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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Your first look at Australia’s brand-new luxury camp

    Kate BettesBy Kate Bettes
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    The heavens take centre stage at this Outback NSW glamping lodge.

    Crane your neck. Look up. If it’s nighttime in a major Australian city, you might see a faint dusting of stars. Now imagine yourself out in the bush. Here, those stars aren’t just scattered dots – instead, they’re smudged across the sky in endless, glittering streaks. Welcome to Wilderluxe Lake Keepit , a new glamping lodge in one of the most picturesque corners of outback NSW.

    Between its eight stargazing tents, Gilay Guest Lounge, and shared tales of the Dreamtime night sky, this retreat is designed to exist in harmony with the breathtaking lake and surrounding landscape. Intrigued? Here’s everything you need to know.

    Bathed in warm light, a couple watches the sun dip beyond the horizon.
    Watch the sky melt into magic at Wilderluxe.

    Getting to Wilderluxe Lake Keepit

    Wilderluxe Lake Keepit is in the NSW Northern Tablelands, bordered by the Great Dividing Range. The lake itself is hard to miss: this mammoth body of water is two-thirds the size of Sydney Harbour.

    Just 40 minutes from Tamworth and close to Gunnedah, it’s on the inland route between Sydney and Byron Bay. Drive or take one of the daily flights to Tamworth’s airport.

    Aerial view of Wilderluxe.
    Let vast waters and towering ranges set the scene for your escape.

    Wilderluxe Lake Keepit rooms

    Don’t settle for a paltry room when you can sleep directly under the cosmos. Wilderluxe offers eight domed ‘Star Tents’ , all named after Aboriginal sky stories – like Djirri Djirri, the sacred messenger bird, Baiame, the Sky Father and great creator, and Dhinawan, the Emu in the Sky constellation.

    On a clear night, use your tent’s retractable roof for gazing above or wander to the outdoor bathtub on your private deck to soak under the night sky. No need to go anywhere. You can stay put come evening with a kitchenette inside and a gas barbecue on the deck.

    A couple gazes up at a sky ablaze with stars at Wilderluxe.
    Sleep beneath the stars.

    Style and character

    When it comes to aesthetics, Wilderluxe Lake Keepit stays on trend. The encampment blends with its surroundings, building up layers of minimalist visuals that mirror the ever-changing curves of the water.

    Earthy tones, natural materials and timber finishes also anchor the retreat in its bushland surrounds. It’s enough to deepen the sense of calm you’ll experience as you drive off-grid, and this is only heightened as you spot kangaroos grazing at dawn or hear the chatter of native birds by the lake.

    The dreamy sunset at Wilderluxe.
    Go off-grid in style at Wilderluxe Lake Keepit.

    Wilderluxe Lake Keepit dining

    ‘Dinner and a show’ hits differently with the property’s Big Sky dinner experience . Hosted in the Gilay Lounge, enjoy complimentary drinks and a grazing table with the host, followed by a screening of Big Sky Dreaming, a film produced exclusively for Wilderluxe guests in which Kamilaroi storyteller Uncle Len Waters narrates tales of the Dreaming above.

    Once your imagination has been fed, it’s time to take a seat fireside for a glass of Australian port and a serving of s’mores.

    Keen to explore the wider area? Staff can provide barbecue and picnic hampers, stuffed with regional meats, cheeses and organic local fare.

    Wilderluxe Lake Keepit facilities

    While you could very well spend all your time in your tent, sometimes it’s time to hit pause on the celestial show. Instead, make your way up to the Gilay Guest Lounge, where you can relax on the deck overlooking the lake or the outdoor fire pits. It’s a great way to unwind and clink glasses with other stargazers.

    The Gilay Lounge with the view of the lake.
    Unwind by the fire and raise a glass at Gilay Lounge.

    Wilderluxe Lake Keepit experiences

    No need to turn nocturnal; when the sun rises, there are still plenty of ways to touch the sky.

    Lake Keepit hosted the 2020 Women’s World Gliding Championships, and it’s one of the best places in Australia to stretch your wings. The local Soaring Club operates year-round, meaning you can book a gliding experience any day of the year – or opt for a scenic flight to take in the vast beauty from above.

    Prefer to keep your feet on solid ground? There are plenty of walking and cycling trails in and around the area. Luckily, bikes are part of the Wilderluxe package. All you have to do is ask a staff member for their favourite route, throw a picnic onto the back and cycle off into the great beyond.

    Alternatively, nab a stand-up paddleboard (SUP) or kayak and head out onto the lake. Or, if you’re feeling lucky, borrow a fishing rod and try your chances.

    A person kayaking through serene waters.
    Paddle into peace.

    The details

    A two-night minimum twin-share accommodation package includes Big Sky dinner and drinks experience, plus daily continental breakfast. As well as access to leisure equipment including mountain bikes, kayaks, SUPs and fishing gear.

    The interiors of the glamping tent.
    Let nature restore you, while luxury takes care of the rest.

    Start planning your outback glamping adventure at wilderluxe.com.au.