Flight cancellation chaos sparks $40m bid to fix airline complaints system

Western Australian mum Rohan Young was disappointed to find her flight to Sydney was cancelled via a news article. (Supplied) The federal government has announced nearly $40 million to fund an overhaul of aviation consumer rights. These include a new watchdog and complaints system that could lead to compensation for disrupted passengers. The laws, first outlined in 2024, could take effect within months, as airlines warn the changes could drive up airfares. Link copiedShareShare articleRohan Young was scrolling through the news when she discovered her family's flights to Sydney, for her aunt's 80th birthday celebrations, could be in doubt. The Western Australian mum said she had just read Jetstar had axed the Busselton to Sydney route from June, a key gateway to the Margaret River wine region, due to low passenger demand and high fuel costs. "I quickly checked my emails but there was nothing from Jetstar," Ms Young said. "It was only when I logged into my account that I saw our flight had been cancelled." She said she spent hours on the phone and in online customer chats with the airline, trying to confirm the cancellation and find alternative flights to make the July celebration. Rohan Young (middle left) and her family were flying to Sydney for her aunt's 80th birthday. (Supplied) The family eventually rescheduled their flights on different dates to depart from Perth — a three-hour drive from home — leaving them with less time in Sydney for the celebration. "There does not seem to be anyone who you can raise a complaint with when these things happen," she said. "The impact on people's lives when travel is disrupted can be profound and often you only get a perfunctory email from the airline provider with little recourse for the traveller." The federal government has now moved to fund an overhaul of passenger rights unveiling a nearly $40 million package in Tuesday's budget. It will establish an Aviation Consumer Protection Authority to enforce the government's aviation consumer protections bill, which is now before a Senate committee, along with an independent ombuds scheme. We want to know what issues matter to you in the federal budget. Have your say. Under the proposed laws, first outlined in the government's Aviation White Paper in 2024, airlines could be forced to refund passengers, cover costs like food and accommodation during disruptions and provide compensation. Currently, Australia has no guaranteed compensation scheme for disrupted flights, unlike the European Union, where passengers are automatically entitled to about $400 for delays of three hours or more, or last-minute cancellations. Passengers in the EU are automatically entitled to $400 for delays of three hours or more, or last-minute cancellations. (ABC News: Lucas Hill) Consumer group Choice welcomed the reforms, saying Australians have "long campaigned for stronger travel rights". He said the COVID-19 pandemic exposed major weaknesses in aviation consumer protections, with passengers often left "given the run-around" when flights were disrupted. But airlines say the proposed laws will force up the price of flights. In its submission to the senate committee examining the new laws, Virgin Australia said the legislation unfairly extended liability into areas it did not control, including airport infrastructure, baggage systems, security screening and travel agents. Qantas will cut domestic flights due to higher fuel costs and the uncertainty of the Middle East war, as it flags as much as $800 million in extra fuel costs. "A regulatory framework that does not align responsibility with control is unlikely to improve consumer outcomes," the airline said. Qantas said there was a "real risk" the framework would push up fares, reduce route viability and undermine low-cost carrier models. "It is vitally important that any further regulation is proportionate to the issue," Qantas said. Airlines say the changes could lead to increased airfares or reduced route availability. (ABC News: Billy Cooper) Aviation expert Justin Wastnage, from the Griffith Institute for Tourism, said European consumer protection measures had seen a drop in the number of flights cancelled, since legislation was introduced two decades ago. "Canada, the United States and Brazil have also introduced this system, and the airlines have fought it every step of the way," Mr Wastnage said. "Qantas and Virgin have known this is coming for some time, and I'd suggest they have already factored in extra costs for when the laws come into effect."

Flight cancellation chaos sparks $40m bid to fix airline complaints system

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