Australian travellers are likely to continue missing out on compensation rights given to their European and North American counterparts, despite the federal government’s release of a new draft Aviation Customer Rights Charter. Critics argue that the new charter, while offering some improvements, fails to address compensation for flight delays and cancellations—a key issue in many other countries.
In the European Union, passengers are entitled to compensation ranging from €250 to €600 (about $420 to $1,000) if their flight is delayed or cancelled by more than three hours. Similarly, in Canada, passengers are entitled to between $CAD125 and $CAD1,000 (about $140 to $1,120) depending on the airline and delay duration.
The new Australian draft, however, offers no such compensation framework. While it affirms that customers have the right to “prompt and fair remedies and support during and after cancellations, delays, and disruptions,” there is no mention of financial compensation.
Rosie Thomas, from the consumer advocacy group Choice, expressed concern that the draft charter did not adequately address passenger compensation rights. “Introducing a European-style compensation scheme is one way to do this, but even without such a system in Australia, consumers deserve clear guidance about their compensation rights under existing consumer guarantees,” Thomas said.
Independent MP Monique Ryan also criticised the draft for letting airlines “off the hook” and failing to incentivize better service. “Cash compensation for delayed or cancelled flights is a strong incentive for airlines to provide better service. The government has squibbed on these in its draft passenger charter,” she said.
However, there were positive responses to some elements of the draft. The new charter proposes a requirement for airlines to provide refunds for cancelled flights within 14 days and in the same payment format originally used by customers. This provision aims to put an end to the common practice of offering flight credits, which became widespread during the COVID-19 travel disruptions.
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