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)
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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Wine, art and good food: 15 ways to spend your time in Albury Wodonga

    Kassia Byrnes Kassia Byrnes
    More than just a stopover, Albury Wodonga is an elevated city escape immersed in nature.

    Perhaps best known as a road trip stop between Sydney and Melbourne, Albury Wodonga offers a combination of natural beauty, cultural experiences and a vibrant food scene that make it well worth its own journey.

    Nestled on the banks of the mighty Murray River and surrounded by famed wine and gold rush regions, this riverside town packs a broad punch. Discover how best to spend your days on the border.

    Exploring the Murray River

    1. The Crossing Place Trail

    woman looking at sculpture along Crossing Place Trail loop
    Admire sculptural works from local Indigenous artists.

    Head to the original crossing places of the Murray River since 1848 – at the junctions of Bungambrawatha Creek and Oddies Creek. Today, these crossings are still used by cars and cattle, but the five-kilometre Crossing Place Trail loop connects the two bridges for bike riders and walkers.

    Wander through gum trees, and maybe even spot local platypus and birdlife. Stop along the way to admire sculptural works from local Indigenous artists, see evidence of a scar tree and learn about the importance of this billabong environment to Aboriginal and Torres Strait Islander peoples.

    2. Canoe The Murray

    two people kayaking along the murray river at Noreuil Park
    Hire canoes or kayaks and get out on the river.

    What better way to get a feel for the Murray River than by getting out on its waters? Hire canoes or kayaks from Canoe the Murray, then explore solo or join one of the offered tours. Get up early for a Sunrise and coffee tour, watch the sun dip below the water on a sunset tour or choose one of several daytime trips.

    Stand-up paddleboard hire and other water sports, fishing and swimming are also available to river explorers.

    3. Noreuil Park Foreshore

    aerial of Noreuil Park albury wodonga
    Cool off at Noreuil Park Foreshore. (Image: Visit Victoria)

    Just outside Albury’s CBD, the riverside Noreuil Park becomes a hub of activity as the weather heats up. Set up on picnic tables under shady trees, use the public barbecues (or pop into the nearby cafe) and cool off with a float down the river.

    4. Mungabareena Reserve and Water Works

    Mungabareena Reserve albury wodonga
    Spend time at Mungabareena Reserve. (Image: Visit Albury Wodonga)

    Delve into nature and culture at the beautiful Mungabareena Reserve. Recognised by state law as a ‘Declared Aboriginal Place’, it was once a historical meeting point for trade and journeys to Mount Bogong for the local Wiradjuri people and still holds deep significance.

    It’s another popular spot for fishing, swimming and picnics, while the nearby Water Works area is a great place for spotting wildlife. Try your luck seeing platypuses, wood ducks or rainbow bee-eaters.

    Adventuring on Lake Hume

    1. Walk the dam wall

    parent and child look at the view from the damn wall walk at lake hume
    Enjoy the view from the dam wall. (Image: Visit Albury Wodonga)

    The majestic Lake Hume – a massive man-made reservoir on the Murray River – was once the largest dam in the Southern Hemisphere.

    A great way to get acquainted is by walking along the dam wall, taking in views of outflows, electricity turbines and the transmission plant from above. Not to mention vistas of the lake and the Murray. It’s a particularly gorgeous spot for sunsets and sunrises.

    A wide sealed walkway gives easy access to the wall, and informative signs and displays along the way educate on the dam’s construction.

    2. The High Country Rail Trail

    This 44-kilometre trail hugs the shoreline. Stop along the way at the historic town of Tallangatta, relocated to its current position in the 1950s after its original location was flooded. Cross the lake over the bright red Sandy Creek Bridge. Enjoy a lakeside picnic or go for a swim at Ebden, Ludlow’s or Huon Reserve.

    3. Water sports

    two people watching SUP boarders and a boat our on the water at lake hume
    Dive into water sports on Lake Hume.

    Lake Hume is a popular local spot for boating, fishing, and swimming. Drop a line or dive right into the clear waters.

    Sip and Savour

    1. Dux Albury

    two people sitting at counter drinking wine inside Dux Albury
    Sit down to delicious meals and wine at Dux.

    Those looking for a high-end dining experience need to book a table at Dux Albury in the heart of Albury Wodonga. Sit down for curated wine lists, cocktails and share plates. Think starters like burrata with beetroot, chervil, caper berry and sherry, mains like Wagyu sirloin with Café De Paris, red wine and caramelised onions and all manner of fresh seafood.

    2. Murray Towns Brewing Co.

    people being served lunch at Murray Brewing Co.
    Recharge at Murray Brewing Co.

    Perched on the banks of the river, Murray Towns Brewing Co. has come a long way since two mates started experimenting in their backyard chook shed. With all beer brewed onsite and a sun-drenched beer garden to drink them in, it’s a perfect stop along a bike ride or walk.

    3. Temperance and General

    Step into Albury’s original laneway bar, Temperance and General. Set inside a historic building, but offering a modern vibe, the bar is locally famous for its cocktail list. Stop in before or after dinner for a creative tipple.

    4. BeanStation Cafe

    two people drinking coffee at Bean Station albury wodonga
    Dine on a modern Australian menu.

    Dine on a modern Australian menu, inside the historic Wodonga train station building, dating back to 1873. Pop over in the morning and line up with the locals for great coffee and all-day brekkie, or head over after midday to swap the beans for local wines and Aussie boutique beers.

    5. River Deck Cafe

    waiter holding two dishes at Riverdeck Cafe albury wodonga
    Soak in views and good food at Riverdeck Cafe. (Image: Visit Victoria)

    Another dining destination next to the Murray, the award-winning River Deck Cafe provides a large deck covered in dappled sunlight that makes for the ideal long lunch spot. Here, menus focus on natural, native and local ingredients sourced from regional farmers and producers across Albury Wodonga and surrounds.

    Museums, murals and more

    1. Albury Wodonga Public Art Trail

    Gain a sense of Albury Wodonga’s vibrant arts community while wandering the Public Art Trail. Works range from sculptures and murals to wrapped infrastructure. Be sure to check the council map before you head out, so you don’t miss a thing.

    2. Murray Art Museum Albury (MAMA)

    couple admiring the art at Murray Art Gallery
    Stop into one of the most visited galleries outside of Sydney. (Image: Visit Albury Wodonga)

    MAMA forms the heart of art and culture in Albury Wodonga, some may say the entire Murray region. In fact, it’s one of the most visited galleries outside of Sydney. What makes it so lauded? The museum has earned a reputation for curating innovative, original exhibitions from some of the best contemporary Australian and international artists.

    3. HotHouse Theatre

    Originally built in 1928 as the Butter Factory Theatre, HotHouse Theatre has been a home of performance since 1997. Stop by to see the best of new Australian theatre. Continue to explore unique architecture on the Historic Building Walking Tour of Albury, the perfect way to round out your stay.

    Start planning your Albury Wodonga getaway at visitalburywodonga.com.