than their travel expenses and airfare refunds.

Ms Roy also noted travellers who have sustained a psychiatric injury or experienced sexual assault have also been left without clear rights to compensation.

“(The proposals) are an improvement on the current situation but, overall, the white paper is disappointing for consumers and a missed opportunity,” Ms Roy said.

“Passengers deserve a clear right to compensation … (they) need certainty and better protections now.”

The efforts to make the industry fairer, more accessible and competitive have been welcomed by Flight Centre chief executive Graham Turner, but he said the potential ramifications on airlines must be carefully considered.

“It’s important to note that there are a range of reasons that flights may be delayed or cancelled, and not all of them are the fault of the airline,” he said.

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“We’re already operating in an environment where there’s essentially a duopoly that is creating a barrier to other operators and we’ve seen recent casualties such as Bonza and Rex as a result.”

The Aviation White Paper outlines ways to improve the sustainability, competitiveness, efficiency and safety of the aviation sector.

Though it is designed to guide the sector through to 2050, RMIT Aviation Academy director Lea Vesic says many of its suggestions provide short-term solutions to systemic issues like workplace shortages.

“The federal government’s Aviation White Paper seems to reactively address systemic problems in the aviation industry, rather than presenting a robust vision for its future,” she said.

“Although attention has been rightly focused on market competition and consumer rights, there is much more to achieve in reforming the industry.”

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