Less than half of Australians who seek a refund for a cancelled flight receive it within a month while one-fifth of those seeking a refund wait more than six months, a poll has claimed, as the government considers a compensation scheme and a passenger bill of rights.
The consumer advocate Choice also claimed, in a survey of about 9,000 Australians, that two in five respondents said they had a flight cancelled or delayed in the 12 months between October 2022 and this year.
Of those who had a flight cancelled, 63% claimed no reason was provided for the cancellation. Pursuing a refund was also difficult, respondents claimed, with just 47% reporting they received their money back within a month of asking for it. But 20% had to wait more than six months for a refund, they said.
A vast majority – 85% of respondents – also reported they were not offered accommodation or meal vouchers from an airline when their flight was delayed.
Bea Sherwood, Choice’s senior campaigns and policy adviser, said Australians were having to “fight tooth and nail with the airlines”.
“Our survey found people are feeling frustrated as flights continue to be delayed and cancelled, often without reason or sufficient warning,” Sherwood said.
While airlines such as Qantas offer refunds and flight credits, and sometimes accommodation, to passengers whose flights are cancelled, advocates say compensation laws would act as a greater cost disincentive against cancelling flights and set out hard timeframes to pay affected customers.
The survey results were revealed as submissions to the Albanese government’s aviation green paper were released, before it sets out its long-term aviation policy in its white paper due in the middle of next year.
Choice, in its submission with the Consumers’ Federation of Australia, is calling for a raft of new airline-specific customer protection including the establishment of an independent travel and tourism industry ombudsman scheme; forcing airlines to pay passengers compensation for delayed or cancelled flights in a scheme similar to those in place in the European Union; clearer rights for refunds; and minimum requirements for travel credits.
Calls for a compensation scheme have been mounting amid growing frustration at airlines during the post-pandemic travel boom.
The Australian Competition and Consumer Commission, among other groups, has raised the idea of a compensation scheme in Australia, pointing to models in place overseas. In Europe, passengers whose flights arrive at their final destination with a delay of more than three hours are entitled to between €250 and €600 each, depending on the distance of the trip.
Longer delays mean passengers can opt to be fully refunded, repaid to them within seven days.
If a delay means a passenger misses a connecting flight on the same reservation, the airline must also pay compensation. The compensation rules do not apply in situations where extraordinary circumstances, such as poor weather, caused the delays.
Qantas, in its submission to the green paper, warned the government that introducing a mandatory compensation scheme for delayed and cancelled flights would be a “backwards step” and inflate the costs of air fares instead of reducing flight disruption. It noted “the inflationary impact on fares for what will effectively be mandatory travel insurance for all passengers”.
The Australian Lawyers Alliance used its submission to call for a passenger bill of rights, part of which should include a compensation scheme. The ALA called for a bill of rights to include communication requirements for airlines to inform passengers about delays and cancellations in a timely manner, both before departure and while onboard.
A bill of rights, the ALA said, should also include rules for refunding and rebooking passengers; care standards during delays, such as free food, drinks, wifi and accommodation and access to bathrooms; and proper heating and cooling of the aircraft when stuck on the tarmac.
Other submissions call for greater organisation towards developing local sustainable aviation fuel capability – a shortcoming the industry warns will make emissions reductions targets unachievable and could lead to foreign airlines reducing the frequency of their flights to Australia.
Elsewhere, Sydney airport’s submission repeated its call for the government to implement the recommendations of the Harris review, which in 2021 proposed reforming the legislation that dictates the airport’s strict capacity and other rules including those to minimise noise for nearby communities.
