In a world where air travel has become a staple of modern life, the disparities in passenger rights between different countries have become increasingly pronounced. In Australia, recent inquiries have revealed a stark contrast in consumer protections for airline passengers compared to those enjoyed by their counterparts in the United States and Europe.
During a recent parliamentary inquiry, Nationals Senator Bridget McKenzie raised a critical point regarding the lack of robust consumer protections for Australian passengers, questioning executives from the country’s two largest airlines, Virgin Australia and Qantas. With these airlines commanding a substantial 70 percent share of the domestic market, the implications of their operational policies and customer service practices resonate deeply with millions of travelers. McKenzie highlighted that while U.S. and EU passengers benefit from comprehensive compensation schemes, Australians are left wanting.
The Labor government’s release of the Aviation White Paper in August 2024 signaled a commitment to improving the customer experience within the aviation sector, projecting a vision for the industry through to 2050. A cornerstone of this initiative is the proposed Aviation Customer Rights Charter, which aims to establish a framework for “prompt and fair remedies and support” for travelers facing delays and cancellations. However, while the Charter promises certain rights—such as the option to cancel flights for a full refund, assistance with rebooking, and meal and accommodation reimbursements—it notably lacks a compensation mechanism akin to that of the European Union.
To better understand the implications of such policies, it is essential to examine how compensation schemes operate in other jurisdictions. The EU’s Air Passengers Rights Regulation, enacted in 2004, sets forth clear guidelines for compensating passengers facing delays or cancellations, offering sums ranging from €250 to €600, depending on flight distance. In contrast, while U.S. regulations, particularly those introduced under the Biden administration in 2024, mandate airlines to provide automatic refunds, they do not guarantee compensation for delays. This disparity raises questions about the adequacy of protections for Australian travelers.
A recent survey conducted by travel insurance provider Insure&Go underscored the concerns of Australian passengers, with 76 percent identifying cancellations and delays as their primary worry for domestic travel in 2025. Other significant concerns included extreme weather (59 percent) and lost luggage (42 percent). These statistics serve as a backdrop to the ongoing discussions about evolving passenger rights in Australia.
During the parliamentary inquiry, Virgin Australia’s general manager, Stephen Beckett, acknowledged the importance of consumer protection but avoided directly addressing the disparity in protections. He emphasized the need for better access to Australian Consumer Law, which he claimed would allow customers to seek remedies when flights fail to meet performance expectations. However, he and Qantas Domestic CEO Markus Svensson, who echoed Beckett’s sentiments, cautioned that compensation schemes in the EU have not necessarily translated to improved operational performance. They argued that the root causes of delays—such as weather disruptions, air traffic control issues, and unforeseen operational challenges—are not alleviated by compensation alone.
Despite these assertions, McKenzie remained unsatisfied, pointing out that the aim of compensation schemes is not merely to enhance airline accountability but to ensure that Australian travelers receive the financial redress they deserve. She noted that European airlines have compensated travelers to the tune of approximately $9 billion, a stark contrast to the situation for Australians under current legislation.
The complexities of Australian consumer law further complicate the landscape for air travelers. Victoria Roy, chair of the Australian Lawyers Alliance’s Travel Law Special Interest Group, highlighted the absence of a dedicated framework addressing passenger rights. She lamented that current laws are not only vague but also difficult for the average traveler to navigate. As a result, many Australians remain unaware of their rights, and those who do possess rights often find it challenging to enforce them.
Roy’s call for legislative reform underscores the urgent need for a simplified, transparent passenger rights framework that can effectively address the unique challenges faced by air travelers in Australia. The proposed Aviation Customer Rights Charter, while a step in the right direction, must go further to ensure that Australian consumers are equipped with the protections they need and deserve.
As the aviation sector evolves, so too must the policies that govern it. The journey toward enhanced passenger rights in Australia is ongoing, and the voices of travelers, lawmakers, and industry leaders alike will play a crucial role in shaping a future where flying is not only accessible but also fair and equitable for all.
