Australians will be able to access cash refunds for cancelled or unreasonably delayed flights under the government's much-anticipated crackdown on the aviation sector. 

The Aviation White Paper was handed down this morning and is hoped to trigger a flight revival after soaring costs and the collapse of two airlines.

The government used the white paper to introduce a new 'Charter of Rights' entitling airline customers to refunds for flights that are disrupted, cancelled or unreasonably delayed, as part of a wider industry shake-up.

Transport Minister Catherine King said Australians were often not being dealt with fairly by airlines.

"The bottom line is if people don't get the service that they are expecting, then customers deserve to get their money back or they deserve to get an equivalent service," Ms King said.

"And that's really not what's been happening when it comes to the consumer space."

The rights charter will be managed by a new oversight body, which will be able to resolve disputes, direct airlines and airports to provide remedies, and report on airline conduct.

The Aviation Industry Ombuds Scheme will also be able to refer allegations of misconduct for investigation and enforcement.

Under that scheme, airlines will have to "show cause" when they report their reasons for a flight's delay or cancellation, as part of regular reporting to the government, with powers for the ombudsperson to request additional information.

Airlines will also be obliged to provide support to people to make alternative travel arrangements.

In December, Qantas warned the government that introducing a compensation scheme would force it to hike air fares and reconsider operating some routes.

Airlines have made headlines repeatedly since the industry's restart after the COVID-19 pandemic.

The major airlines, Qantas and Virgin, have been under scrutiny for their behaviours as an effective aviation duopoly — including claims of squeezing out competitors, Qantas selling tickets to flights that had already been cancelled in their internal systems, and sitting on hundreds of millions of dollars worth of flight credits.

A $21.4 million paycheck for former Qantas boss Alan Joyce raised eyebrows while the national carrier fought findings it illegally sacked hundreds of workers.

There was furore after it was revealed the government had rejected an expansion of Qatar Airways into Australia that could have reduced air fares by at least a third.

And last month, regional airline Rex became the second carrier after Bonza to collapse this year.

Through those moments, the government has repeatedly pointed to its long-awaited Aviation White Paper as a coming solution for the sector.

In statements from Qantas and Virgin, the companies welcome the release of the white paper and said they would review it closely.

As part of its white paper, the government will also establish new minimum standards for airlines to make their services accessible to people with a disability.

The standards will define responsibilities of airlines and airports for an entire person's journey, from information provision to exiting the terminal, 

The government will hope today's announcement can ward off Coalition senator Bridget McKenzie's move to introduce "pay on delay" laws into parliament.

Legislation to establish the aviation ombuds office will be introduced next year, but the government intends to appoint an interim ombudsperson "from the minister's department" in the meantime.

The scheme is expected to be operational by 2026.