The New Aviation Industry Ombudsman: Here's What We Know

Airlines will soon be required to pay compensation for delayed flights.

On Monday 26 August 2024, the Federal Government released their highly anticipated Aviation White Paper outlining the path forward for Australia’s aviation sector. The White Paper includes 56 policies setting the direction for the industry, including the establishment of an independent Aviation Industry Ombuds Scheme and an Aviation Customer Rights Charter.

These initiatives will set out clear guidelines for how airlines must handle issues such as flight cancellations, delays and compensation. Here’s what we know so far.

What is the Aviation Industry Ombuds Scheme?

Replacing the Airline Customer Advocate, the new Aviation Industry Ombuds Scheme will cover both domestic and international airlines operating in Australia, as well as airports. It aims to ensure greater accountability from airlines, especially concerning flight delays, cancellations, refunds and compensation.

What will the Aviation Industry Ombudsperson do?

The Aviation Industry Ombudsperson will have the power to oversee and resolve customer complaints related to airlines and airports, potentially forcing airlines to compensate customers for delayed or cancelled flights. They will ensure that refunds are processed promptly where applicable.

In addition to handling complaints, the ombudsperson will publish reports on airline and airport conduct and make policy recommendations to the Australian Government to further protect consumer rights.

Aerial shot of planes at an airport — The Aviation Industry Ombuds Scheme will ensure greater airline accountability. (Image: Skyler Smith)

Why is the Aviation Industry Ombudsperson being introduced?

The Aviation Industry Ombudsperson is being introduced in response to growing frustration from Australian travellers regarding poor customer service, lengthy delays and difficulties obtaining refunds or compensation from airlines. It comes after increased scrutiny of airline practices and a push for stronger consumer protections.

What is the Aviation Customer Rights Charter?

The Aviation Customer Rights Charter, developed alongside the ombudsman, will offer a clear and accessible outline of passengers’ entitlements. This includes guidelines on when passengers are entitled to cash refunds, compensation for delays and cancellations, as well as outlining airlines’ obligations in other areas, like lost luggage and customer service standards they must meet. The goal is to create consistent and enforceable standards.

Plane on tarmac at sunset — The Aviation Customer Rights Charter will offer a clear and accessible outline of passengers’ entitlements. (Image: Rocker Sta)

Will it have an impact on domestic flight prices?

The immediate impact on domestic flight prices is uncertain, though airlines may pass the cost of compliance onto passengers. However, increased accountability could lead to a more reliable aviation industry, ultimately benefitting passengers by reducing the indirect costs of travel disruptions.

Will it improve airline performance?

Yes, the introduction of the Aviation Industry Ombudsperson is expected to improve airline performance by encouraging compliance with stricter service standards and increasing transparency in how airlines handle delays and cancellations.

Plane wing above the clouds — Domestic flight prices may increase. (Image: Tom Barrett)

How can passengers claim compensation?

Passengers will be able to lodge complaints through a streamlined process overseen by the ombudsperson. They will mediate disputes and enforce compensation when applicable. Further details on the claims process will be made available once the system is fully operational.

When will it be implemented?

The Aviation Industry Ombuds Scheme will be set up to resolve disputes between airlines and passengers by 2026.

Plane engine as aircraft flies above clouds — There has been growing frustration from Australian travellers regarding the aviation industry. (Image: Emiel Molenaa)

What does this mean for airlines?

Airlines will face stricter customer service standards and could be required to compensate passengers for cancellations, delays or other service failures. They will also be required to “show cause" for why flights are delayed or cancelled. Additionally, the Government will review its travel purchasing policies to ensure fairness and transparency in airline booking practices.

“We will also increase the transparency of airline performance, with more data on performance and competition to be published by the Bureau of Infrastructure and Transport Research Economics (BITRE)," federal transport minister Catherine King said.

What are the airlines saying?

“We welcome the release of the Aviation White Paper and the opportunities it presents to improve regulatory and policy settings, ensuring all Australians continue to benefit from a competitive and sustainable aviation industry in the years ahead," a Virgin Australia spokesperson told Australian Traveller.

“We are closely reviewing the policy position on various topics and we look forward to working collaboratively with the Government and other industry participants during this process."

How does it work in the rest of the world?

In the European Union, aviation ombudsmen and strong consumer protection laws, such as the EU’s Regulation 261/2004, are already in place. This regulation guarantees compensation for long delays and cancellations unless caused by extraordinary circumstances.

In the United States, there is no standalone aviation ombudsman. Instead, airline disputes are primarily handled through federal agencies like the Department of Transportation (DOT), which regulates airline consumer protection, with rules on compensation for overbooking, mishandled baggage and tarmac delays. However, compensation for flight delays or cancellations is not as robust as in Europe, with airlines mostly determining their own policies.

Person looking at flight schedule in airport — Airlines will be required to “show cause" for why flights are delayed or cancelled. (Image: Erik Odiin)

Discover the magic of a Sydney staycation in summer at The Fullerton Hotel Sydney.

Sydney City is magical in summer. Warm summer evenings beg to be spent sipping cool cocktails at one of many al fresco and rooftop bars. Ferries and buses are ready to transport travellers to the best nearby beaches for salty days on the sand. National parks and rainforests are waiting to be explored. And the city’s events calendar is packed, from live music to cultural attractions. All elements that call for a Sydney staycation.

Discover where to eat, stay and play for the perfect local getaway.

Where to stay

The Fullerton Hotel Sydney

Amid the bustle of the perfect Sydney staycation, one needs a place to escape to and recharge. Enter, The Fullerton Hotel Sydney . The hotel is an icon in its own right – nestled inside the 151-year-old building that was originally Sydney’s General Post Office, its heritage-listed sandstone walls and Victorian renaissance grandeur have been carefully preserved – providing a rare chance to sleep within Sydney’s history.

Despite its fascinating history, the hotel isn’t short on modern, luxurious comforts. Rooms and suites are available in both the modern high-rise with gorgeous views over the clock tower and lively city below, or inside the historical post office building itself.

the Fullerton Hotel Sydney Heritage Long Suite bathroom — Heritage rooms maintain their old-world style.

Either way, guests can enjoy sophisticated touches, including a deluxe bed and pillow menu, Harman Kardon Bluetooth speakers, a digital concierge, a Vittoria coffee machine and amenities from the Balmain bathroom collection.

The team at this five-star hotel provides excellence and a quality experience for all their guests, while amenities like a gym help with a well-rounded stay. For a peaceful moment with sweeping city views, enter The Fullerton Club Lounge on level 28. This private haven for dining and relaxation is available to any guests staying on the hotel’s club floors and suites.

Add to this a central location in the CBD’s Martin Place, with easy access to Sydney’s top attractions, and convenience meets style.

Where to drink & dine

1. The Bar

the Fullerton Hotel afternoon tea at the bar — Indulge in the Fullerton Signature Afternoon Tea.

Inside The Fullerton Hotel Sydney’s lobby, The Bar does more than sling a few delicious cocktails (although it certainly does that well). Its brown leather chairs and glass ceiling create the perfect, almost al fresco, setting for the Fullerton Signature Afternoon Tea .

Served daily from 12 to 4 pm, the afternoon tea is a nod to the cherished social occasion it once was during the Victorian Renaissance era. People like to dress up for this afternoon tea, and if you’re lucky, a pianist often sits down at the on-site grand piano, just adding to the elegance.

The afternoon tea is served high tea style, offering reimagined British flavours of the Victorian Renaissance era with a unique blend of Australia’s culinary heritage. A sweet layer offers delights like a Malted Milk Envelope (a milk mousse layered between two biscuits), Bakewell Pudding (a super tasty egg-based pudding), and Apple Charlotte.

On the savoury layer, expect finger sandwiches with fillings like cucumber, egg and smoked salmon. While classic pinwheels and stuffed eggs almost make the menu. And, of course, all finished off with traditional scones served with cream and mixed berry jam.

Can’t fit in a whole afternoon tea? Be sure to at least order a slice of the 32-layered chocolate cake, a decadent mix of dark chocolate crémeux, fresh whipped cream, and Valrhona Azélia chocolate sauce. ⁣

2. The Place

the Fullerton Hotel the place dining — Dine in the stunning GPO atrium.

On level one of The Fullerton Hotel Sydney lives The Place – the hotel’s restaurant, in an atrium overlooking the former GPO. Here, dine on Modern Australian cuisine – think fresh, local seafood and a Riverina steak sandwich – along with a touch of Singaporean signature dishes, like Thai-style green curry or chicken satay. All in the shadow of the GPO clock tower, enjoying the GPO atrium’s natural light.

3. Local gelato

Couple enjoying ice-creams at First Fleet Park, The Rocks — Enjoy ice cream in the sunshine. (Image: Destination NSW)

What is summer without ice cream and/or gelato? Luckily, there are plenty of options just a short walk from The Fullerton Hotel Sydney, whether you’re craving a midday pick-me-up or an after-sun treat.

What to do/see

1. GPO Heritage Tour

the Fullerton Hotel Sydney lobby — Be awed by the building’s history.

Want to know more about the building you’re staying in? The Fullerton Hotel Sydney offers a complimentary 90-minute GPO Heritage Tour. Follow a knowledgeable tour guide to discover the stories, tales and legends of the former Sydney General Post Office building.

From the iconic clock tower (completed in 1891) to the black-and-white tiled staircase at 1 Martin Place, which was once the main entrance to the GPO and today serves as a prominent feature of the building to the 24 stone faces (mascarons) on the Martin Place side of the building. Part of the 1880s-era facade (designed by architect James Barnet), each represents different states, countries and continents.

2. Circular Quay

aerial of circular quay sydney — Catch a ferry from Circular Quay. (Image: Destination NSW)

An easy walk or light rail ride away from The Fullerton Hotel Sydney, lies the bustling Circular Quay. Here, you can sit for a drink and nibbles at the Opera Bar, or head into the iconic house itself for a show. It’s also a major ferry port, becoming your gateway to Sydney’s beaches, Luna Park and even Sydney Zoo.

3. Royal Botanic Gardens

view of circular quay from Sydney's Royal Botanic Garden — Wander through Sydney’s Royal Botanic Garden. (Image: Destination NSW)

Just beyond Circular Quay, discover Sydney’s Royal Botanic Garden. Wander through this 30-hectare, heritage-listed, botanical garden – exploring its differing sections, from Australian native botanicals to garden beds of vibrant flowers to towering groves of international trees.

It’s also the perfect place for a picnic, so pick up supplies before you come and enjoy a spot on the grassy meadow looking out into the harbour.

4. Theatre Royal

Just a one-minute walk from The Fullerton Hotel Sydney, take in a show at Theatre Royal. Built in 1976, the theatre has been offering a broad range of entertainment since the 1990s. Expect a show roster that ranges from the classics (like Cats) to the modern) like Pretty Woman: The Musical).

Start planning a summer stay in Sydney worth remembering at fullertonhotels.com/fullerton-hotel-sydney.

Flight delays and refunds? Australia’s new aviation watchdog will help