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

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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)
Emily Murphy
Emily Murphy is Australian Traveller's Email & Social Editor, and in her time at the company she has been instrumental in shaping its social media and email presence, and crafting compelling narratives that inspire others to explore Australia's vast landscapes. Her previous role was a journalist at Prime Creative Media and before that she was freelancing in publishing, content creation and digital marketing. When she's not creating scroll-stopping travel content, Em is a devoted 'bun mum' and enjoys spending her spare time by the sea, reading, binge-watching a good TV show and exploring Sydney's vibrant dining scene. Next on her Aussie travel wish list? Tasmania and The Kimberley.
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Embrace that Sunday feeling at Hamilton Island‘s newest resort

This new, family-friendly Hamilton Island resort embraces life in the slow lane.

White sand beaches, gentle waves and getting on ‘island time’ have always made Hamilton Island the first spot that comes to mind when thinking of Queensland’s Whitsundays. Always a place to recharge and relax, modern wellness travel here means so much more than a spa treatment or green juice. And a new kind of tropical island stay has now arrived on Hamilton Island.

pool at The Sundays Hamilton Island
Learn to slow down and rejuvinate. (Image: Kara Rosenlund)

The Sundays reimagines laid-back luxury, combining boutique, beachfront accommodation with an encouragement to slow down and appreciate life’s simple pleasures so every day feels like Sunday.

Laid-back luxury

The Sundays is nestled into the picturesque gardens on the northern end of Catseye Beach. Despite a feeling of being away from it all, the resort is a conveniently short walk from Hamilton Island’s main resort centre and restaurants, so guests can have the best of both worlds.

This new boutique stay is all about savouring the now. From complimentary sunrise yoga to moonlight movies for kids and a daily sundae ritual by the beachside pool, it makes a compelling case for doing less, better.

Even the architecture is designed to harmonise with the surrounding tropical landscape, pairing soft curves with a grounded coastal style that shows off the panoramic Coral Sea views and adds to the hotel’s calm aesthetic.

Plus, with direct flights to Hamilton Island from Sydney, Melbourne and Brisbane in under two and a half hours, as well as complimentary hotel transfers from the airport or marina, getting here is as easy as the vacation itself.

balcony view from room at The Sundays
Enjoy fantastic views from your balcony or terrace. (Image: Sharyn Cairns)

Perfectly designed rooms with amazing views

Every small detail has been considered in the creation of the 59 guest rooms and suites, from in-room amenities by LEIF to walls adorned with custom artworks by First Nations andHungarian artist Tiarna Herczeg. There’s even a signature in-room scent by The Raconteur.

Designed by Hamilton Island’s own designer, Carrie Williams, the result is relaxed Australian style using natural textures and soft hues to lull guests into a mellow state. This soothing palette runs throughout the resort, from its sun lounges to the shaded cabanas.

Every room and suite has been built with a balcony or terrace, perfectly framing postcard-perfect views of the surrounding reef and lush greenery.

inside a room at The Sundays
Stylish rooms feature natural, soothing tones. (Image: Sharyn Cairns)

Excellent activities and amenities

Each day has been planned with a relaxed structure, so guests can get involved in as much or as little as they wish.

Greet each day with morning yoga, pilates and island walks. Recharge with daily (and deliciously complimentary) sundaes by the pool. Wind down with moonlight movies twice a week and take advantage of family-focused features.

Guests have complimentary access to a range of water sports – from stand-up paddle boards to catamarans – so they can get their blood pumping before relaxing by the resort pool.

Or take a few extra steps to set up for a day on the sand without any crowds at the exclusive, guest-only beach. Settle in with a poolside aperitif for a front-row view of the stunning Catseye Bay.

aerial shot of The Sundays pool and catseye beach
Find picturesque Catseye Beach on your doorstep. (Image: Kara Rosenlund)

Delectable dining

What is rejuvenation if not a hearty choice of fresh, delectable dishes? That’s what guests will discover at The Sundays’s onsite restaurant, Catseye Pool Club .

Open all day for hotel guests and lunch and dinner for island diners, this relaxed yet elevated menu was created by acclaimed culinary duo, Josh and Julie Niland. It celebrates that community feeling of mealtimes while championing seasonal Australian produce.

“The vision behind [Catseye Pool Club] reflects so much of what I value – bringing people together to create memories in beautiful surroundings,” explains Josh.

table spread including a lobster dish from Catseye Pool Club, The Sundays
Enjoy classic Aussie meals with a twist at Catseye Pool Club. (Image: Kara Rosenlund)

Based on elevated versions of classic Aussie family dinners, expect refined simplicity. Think roasted Sun Farms Sommerlad chicken with sides like chicken fat roast potatoes, gravy and tomato and grilled bread salad, or barbecued line-caught Bowen coral trout with garlic saltbush and Warrigal greens.

A day spent by the pool can be complemented by a dedicated poolside menu, featuring wood-fired souvas. Don’t want to leave the room? Kick back and soak in the views with tasty treats delivered straight to your door, whether you’re after a full breakfast or late night snack.

view from catseye pool club at The Sundays hamilton island
Enjoy dinner and a view. (Image: Kara Rosenlund)

Exploring the island

While daily life at The Sundays is very much about the art of staying still, guests who seek more can explore the island with ease.

Take a day trip to the striking Whitehaven Beach, or see the iconic Heart Reef from above on a helicopter tour. Pop over to Hamilton Island’s championship golf course for a hit, or explore over 12 kilometres of the island’s stunning nature and wildlife. Later, slow the pace back down with a visit to Spa wumurdaylin .

Looking for more tasty treats? Visit one of the island’s restaurants – there are more than 20 to choose from.

Hikers on passage peak hike on hamilton island
Take on the beautiful hikes of Hamilton Island. (Image: Nick Leary)

Book your stay at The Sundays through hamiltonisland.com.au.

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