Airlines in Australia may yet be forced to compensate passengers for bumping them to other services because of overbooking, delaying or cancelling their flights, under the charter of aviation rights proposed by the Albanese government.
The transport minister, Catherine King, told Guardian Australia that, despite the aviation white paper not endorsing a standalone compensation provision, the government aims to have legally enforceable penalties included in the charter. It also wants powers granted to the proposed new aviation ombudsman to deal with how airlines treat passengers.
“That’s exactly what we’re trying to do,” King said in an interview for the Australian Politics podcast. It remains unclear whether airlines would be required to provide compensation automatically – something airlines resist – or if passengers would have to claim it back later.
She said consultations were under way on how legal enforcement of a penalties regime could work.
“That might be something that the ombudsman actually puts in place, that ‘these are circumstances under which an airline must do the following things’. And so that will be part of the ombudsman scheme’s right – to actually set those guidelines down. So that may well be something that becomes part of the charter of rights.”
The government has faced some criticism since unveiling the aviation white paper in late August that it did not include a compensation scheme similar to those operating in Europe and elsewhere.
In those jurisdictions, passengers facing delays, cancellations or who are refused boarding due to overbooking can receive financial or other recompense, including meal vouchers and sometimes accommodation.
Under the European Air Passengers Rights regulation, introduced in 2004, passengers on flights departing from European member countries may be able to claim between €200 and €650, depending on the flight distance, for flights that are delayed more than three hours or cancelled within 14 days of departure, and for being denied a reserved seat because the flight has been overbooked.
The compensation is only offered to passengers who booked in advance, paid for their tickets and showed up to board on time. Seats bought using frequent flyer points do not qualify.
In some circumstances, compensation is also available to passengers on inbound flights to Europe.
British law provides for similar amounts of compensation. US law offers less passenger protection for delayed and cancelled flights but compensation of up to US$1,550 in some circumstances for outbound passengers bumped off overbooked flights.
Australia has no such provision, with airlines not required by law to compensate passengers financially or to provide meals or hotel rooms when they are forced to change flights or face delays.
But King said the new charter could contain legally enforceable penalties for airlines that did not deliver what passengers had purchased. She defended taking time to consult before establishing those provisions.
“Because, you know, there’s a range of different views about that, and we also don’t want to see it then risk-priced into airline tickets and increase the price of the ticket,” she said.
“That’s the issue.”
The aviation white paper also included provisions to require airlines to disclose the reasons for cancelled or delayed flights – a move in response to passengers’ frustrations and suspicions that some flights are cancelled for reasons of low bookings and profitability.
“They’ll have to say that that is the reason and be able to be accountable for that,” King said.
She said some ongoing flight delays and cancellations since the Covid-19 pandemic were due to staffing shortages and particularly a lack of air traffic controllers, of whom she said there was a worldwide shortage.
“The previous government took a decision to allow air traffic controllers to take early retirement during Covid,” she said. “… So anyone listening who thinks that they’d like a career for life – air traffic control. I can guarantee that you will get picked up very quickly.”
