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.
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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Wine, art and good food: 15 ways to spend your time in Albury Wodonga

    Kassia Byrnes Kassia Byrnes
    More than just a stopover, Albury Wodonga is an elevated city escape immersed in nature.

    Perhaps best known as a road trip stop between Sydney and Melbourne, Albury Wodonga offers a combination of natural beauty, cultural experiences and a vibrant food scene that make it well worth its own journey.

    Nestled on the banks of the mighty Murray River and surrounded by famed wine and gold rush regions, this riverside town packs a broad punch. Discover how best to spend your days on the border.

    Exploring the Murray River

    1. The Crossing Place Trail

    woman looking at sculpture along Crossing Place Trail loop
    Admire sculptural works from local Indigenous artists.

    Head to the original crossing places of the Murray River since 1848 – at the junctions of Bungambrawatha Creek and Oddies Creek. Today, these crossings are still used by cars and cattle, but the five-kilometre Crossing Place Trail loop connects the two bridges for bike riders and walkers.

    Wander through gum trees, and maybe even spot local platypus and birdlife. Stop along the way to admire sculptural works from local Indigenous artists, see evidence of a scar tree and learn about the importance of this billabong environment to Aboriginal and Torres Strait Islander peoples.

    2. Canoe The Murray

    two people kayaking along the murray river at Noreuil Park
    Hire canoes or kayaks and get out on the river.

    What better way to get a feel for the Murray River than by getting out on its waters? Hire canoes or kayaks from Canoe the Murray, then explore solo or join one of the offered tours. Get up early for a Sunrise and coffee tour, watch the sun dip below the water on a sunset tour or choose one of several daytime trips.

    Stand-up paddleboard hire and other water sports, fishing and swimming are also available to river explorers.

    3. Noreuil Park Foreshore

    aerial of Noreuil Park albury wodonga
    Cool off at Noreuil Park Foreshore. (Image: Visit Victoria)

    Just outside Albury’s CBD, the riverside Noreuil Park becomes a hub of activity as the weather heats up. Set up on picnic tables under shady trees, use the public barbecues (or pop into the nearby cafe) and cool off with a float down the river.

    4. Mungabareena Reserve and Water Works

    Mungabareena Reserve albury wodonga
    Spend time at Mungabareena Reserve. (Image: Visit Albury Wodonga)

    Delve into nature and culture at the beautiful Mungabareena Reserve. Recognised by state law as a ‘Declared Aboriginal Place’, it was once a historical meeting point for trade and journeys to Mount Bogong for the local Wiradjuri people and still holds deep significance.

    It’s another popular spot for fishing, swimming and picnics, while the nearby Water Works area is a great place for spotting wildlife. Try your luck seeing platypuses, wood ducks or rainbow bee-eaters.

    Adventuring on Lake Hume

    1. Walk the dam wall

    parent and child look at the view from the damn wall walk at lake hume
    Enjoy the view from the dam wall. (Image: Visit Albury Wodonga)

    The majestic Lake Hume – a massive man-made reservoir on the Murray River – was once the largest dam in the Southern Hemisphere.

    A great way to get acquainted is by walking along the dam wall, taking in views of outflows, electricity turbines and the transmission plant from above. Not to mention vistas of the lake and the Murray. It’s a particularly gorgeous spot for sunsets and sunrises.

    A wide sealed walkway gives easy access to the wall, and informative signs and displays along the way educate on the dam’s construction.

    2. The High Country Rail Trail

    This 44-kilometre trail hugs the shoreline. Stop along the way at the historic town of Tallangatta, relocated to its current position in the 1950s after its original location was flooded. Cross the lake over the bright red Sandy Creek Bridge. Enjoy a lakeside picnic or go for a swim at Ebden, Ludlow’s or Huon Reserve.

    3. Water sports

    two people watching SUP boarders and a boat our on the water at lake hume
    Dive into water sports on Lake Hume.

    Lake Hume is a popular local spot for boating, fishing, and swimming. Drop a line or dive right into the clear waters.

    Sip and Savour

    1. Dux Albury

    two people sitting at counter drinking wine inside Dux Albury
    Sit down to delicious meals and wine at Dux.

    Those looking for a high-end dining experience need to book a table at Dux Albury in the heart of Albury Wodonga. Sit down for curated wine lists, cocktails and share plates. Think starters like burrata with beetroot, chervil, caper berry and sherry, mains like Wagyu sirloin with Café De Paris, red wine and caramelised onions and all manner of fresh seafood.

    2. Murray Towns Brewing Co.

    people being served lunch at Murray Brewing Co.
    Recharge at Murray Brewing Co.

    Perched on the banks of the river, Murray Towns Brewing Co. has come a long way since two mates started experimenting in their backyard chook shed. With all beer brewed onsite and a sun-drenched beer garden to drink them in, it’s a perfect stop along a bike ride or walk.

    3. Temperance and General

    Step into Albury’s original laneway bar, Temperance and General. Set inside a historic building, but offering a modern vibe, the bar is locally famous for its cocktail list. Stop in before or after dinner for a creative tipple.

    4. BeanStation Cafe

    two people drinking coffee at Bean Station albury wodonga
    Dine on a modern Australian menu.

    Dine on a modern Australian menu, inside the historic Wodonga train station building, dating back to 1873. Pop over in the morning and line up with the locals for great coffee and all-day brekkie, or head over after midday to swap the beans for local wines and Aussie boutique beers.

    5. River Deck Cafe

    waiter holding two dishes at Riverdeck Cafe albury wodonga
    Soak in views and good food at Riverdeck Cafe. (Image: Visit Victoria)

    Another dining destination next to the Murray, the award-winning River Deck Cafe provides a large deck covered in dappled sunlight that makes for the ideal long lunch spot. Here, menus focus on natural, native and local ingredients sourced from regional farmers and producers across Albury Wodonga and surrounds.

    Museums, murals and more

    1. Albury Wodonga Public Art Trail

    Gain a sense of Albury Wodonga’s vibrant arts community while wandering the Public Art Trail. Works range from sculptures and murals to wrapped infrastructure. Be sure to check the council map before you head out, so you don’t miss a thing.

    2. Murray Art Museum Albury (MAMA)

    couple admiring the art at Murray Art Gallery
    Stop into one of the most visited galleries outside of Sydney. (Image: Visit Albury Wodonga)

    MAMA forms the heart of art and culture in Albury Wodonga, some may say the entire Murray region. In fact, it’s one of the most visited galleries outside of Sydney. What makes it so lauded? The museum has earned a reputation for curating innovative, original exhibitions from some of the best contemporary Australian and international artists.

    3. HotHouse Theatre

    Originally built in 1928 as the Butter Factory Theatre, HotHouse Theatre has been a home of performance since 1997. Stop by to see the best of new Australian theatre. Continue to explore unique architecture on the Historic Building Walking Tour of Albury, the perfect way to round out your stay.

    Start planning your Albury Wodonga getaway at visitalburywodonga.com.