AIRLINES: Compensation not part of Airline Passenger Charter of rights

Since we are currently in peak air travel season, the dropping of this draft Airline Passenger Charter is timely. It’s also peak season for delays and cancellations, which disastrously impacts travel plans.

In a move that surprises absolutely no one, the Australian Government has decided not to follow the European Union’. The EU has led consumer rights by making airlines compensate passengers for flight delays or cancellations. Instead, they’ve chosen to keep the airline industry happy, particularly Qantas.

No Cash, No Worries?

The European Union has set the standard by ensuring airlines pay up when they mess up. The Australian Government has not. It has omitted this compensation detail from its draft aviation customer rights charter. Airlines argue that such compensation would force them to preempt costs and potentially hike up airfares. Because, of course, it’s always about the bottom line.

Compensation? What Compensation?

The government’s draft Airline Passenger Charter is open for public consultation until the end of February 2025. It manages to skip the whole compensation thing.

The draft Airline Passenger Charter proposes a series of broad legal entitlements for passengers. If not adhered to, airlines will face penalties.

It proposes that airline customers have a right to ‘prompt and fair remedies and support during and after cancellations, delays and disruptions’. So, for example, if a flight was delayed for 3+ hours, assuming the airline controlled the delay, customers would receive rebooking assistance, including with an alternate carrier, or cancel, or full refund, plus refunds on accommodation, transport, and meals associated with the delay.

This is far less than outlined in the EU scheme. In Europe, if a flight is delayed more than three hours then affected passengers are entitled to between €250 (A$485) and €600 (A$1,165), calibrated to the kilometres of the trip. Longer delays could warrant a full refund in seven days.

Under the proposed Airline Passenger Charter, there would be no cash compensation—just a pat on the back and a ‘better luck next time.’ The charter essentially protects the status quo.

Recent personal experience

I recently travelled with Virgin Australia on a flight to Byron Bay from Sydney. The flight was delayed by 4+ hours. Scheduled to leave at 14:25, it was delayed until 18:45. The reason given was Air Traffic Control issues in Ballina, which was further explained by saying the ‘radar was down’—so it was not officially under the airline’s control. There was no compensation other than AU$16 worth of meal vouchers per passenger. That covered half my hamburger.

Although others complained of a lack of information, I thought the communication was fine. Ok, they could have made a more public announcement that vouchers were now available, but I suspect that would have led to a scramble at the counter. Instead, word-of-mouth acted to control the queue at the counter.

Dignity, Respect, and Other Nice Words

The draft Airline Passenger Charter also insists passengers be treated with dignity and respect, but not actual compensation for their inconvenience. Airlines are also expected to provide timely information and improve customer service, which, judging by Qantas’ 97-day average resolution time in 2023, might be a bit of a stretch.

Transport Minister Catherine King assures us that legislation will be introduced next year, with a formal ombuds scheme by 2026. By then, maybe we’ll all just be flying on dreams and good intentions.

2PAXfly Takeout

I think the Airline Passenger Charter is a bit of a squib. It pays lip service to consumer rights but holds the airlines to essentially the current standard, stopping well short of compensation. I have to say, I find it disappointing, regressive, and not in the spirit of championing air travellers’ rights.

This is your chance to contribute to airline policy making, if you are an Australian. So, get off your butt, and give the government your feedback on the proposed charter. Far be it for me to suggest that you criticise the proposed charter for not embodying EU type consumer protections and compensation.

You can find the draft Airline Passenger Charter here. It has links to the Charter, Aviation White Paper and Aviation Industry Ombuds Scheme. The link to participate with feedback can be found if you scroll down the page.