Australian airlines resist calls for more passenger compensation

BTN News
Monday, 15 May 2023

As the USA mulls delayed and cancelled flight compensation similar to rules in Europe, Australian airlines indicate they'll fight the measure, claiming fares would rise as a consequence.

As we recently reported, the Australian Competition and Consumer Commission (ACCC), consumer advocate Choice and the Australian Lawyers Alliance all separately have raised the idea of a compensation scheme in Australia.

The EU scheme pays compensation for 'avoidable' delays that can be blamed on actions by airlines, and not causes outside their control, such as weather.

Major Australian airlines Qantas, Jetstar, Virgin Australia, Rex and Bonza already are pushing back on the suggestions.

Rex deputy chairman John Sharp said: "If you’re not careful you can drive up the cost of air travel and penalise consumers", because airlines add the cost of potential compensation to their standard ticket prices.

Bonza chief executive Tim Jordan said the new carrier was more focused on current airport slot rules where airlines can lose their rights to landing and takeoff slots if they fail to operate a majority of flights.

Qantas said Australia already has "strong consumer laws and a detailed framework for consumer protection".

Australian airlines resist calls for more passenger compensation

BTN News
Monday, 15 May 2023

As the USA mulls delayed and cancelled flight compensation similar to rules in Europe, Australian airlines indicate they'll fight the measure, claiming fares would rise as a consequence.

As we recently reported, the Australian Competition and Consumer Commission (ACCC), consumer advocate Choice and the Australian Lawyers Alliance all separately have raised the idea of a compensation scheme in Australia.

The EU scheme pays compensation for 'avoidable' delays that can be blamed on actions by airlines, and not causes outside their control, such as weather.

Major Australian airlines Qantas, Jetstar, Virgin Australia, Rex and Bonza already are pushing back on the suggestions.

Rex deputy chairman John Sharp said: "If you’re not careful you can drive up the cost of air travel and penalise consumers", because airlines add the cost of potential compensation to their standard ticket prices.

Bonza chief executive Tim Jordan said the new carrier was more focused on current airport slot rules where airlines can lose their rights to landing and takeoff slots if they fail to operate a majority of flights.

Qantas said Australia already has "strong consumer laws and a detailed framework for consumer protection".