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.

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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)

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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)

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Emily Murphy
Emily Murphy is Australian Traveller's Email & Social Editor, and in her 4+ years 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? South Australia and The Kimberley.
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Explore historic wine towns and sculpture trails on a 3-day self-guided Murray River cruise

    Ricky French Ricky French
    Slow down and find your rhythm on a Murray River journey through time and place. 

    Trust is a funny thing. It seems not that long ago that my mother was insisting on pouring the milk into my cereal bowl, because she didn’t trust me not to slosh it over the table, and yet here I am on the Murray River at Mildura in far north-west Victoria, being handed the keys to a very new and very expensive luxury houseboat. 

    After a crash course in how not to crash, I’m at the wheel of the good ship Elevate – pride of the All Seasons fleet – guiding her upstream past red-ochre cliffs as pelicans glide above the rippled river and kookaburras call from reedy banks. There’s a brief moment of breath-holding while I negotiate a hairpin turn around a jagged reef of skeletal, submerged gum trees, before a cheer rings out and calm descends as the timeless river unfurls in front of us.    

    Murray River
    The Murray River winding through Yarrawonga. (Image: Rob Blackburn)

    Setting sail from Mildura 

    Murray River birds
    Home to a large number of bird species, including pelicans. (Image: The Precint Studios)

    A journey along the Murray River is never less than magical, and launching from Mildura makes perfect sense. Up here the river is wide and largely empty, giving novice skippers like myself the confidence to nudge the 60-tonne houseboat up to the riverbank where we tie up for the night, without fear of shattering the glass elevator (the boat is fully wheelchair accessible) or spilling our Champagne.  

    My friends and I spend three days on the water, swimming and fishing, sitting around campfires onshore at night, and basking in air so warm you’d swear you were in the tropics. The simplicity of river life reveals an interesting dichotomy: we feel disconnected from the world but at the same time connected to Country, privileged to be part of something so ancient and special.  

    Stop one: Echuca  

    19th-century paddlesteamers
    A historic 19th-century paddlesteamer cruises along the Murray River. (Image: Visit Victoria)

    The six-hour drive from Melbourne to Mildura (or four hours and 20 minutes from Adelaide) is more than worth it, but you don’t have to travel that far to find fun on the river. Once Australia’s largest inland port, Echuca is the closest point on the Murray to Melbourne (two hours 45 minutes), and you’ll still find a plethora of paddlesteamers tethered to the historic timber wharf, a throwback to the thriving river trade days of the 19th century. The PS Adelaide, built in 1866 and the oldest wooden-hulled paddlesteamer operating in the world, departs daily for one-hour cruises, while a brand-new paddlesteamer, the PS Australian Star, is launching luxury seven-night voyages in December through APT Touring.  

    The town is also a hot food and wine destination. St Anne’s Winery at the historic Port of Echuca precinct has an incredibly photogenic cellar door, set inside an old carriage builders’ workshop on the wharf and filled with huge, 3000-litre port barrels. The Mill, meanwhile, is a cosy winter spot to sample regional produce as an open fire warms the red-brick walls of this former flour mill.  

    Stop two: Barmah National Park 

    Barmah National Park
    Camping riverside in Barmah National Park, listed as a Ramsar site for its significant wetland values. (Image: Visit Victoria/Emily Godfrey)

    Just half-an-hour upstream, Barmah National Park is flourishing, its river red gum landscape (the largest in the world) rebounding magnificently after the recent removal of more than 700 feral horses. The internationally significant Ramsar-listed wetland sits in the heart of Yorta Yorta Country, with Traditional Owners managing the environment in close partnership with Parks Victoria. Walkways weave through the forest, crossing creeks lined with rare or threatened plants, passing remnants of Yorta Yorta oven mounds and numerous scar trees, where the bark was removed to build canoes, containers or shields.  

    The Dharnya Centre (open weekdays until 3pm) is the cultural hub for the Yorta Yorta. Visitors can learn about the ecological significance of the Barmah Lakes on a 90-minute river cruise, led by a First Nations guide, or take a one-hour, guided cultural walking tour along the Yamyabuc Trail.  

    Stop three: Cobram 

    Yarrawonga MulwalaGolf Club Resort
    Yarrawonga Mulwala Golf Club Resort. (Image: Visit Victoria)

    Continue east to Cobram to find the southern hemisphere’s largest inland beach. Swarming with sun-seekers in summer, the white sand of Thompson’s Beach is shaded by majestic river red gums and dotted with hundreds of beach umbrellas, as beachgoers launch all manner of water craft and set up stumps for beach cricket. But the beach is at its most captivating at sunset, when the crowds thin out, the glassy river mirrors the purple sky, and the canopies of the gum trees glow fiery orange. 

    The region is also home to some fine resorts and indulgent retreats. Yarrawonga Mulwala Golf Club Resort has two riverside championship golf courses, luxury apartments and self-contained villas. While not strictly on the Murray, the historic wine town of Rutherglen is rife with boutique (and unique) accommodation, including an exquisitely renovated red-brick tower in a French provincial-style castle at Mount Ophir Estate. Fans of fortified wines can unravel the mystery of Rutherglen’s ‘Muscat Mile’, meeting the vignerons and master-blenders whose artistry has put the town on the global map for this rich and complex wine style.  

    Stop four: Albury-Wodonga 

    First Nations YindyamarraSculpture Walk
    First Nations Yindyamarra Sculpture Walk is part of the Wagirra Trail. (Image: Carmen Zammit)

    Follow the river far enough upstream and you’ll arrive at the twin border cities of Albury-Wodonga. The Hume Highway thunders through, but serenity can be found along the five-kilometre Yindyamarra Sculpture Walk – part of the Wagirra Trail that meanders through river wetlands just west of Albury in Wiradjuri country. Fifteen sculptures by local First Nations artists line the trail, conveying stories of reconciliation, enduring connection to culture, local Milawa lore and traditional practices. It feels a long way from Mildura, and it is, but the pelicans and kookaburras remind us that it’s the same river, the great conduit that connects our country. 

    A traveller’s checklist  

    Staying there

    New Mildura motel Kar-rama
    New Mildura motel Kar-rama. (Image: Iain Bond Photo)

    Kar-Rama is a brand-new boutique, retro-styled motel in Mildura, with a butterfly-shaped pool and a tropical, Palm Springs vibe. Echuca Holiday Homes has a range of high-end accommodation options, both on the riverfront and in town. 

    Playing there

    BruceMunro’s Trail of Lights in Mildura
    Bruce Munro’s Trail of Lights in Mildura. (Image: Imogen Eveson)

    Artist Bruce Munro’s Trail of Lights installation, comprising more than 12,000 illuminated ‘fireflies’, is currently lighting up Mildura’s Lock Island in the middle of the Murray. Murray Art Museum Albury (MAMA) is a hub for contemporary art, with a rotating roster of exhibitions, and is a major outlet for young and First Nations artists. 

    Eating there

    Mildura’s diverse demographic means it’s a fantastic place to eat. Andy’s Kitchen is a local favourite, serving up delicious pan-Asian dishes and creative cocktails in a Balinese-style garden setting. Call in to Spoons Riverside in Swan Hill to enjoy locally sourced, seasonal produce in a tranquil setting overlooking the river.