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Federal election could risk aviation changes

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The news: Travellers hit by last-minute cancellations are not guaranteed a refund, with key details of Labor’s response to the issues in the aviation sector possibly delayed until after the election.

The context: Transport Minister Catherine King unveiled the government’s long-awaited white paper on the sector on Monday, declaring its guiding principle will be that “customers [should] get what they pay for”. The aviation sector has been wracked with problems since COVID-19, including a shortage of air traffic controllers, rising delays and cancellations, and ticket prices spiking.

Under King’s changes, a new ombudsperson will begin drafting a customer Charter of Rights designed to thrash out protections for travellers under Australia’s first aviation complaints mechanism. Whether or not a customer will be guaranteed a refund, how they will launch complaints, and penalties for an airliner in breach will be worked out in consultation which began on Monday.

But with legislation also set to be introduced in 2025, there is no guarantee it will become law before the next federal election, which could be held this year.

There will also be a stricter approach to Sydney Airport’s management of outgoing flights, which the white paper found was contributing to high levels of cancellations. It warned there was currently an incentive for airliners to book runway slots without intending to use them, often to prevent competitors taking them.

As part of its efforts to keep regional airliner Rex afloat during administration, King confirmed the government would ease requirements for its slot holdings until March 2026.

However, there are questions about whether the company managing slots, which is part owned by Qantas and Virgin, creates a conflict of interest. Labor has gone to a competitive tender process for a new manager, but stopped short of guaranteeing that the new operator would have no relationship with a major airliner.

The Department of Finance will also review Commonwealth travel purchasing policies, with the federal government and public servants major airline customers.

An interim ombudsperson will be appointed in the coming days, with King saying they would be able to take complaints in the new year.

Critics will argue the white paper does little to address an aviation sector duopoly, with Qantas — including its subsidiary Jetstar — and Virgin controlling over 90% of the domestic industry. King said the government was attempting to attract “as much competition as we possibly can” in a market where high operation costs made that “challenging”.

Last year, King came under fire after blocking Qatar Airways from almost doubling its flights to Australia, a move which threatened Qantas but would have made international travel cheaper. At the time, King insisted the move was “in the national interest”, though said on Monday she would consider all plans put before her.

In the European Union, customers are entitled to a full refund or an alternative flight if their flight is cancelled, and a return to their airport of departure if they’ve already boarded a connecting flight. If the disruption was in the airline’s control — not an “extraordinary circumstance” — customers are entitled to further compensation.

Earlier this year, the Biden administration implemented similar laws requiring automatic refunds to customers when flights are cancelled or significantly delayed.

What they said: “What we all want to see is that customers get what they pay for. If you bought a ticket [and] the flight doesn't go, or the flight doesn't go when you expect it to go, you should expect that that's the service that is provided,” King told reporters in Canberra.

The sources: Aviation white paper, Catherine King press conference


By Finn McHugh