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 reasons locals will tell you the Mornington Peninsula is incredible in winter

    Gemma Kaczerepa Gemma Kaczerepa
    The Mornington Peninsula might be synonymous with summer, but winter offers equally compelling reasons to visit.

    Come winter, the Mornington Peninsula transforms into a relaxing and rejuvenating escape. Think misty trails and dramatic ocean views along the rugged coastline, drinking and dining by crackling firesides, fewer crowds and a more small-town feel – the perfect ingredients for a slow and restorative weekend.

    If you want a truly local winter experience, here’s where you need to go.

    1. Sample spirits at local distilleries

    JimmyRum distillery on the mornington peninsula
    Sample small-batch rums and cane spirits at JimmyRum. (Image: Visit Victoria)

    No matter your tipple, you’re bound to find a Peninsula distillery to suit. Chief’s Son is beloved by locals and visitors alike for its award-winning range of single malt whiskies. Make sure to try the Black Forge – a heady combination of whisky and coffee.

    JimmyRum is the Mornington Peninsula’s first and only craft rum distillery. Enjoy a tasting to sample small-batch rums and cane spirits, or book a table to feast on generous share plates and creative cocktails.

    Bass & Flinders is another must-visit, and something of a local icon. It was the Peninsula’s first distillery and remains a favourite for craft gins, brandies and fruity liqueurs. Pick up a bottle (or two) to take home and toast your winter getaway.

    2. Warm up in the hot springs

    man in pool at Alba Thermal Springs & Spa
    Dive into Alba Thermal Springs & Spa.

    Locals know winter is the best time to visit the famous hot springs. With the air cool and crisp and the springs reaching temperatures up to 43 degrees, the experience is akin to a warm embrace.

    If you’re travelling with kids or want something more laid-back, Peninsula Hot Springs is your best bet. Spanning 42 acres and with an organic vibe, the complex has hillside pools, saunas, bath houses and family-friendly spaces perfect for all ages.

    Alba Thermal Springs & Spa is slightly more luxe, with 25 thermal pools amid architectural surrounds. The on-site restaurant, Thyme, is a highlight, featuring seasonal lunch dishes, high teas and picnics, and a beautifully designed interior.

    3. Coastal walks feel more dramatic

    Millionaire's Walk in sorrento
    Take in gorgeous seaside scenery on Millionaire’s Walk. (Image: Visit Victoria)

    The Peninsula is situated between Port Phillip Bay and the wide expanse of the Southern Ocean, giving it front-row access to stunning sea vistas. In winter, and especially on rainy days, the outlook is incredibly dramatic, with waves crashing against the clifftops and a steely hue. The trails hugging the ocean are also much quieter and mostly filled with locals.

    Make sure to drop by Cape Schanck Lighthouse on your coastal walk – the lighthouse was built in 1859, making it one of Victoria’s oldest. Climb the stone stairs all the way to the top and take in panoramic, windswept views.

    Millionaire’s Walk in Sorrento is another local favourite. This easy 1.5-kilometre coastal trail takes you past gorgeous seaside scenery and some of the grand homes the town is famous for.

    4. Sip on world-class pinot noir

    green olive winery at red hill on the mornington peninsula
    Stop by Red Hill’s cellar doors, like Green Olive. (Image: Visit Victoria)

    If you’re a fan of the light-bodied and elegant red, your winter escape should include a stop at one of the Peninsula’s many cellar doors.

    The hinterlands around the township of Red Hill are particularly renowned for pinot noir (and chardonnay) thanks to their cool maritime climate and red clay soils. There are more than 50 boutique cellar doors to choose from, where you can sample a selection or do as the locals do: take a bottle back to your accommodation to savour by the fireside.

    5. See misty rolling hills from above

    Arthurs Seat Eagle on mornington peninsula
    Get a bird’s-eye view on Arthurs Seat Eagle. (Image: Visit Victoria)

    Peninsula winters bring with them a thick mist and fog, which make for atmospheric and dreamlike scenery. Shroud yourself in the clouds with a gondola ride at Arthurs Seat Eagle. The summit is 305 metres high, giving you a genuine bird’s-eye view of the entire Peninsula region and Port Phillip Bay in their moody and misty glory.

    6. Dine beside a roaring fire

    table full of dishes at Rare Hare Wine & Food Store
    Enjoy food and wine beside a roaring fireplace at Rare Hare Wine & Food Store. (Image: Visit Victoria)

    The Peninsula is an essential part of Melbourne’s “food bowl”, with 70 per cent of the region a designated Green Wedge zone. It’s little surprise, then, that there are so many opportunities to try its fresh produce. Visit farm gates like Torello Farm, Hawkes Farm and Tully’s Corner to sample the region’s winter harvest: apples, root vegetables, mushrooms and truffles.

    Nothing beats a fireside feast in winter, and several local dining venues offer exactly that. Lancemore Lindenderry Red Hill is a two-hatted restaurant with a roaring fire, Crittenden Estate does seasonal dishes and estate wines amid a cosy indoor space, and Rare Hare Wine & Food Store has a double-sided fireplace that anchors the warm and welcoming dining room.

    If the sun is out, enjoy a picnic amid the sprawling grounds of Montalto Winery. You’ll kick off with a tasting before heading outdoors to a covered picnic table, where you’ll feast on starters, mains, desserts and more wine.

    7. Go whale watching at Cape Schanck

    whales in victoria australia
    Look for whales between May and October. (Image: Visit Victoria)

    Beyond the spectacular lighthouse views, Cape Schanck is also an excellent place to watch whales migrating through the Bass Strait. Between May and October each year, particularly during June and July, Southern Right and Humpback whales make their way past the area, and can sometimes be spotted just 150 metres from the shoreline. Many locals watch for free from the cape’s boardwalks and viewing platforms, but you can also book a boat tour.

    8. Explore Point Nepean National Park

    Point Nepean National Park is on the Mornington Peninsula’s tip
    Follow over 80 walking and cycling tracks. (Image: Visit Victoria)

    Point Nepean National Park is on the Mornington Peninsula’s tip, just outside Portsea. Set right beside the clifftops, it’s wild, windswept and defined by its rugged terrain.

    Locals love the national park for its more than 80 walking and cycling tracks, and you’ll often spot them getting a winter workout in. But if you’ve never been here, make sure to discover its rich history.

    It forms part of an Indigenous cultural landscape on the lands of the Bunurong People, and holds significance as a site for early settlement and military operations. Numerous historical buildings – including the heritage-listed Quarantine Station – still stand today.

    Start planning the ultimate winter escape at visitmorningtonpeninsula.org.