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In short:
Unions, industry groups, and airlines have made submissions to a parliamentary inquiry into Airline Passenger Protections.
There are calls to strengthen consumer protections for domestic travellers including adopting models similar to those within the European Union.
What's next?
The federal government is working on an aviation white paper that will consider broad reform of the sector.
Australian plane passengers should be protected by a "bill of rights," including compensation for delays or cancellations unless it is beyond the airline's control, according to a national association of lawyers and academics.
But airlines — including Qantas, Virgin and Air New Zealand — have argued that passenger compensation schemes similar to those in Europe and North America won't improve flight delays and cancellations.
Their statements are among others to a Senate inquiry into the so-called "pay on delay" legislation introduced into federal parliament.
How often are flights being cancelled and delayed?
The inquiry was prompted by increased scrutiny since the pandemic, with consumers highlighting rising ticket prices and frustration over flight delays and cancellations.
Over the festive period in January, almost a third of flights were cancelled or delayed.
There have been signs of improvement since the beginning of the year.
The average long-term performance for on-time arrivals is about 80 per cent, while about 82 per cent for on-time departures.
But the latest figures for May show on-time arrivals and on-time departures were lower than the long-term average. While the rate of cancellation was higher compared to the average.
The Darwin–Perth route performed the worst for on-time arrivals.
The Townsville–Cairns route had the highest on-time arrival and departure times.
Cancellations were highest for the Melbourne–Sydney route, which was second to the Sydney–Melbourne route with about 6 per cent for both.
But when compared with equivalent figures from last year, there have been improvements in both cancellations and delays.
Why is this happening now?
Earlier this year, the Coalition introduced a bill called "pay on delay" which seeks to increase protections for domestic travellers.
The government has not declared whether it will support the bill, with Labor senator and former Transport Workers Union secretary Tony Sheldon describing it as "nothing more than a political stunt".
The legislation would put in place new protections for passengers by obliging airlines to provide refunds or compensation where an airline chooses to cancel or delay flights, where a passenger is denied boarding for a purchased flight, or where luggage is lost or damaged.
Airlines would also be required to ensure passengers "complete their itinerary" where the delay is outside of their control, such as in weather and security events.
The code of conduct would also create some minimum standards of treatment for passengers, including requirements that children under 14 be seated near their parent or guardian.
Calls for stronger consumer protections
In its submission to the inquiry, the Australian Lawyers Alliance said there wasn't a single framework outlining passenger rights.
The national association that includes lawyers and academics said the lack of a framework has led to inconsistent rights for Australian consumers.
"For example, a delayed flight from London or Paris to Sydney qualifies passengers for compensation regardless of the airline. However, in the opposite direction, a delayed flight from Sydney to London or Paris will entitle passengers flying on flights operated by UK or EU airlines with compensation," the submission read.
"Whilst passengers on flights operated by non-UK or non-EU carriers (such as Qantas, Emirates or Qatar), will not fall under a flight delay compensation scheme."
The group backed a "bill of rights" which would include:
- Communication requirements and care standards in the event of delays
- Standardised claims processes
- Legal requirements for passengers to choose between a refund, travel credit or seat on an alternative flight
- Obligation to seat minors close to adults in their party at no additional cost
- Standardised regulation of lost or damaged baggage entitlements
The International Air Transport Association said airlines had a strong incentive to operate on time and "punitive, compensation-based frameworks" failed to take into account factors beyond the carriers' control such as the operations of airports.
Weather was the "biggest contributor" to flight disruptions, according to Airlines for Australia and New Zealand (A4ANZ).
"Over the most recent summer season in Australia, a number of extreme weather events (storms, flooding and cyclones) contributed to the higher-than-average rates of delays and cancellations," it said in its submission.
The Transport Workers Union (TWU) said in its submission for improved service and better safety conditions, an independent regulator for the aviation industry is needed.
"For the travelling public to experience decent service and safety standards, the aviation industry needs regulation through an independent decision-maker to rebalance the scales," the union said in its submission.
"Passengers and aviation workers in Australia will continue to see poor outcomes with proper regulatory oversight, regardless of whether there are measures to compensate for delays or cancellations."
What are some international examples of consumer protection?
Passengers travelling within the EU are entitled to compensation if their flight was cancelled less than 14 days before the departure date.
The EU also said airlines must prove passengers were informed their flights had been cancelled.
Passengers who have experienced delays have the right to a refund, and a return flight depending on the delay and distance of the flight.
In Canada, airlines are liable for up to $2,550 if a passenger's baggage is lost or damaged in transit
There is also compensation for passengers depending on the length of the delay or cancellation.
For large airlines, compensation varies between $434 for delays up to six hours, and up to $1,085 for delays longer than nine hours.
Smaller air carriers are also liable with compensation ranging from $135 to $542 depending on the level of delay.
What do the major airlines in Australia think?
The airlines have criticised suggestions a compensation scheme similar to those in Canada and the EU will be a "silver bullet" for passengers.
A4ANZ, whose members include Qantas, Rex, Air New Zealand and Virgin Australia, highlighted in its submission that consumer complaints have increased in the EU since it introduced its consumer protection scheme.
"In Canada, another jurisdiction often held up as an example for Australia to follow, consumer protection regulations introduced in 2019 have resulted in a large – and growing – backlog of unresolved consumer compensation complaints (71,000 as of April 2024)," the submission read.
In its submission, Virgin Australia said existing consumer laws were "fit for purpose".
"It provides a comprehensive framework for consumers including guaranteed rights and appropriate compensation," its submission read.
"Airlines already add to those rights through their own compensation policies.
"Automatic, blunt penalty regimes like the European Union's passenger compensation scheme risk leading to increased fares, but not necessarily improved customer outcomes or operational performance."