If Australia had this, passengers could be paid for cancelled flights

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Why Australia needs an aviation ombudsman.

The financial difficulties of Rex Airlines, coming so soon after the bankruptcy of Bonza, have brought into sharp focus one of the federal government’s key priorities for aviation: enhancing passenger rights.

In each case, passengers were left with tickets for flights that did not fly. In the case of Rex, tickets were honoured by rivals Virgin Australia and Qantas, possibly trying to recapture the small toehold Rex had established in the Brisbane-Sydney-Melbourne golden triangle.

The Bonza story was more complex as the fledgling airline, which collapsed in May, had sought to exploit under-serviced routes to smaller leisure-based cities including Maroochydore and Port Macquarie.

In many cases, passengers were left out-of-pocket and stranded.

People boarding a Rex Airlines flight

Passenger rights have been brought into sharp focus after the recent financial difficulties of Rex Airlines and Bonza.

Support for an ombudsman

These failures will have emboldened the federal government’s plans to introduce stronger passenger protections and an airline ombudsman.

The release of its policy white paper is imminent. The paper covers aviation issues including competition between airports and airlines, the sector’s environmental impact and better mechanisms for consultation.

After years of opposition, Qantas and Virgin quietly fell in behind the idea in May, signalling a deal is close to being announced.

The ombudsman is designed to protect consumer rights in what is often monopolistic or quasi-monopolistic operating environments. With the exception of residents of southeast Queensland and the western suburbs of Melbourne, most Australians only have one airport from which to fly.

This, coupled with an effective airline duopoly, can lead to higher prices and poorer service for consumers, the Australian Consumer and Competition Commission (ACCC) has argued.

People boarding Bonza flight
Bonza suspended all flights and entered voluntary administration on 30 April.

The ACCC has been calling for better passenger rights for more than a decade. But its calls grew louder after it fined Qantas A$120 million for selling “ghost" flights in May.

Passengers did receive refunds, but the process was not easy compared to many overseas jurisdictions where compensation is automatic and based on distance travelled.

Australia is rare among developed countries for not having automatic compensation if a flight is cancelled or delayed.

The EU model

The leader in air passenger rights, as in many areas of consumer protection, is the European Union. The EU Passenger Rights regulation is 20 years old and now also applies to rail and bus passengers.

The regulation favours the passenger and awards compensation of up to €600 (almost A$1,000) for delays or cancellations. There are clauses for when a delay is unavoidable, but generally airlines have now built the scheme into their costs of doing business.

The scheme is well publicised and in 2022, about eight million passengers were eligible for refunds.

Air passenger rights in the UK continued in the EU mould after Brexit and were even strengthened.

But in a 2023 review into the UK scheme, some airlines argued “private insurance was a better option for some passengers", particularly those with disabilities.

The same reasoning led to the removal of Australia’s previous consumer protection scheme for airline passengers, the Travel Compensation Fund, which refunded customers when airlines or travel agencies went bankrupt.

Rex flight on ground
Australia’s Travel Compensation Scheme was abolished in 2014. (Image: Josh Withers)

The scheme was ended under the Abbott government in June 2014, with travellers told instead to take out their own travel insurance.

Labor is expected to reintroduce an element of corporate responsibility for airline delays, not least since Brazil, Canada and Türkiye have also followed the EU’s lead.

Brazil’s scheme is particularly generous, with up to R7,500 (A$1,950) available to passengers who have to pay for last minute accommodation if their flight is cancelled.

Lawmakers there countered claims by airlines that low cost airline passengers could stay in cheaper hotels, by applying the compensation uniformly, regardless of travel class.

Air passenger rights can be a vote winner, too. Before he withdrew his bid for reelection, US President Joe Biden trumpeted the automatic airline compensation scheme the US Department for Transportation will bring in this year.

Until now, airline compensation was mandated by the states without coordinated processes meaning some airlines used vouchers, some credits and a few cash to compensate customers.

Despite this, about US$3 billion (A$4.6 billion) in refunds have been issued to US passengers since 2020, including more than US$600 million to Southwest Airlines passengers alone.

This was due to a serious scheduling crisis which forced the low-cost carrier to cancel almost 60% of its flights in the 2022 summer.

By contrast, in Australia, air passengers have only had basic protections under consumer rights law since deregulation in 2002.

There is no guarantee of a seat or even flight the consumer purchased. This has led consumer advocates including Choice to support calls for an airline ombudsman and automatic delay and cancellation compensation.The Conversation

Rex flight in air
Australia offers weak consumer protection in a market with little competition. (Image: David Syphers)

Justin Wastnage, Adjunct Industry Fellow, Griffith Institute for Tourism, Griffith University.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Justin Wastnage
Justin Wastnage is the principal at aviation and tourism policy consultancy Message Shapers. In this position he has led research projects into cruise ship access options for Sydney Harbour, air transport access to New Caledonia and work around privatisation of council-owned airports in New South Wales.
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8 experiences that prove The Bellarine is the ultimate multi-gen getaway

    Kassia Byrnes Kassia Byrnes
    No matter your age and no matter your interests, Victoria’s coastal Bellarine region makes for a memorable getaway for the whole family.

    Curving into Port Phillip Bay and extending south from Geelong, The Bellarine is a gorgeous coast-meets-country destination. It’s a captivating mix of beachside towns, rolling farms and vineyards, effortlessly cool eating and drinking spots and coastal vistas that seem to stretch beyond the horizon.

    Among its many highlights is a plethora of family-friendly activities to suit all ages and all interests. Here’s your guide to the ultimate Bellarine getaway guaranteed to keep every generation happy.

    1. Tuckerberry Hill Farm

    Tuckerberry Hill Farm
    Pick your own fruit at Tuckerberry Hill Farm.

    There may be no better way to spend an early morning than by foraging and feasting on your own bounty of berries. At Tuckerberry Hill Farm, you can pick blueberries, strawberries and stone fruit from November through March. Take them home or enjoy on the farm’s sun-dappled grounds.

    Tuckerberry also has a regular market selling farm-fresh produce, plus an inviting on-site cafe doing light lunches, drinks, home-baked treats and condiments – many of which incorporate the farm’s own harvest.

    2. The Oxley Estate

    The Oxley Estate
    Wake up to the neighbours.

    A memorable holiday starts with a memorable place to stay, and The Oxley Estate delivers. Situated in the relaxed coastal town of Portarlington, the sprawling site offers thoughtfully styled rooms and activities that’ll keep both parents and kids entertained.

    Wander the fragrant rose gardens, olive grove and fruit-laden orchards. Meet the resident alpacas, donkeys, goats, sheep, chickens and ducks. Challenge your crew to a round of giant chess or mini golf. Or cool off in the shimmering saltwater pool after a busy day of exploring.

    Different room types cater to different groups, with the largest able to comfortably sleep eight.

    3. Oneday Estate

    Oneday Estate
    Taste small batch wines at Oneday Estate.

    Oneday Estate is a must-visit, featuring a restaurant, winery and bar. The winery lets you try small-batch, estate-grown shiraz, pinot noir and riesling. It’s also a vibrant and character-filled Sunday lunch spot in an eclectic stone-and-timber hall crafted from recycled materials and 100-year-old relics repurposed from the surrounding region.

    The on-site eatery and bar hosts weekly Sunday Sessions accompanied by tunes from local musicians, a buzzy atmosphere and flavour-packed food and drink. Order a round of delicious woodfired pizzas with toppings to suit all tastes, alongside a glass of Oneday’s signature wine.

    4. BIG4 Ingenia Holidays Queenscliff Beacon

    BIG4 Ingenia Holidays Queenscliff Beacon
    Kids will love BIG4 Ingenia Holidays Queenscliff Beacon.

    BIG4 holiday parks are renowned for their all-ages appeal, and BIG4 Ingenia Holidays Queenscliff Beacon in the coastal enclave of Queenscliff is no different. The pool and gym are a given, but there’s also a playground, pickleball and basketball courts, a jumbo-sized jump pad, an interactive games arena and an indoor games room equipped with toys, activities and entertainment.

    The diverse range of accommodation spans compact studios designed for three guests, all the way up to expansive beach houses accommodating up to 10, providing comfort and flexibility to suit every size of family.

    5. Bellarine Railway

    Bellarine Railway
    Take a journey aboard the Bellarine Railway.

    If your entourage includes any locomotive enthusiasts, book a journey aboard the Bellarine Railway. The more than 100-year-old steam train transports you to a bygone era and takes you through the rolling farmland and windswept coastal landscapes that make The Bellarine so beautiful.

    The Swan Bay Express is an easy 45-minute ride perfect for younger passengers (and even allows dogs on board), or you could opt for a themed trip. There are seasonal events like the Polar Express (a festive favourite in the lead-up to Christmas), along with the Blues Train (a high-energy experience of live music and dancing) and The Q Train (a roving fine-dining feast celebrating regional produce).

    6. The Dunes

    waiter holding desserts at The Dunes, the bellarine
    Save room for dessert. (Image: Visit Vic)

    The Dunes offers the perfect balance of polished and playful, a breezy beachside bar and restaurant that appeals to adults and kids alike.

    Feast on moreish snacks, share plates and mains from the Italian-inspired menu, or a selection of San Marzano-topped pizzas fresh from the wood-fired oven. Pair your meal with a classic cocktail, an ice-cold beer or a glass from the generous drinks menu, which brims with local drops. Little ones are well catered for with a line-up of kid-approved meals for breakfast and lunch.

    If you’re simply swinging by en route to the family-friendly beach, grab a bite at The Dunes’ beachside kiosk before strolling down for a paddle or surf.

    7. Sea All Dolphin Swims

    dolphins playing in The Bellarine
    Spot the locals with Sea All Dolphin Swims. (Image: Visit Vic)

    The sparkling waters around The Bellarine are home to dolphins, fur seals, plus a flurry of seabirds. Sea All Dolphin Swims lets you see some of these magnificent animals up close aboard one of their small-group vessels.

    Head out on a sightseeing tour and spot local wildlife darting around the boat, or dive right in with a swim adventure tour. You’ll be swimming alongside dolphins and seals in their natural habitat – a bucket-list experience you won’t forget fast.

    Swimming and snorkelling gear is provided, and guides are trained to ensure a gentle, eco-friendly encounter for both swimmers and sea creatures.

     8. Jack Rabbit

    aerial of jack rabbit winery and vineyard
    Everyone has a menu to enjoy at Jack Rabbit. (Image: Visit Vic)

    Jack Rabbit is a one-stop dining destination, with a casual cafe and refined restaurant in one place.

    If your mood leans laid-back, the House of Jack Rabbit is a lovely spot for brunch, lunch or dinner. The cafe serves a produce-driven all-day menu filled with seasonal mains, generous sharing platters and a playful kids menu to suit even the pickiest of eaters.

    If you’re after something more elevated, Jack Rabbit Restaurant does plates that change with the seasons and incorporate plenty of local produce. Even younger guests are well catered to, with a considered yet familiar kids’ menu that’s just as vibrant as the grown-up one.

    To start planning your trip or for more inspiration, head to visitgeelongbellarine.com.au

    If Australia Had This, Passengers Could Be Paid For Cancelled Flights