Airlines Oppose Australia Flight Delay Compensation Plan

A new proposal in Australia could give airline passengers the right to compensation when their flights are delayed or canceled due to airline-related issues. This means travelers would no longer have to fight for refunds. Instead, airlines would be required to pay compensation automatically.

However, not everyone is on board with the idea. Qantas and Virgin Australia strongly oppose the plan, claiming that mandatory compensation could increase operational costs and lead to higher ticket prices for all passengers. The airlines argue that instead of compensating travelers, they should focus on improving services to prevent delays in the first place.

So, what’s really going on? Is this new law a win for passengers, or could it make flying more expensive? And if the plan does go ahead, how can you claim compensation when your flight is delayed?

 

Australia’s Flight Compensation Law

The Australian government is considering new passenger protection law, that would force airlines to compensate travelers for long flight delays and cancellations caused by the airline itself. The new bill, called Airline Passenger Protections (Pay on Delay), was proposed in May 2024 and is currently voted on in Senate. 

This means that if your flight is significantly delayed for reasons within the airline’s control, you could automatically receive compensation—just like passengers in Europe and Canada do.

In Europe, for example, airlines must pay passengers up to €600 (about $1,000 AUD) for flight disruptions under EU Regulation 261. Canada and the US hava similar protections in place, ensuring airlines take financial responsibility for delays.

 

Why Airlines Are Against It

Both Qantas and Virgin Australia have expressed reservations about the proposed compensation scheme. They argue that such regulations could lead to increased operational costs, potentially resulting in higher ticket costs for consumers. Qantas, in particular, has cautioned that implementing an automatic compensation system might not address systemic issues and could escalate costs, ultimately leading to higher fares. Virgin Australia has echoed similar concerns, saying it would rather focus on improving its service than paying compensation.

 

Expert Opinions on Passenger Compensation

Our aviation experts highlight that as air travel continues to grow, so does the frequency of flight disruptions. Implementing compensation regulations in Austria can serve as a deterrent against avoidable delays, incentivizing airlines to enhance their operational efficiency.

Moreover, these measures ensure that passengers are rightfully compensated for their lost time and inconvenience, promoting fairness in the industry. Evidence from regions with established compensation schemes indicates that such regulations have not led to significant fare increases, contradicting some airlines' claims.

In Europe and Canada, where these laws already exist, ticket prices haven’t seen major hikes as a result. Instead, airlines have been forced to improve their schedules and reduce unnecessary delays.

 

How Passengers Can Get Compensation

If this law passes, it will be much easier for Australians to get compensation when flights are delayed or canceled. But even now, passengers flying with international airlines—especially to or from Europe—may already be eligible for compensation under existing regulations.

That’s where SkyRefund comes in. We help passengers claim compensation for flight delays, cancellations, and denied boarding. Instead of dealing with airline bureaucracy yourself, SkyRefund handles everything and only charges a fee if your claim is successful. It’s a hassle-free way to get the money you’re entitled to.

 

 

Final Thoughts

The introduction of the "Pay on Delay" legislation signifies a pivotal shift towards bolstering passenger rights in Australia. Drawing inspiration from established global practices, this move aims to hold airlines accountable and ensure fair treatment of passengers. While airlines express concerns about potential cost implications, evidence from other regions suggests that such regulations lead to improved service standards without disproportionately affecting ticket prices.

As the aviation industry continues to evolve, prioritizing passenger rights remains essential, and services like SkyRefund play a crucial role in supporting travelers through the compensation process.

 

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EU261: Your Passenger Rights and Compensation Eligibility

Canada’s Passenger Bill of Rights: All About the New Rules

The Montreal Convention: Passengers' Rights