Flight delays and refunds? Australia’s new aviation watchdog will help

Emily Murphy Emily Murphy
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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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This luxe trawler tour is redefining Victoria’s seafood experience

    Chloe Cann Chloe Cann
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    Victoria’s ‘mussel capital’ is the source of exceptional shellfish used by top chefs far and wide. Step aboard a beautifully refurbished trawler to see how these plump and juicy bivalves are sustainably cultivated.

    A curtain is slowly winched from the placid, teal waters just off Portarlington , like a floating garland beside our boat. The ropes heave with blue mussels, the star attraction of our tour. But as we reach to pluck our own, it’s quickly clear they’re not alone; a mass of weird and wonderful creatures has colonised the ropes, turning them into a living tapestry. ‘Fairy’ oysters, jelly-like sea squirts, and tiny, wriggling skeleton shrimp all inhabit this underwater ecosystem.

    We prize our bivalve bounty from the ropes, and minutes later the mussels arrive split on a platter. The plump orange morsels are served raw, ready to be spritzed with wedges of lemon and a lick of chilli as we gaze out over the bay. They’re briny, tender and faintly sweet. “This wasn’t originally part of the tour,” explains Connie Trathen, who doubles as the boat’s cook, deckhand and guide. “But a chef [who came onboard] wanted to taste the mussels raw first, and it’s now become one of the key features.”

    A humble trawler turned Hamptons-style dreamboat

    inspecting bivalve bounty from the ropes
    Inspecting the bounty. (Image: Visit Victoria/Hannyn Shiggins)

    It’s a crisp, calm winter’s day, and the sun is pouring down upon Valerie, a restored Huon pine workhorse that was first launched in January 1980. In a previous life she trawled the turbulent Bass Strait. These days she takes jaunts into Port Phillip Bay under the helm of Lance Wiffen, a fourth-generation Bellarine farmer, and the owner of Portarlington Mussel Tours . While Lance has been involved in the fishing industry for 30-plus years, the company’s tour boat only debuted in 2023.

    holding Portarlington mussels
    See how these plump and juicy bivalves are sustainably cultivated.

    It took more than three years to transform the former shark trawler into a dreamy, Hamptons-esque vessel, with little expense spared. Think muted green suede banquettes, white-washed walls, Breton-striped bench cushions, hardwood tables, bouquets of homegrown dahlias, and woollen blankets sourced from Waverley Mills, Australia’s oldest working textile mill. It’s intimate, too, welcoming 12 guests at most. And yet there’s nothing pretentious about the experience – just warm, down-to-earth Aussie hospitality.

    As we cruise out, we crack open a bottle of local bubbles and nibble on the most beautifully curated cheese platter, adorned with seashells and grey saltbush picked from the water’s edge that very morning. Australasian gannets soar overhead, and I’m told it’s not uncommon for guests to spot the odd seal, pod of dolphins, or even the occasional little penguin.

    The sustainable secret behind Victoria’s best mussels

    blue mussels off Portarlington
    Blue mussels sourced just off Portarlington.

    Connie and Lance both extol the virtues of mussels. They’re delicious. A lean source of protein and packed with omega-3 fatty acids, vitamin B12, iron, selenium, and zinc. They’re cooked in a flash (Connie steams our fresh harvest with cider and onion jam). And they’re also widely regarded as one of the most sustainable foods in the world.

    Portarlington mussels with lemon and chilli
    Mussels served with lemon and chilli.

    “Aquaculture is [often] seen as destructive, so a lot of our guests are really surprised about how environmentally friendly and sustainable our industry is,” Lance says. “[Our mussels] would filter 1.4 billion litres of water a day,” he adds, explaining how mussels remove excess nitrogen and phosphorus from the water. “And through biomineralisation, we lock carbon into mussel shells.”

    a hand holding a Portarlington mussel
    Mussels are a sustainable food.

    Despite their glowing list of accolades, these molluscs have long been seen as the oysters’ poorer cousins. “It was a really slow start,” explains Lance, who says that in the early days of his career, “you could not sell mussels in Victoria”.

    But word has slowly caught on. Chefs as globally acclaimed as Attica’s Ben Shewry and even René Redzepi of Noma, Denmark, have travelled to these very waters just to try the shellfish at the source, sharing only the highest praise, and using Lance’s mussels in their restaurants.

    guests sampling Portarlington mussels onboard
    Sampling the goods onboard. (Image: Visit Victoria/Hannyn Shiggins)

    According to Lance there’s one obvious reason why the cool depths of Portarlington outshine other locations for mussel farming. “The water quality is second to none,” he says, noting how other regions are frequently rocked by harvest closures due to poor water quality. “We grow, without a doubt, some of the best shellfish in the world.” And with Lance’s bold claims backed up by some of the industry’s greatest names, perhaps it won’t be much longer until more Aussies uncover the appeal of Portarlington’s mussels.