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Australia’s peak airline body has pushed back on the Federal Government’s proposed consumer protection scheme, labelling it “unworkable” and “complex”.
In its submission to the draft plan, Airlines for Australia and New Zealand (A4ANZ) said it had “significant concerns” about the proposed legislation, including the Draft Aviation Consumer Protections Charter, as reported by the Sydney Morning Herald.
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“The Charter, as currently drafted, will make Australia a less attractive destination for new international entrants or international airlines looking to grow routes or frequency,” the submission reads.
“It also represents a major practical, operational, and financial challenge for airlines, in particular low cost carriers (LCCs) and regional airlines, adding increased financial burden on already marginal regional routes, and increases the barrier for new entrants to enter the market.
“The result of this will be upward pressure on airfares, more limited consumer choice, and outcomes at odds with the Government’s vision for a sustainable and competitive aviation market.”
The draft proposal released last year, which can be viewed online, will hold airlines to “minimum standards” of consumer protection, according to Transport Minister Catherine King, which would include prompt refunds, accommodation, transport, and meal vouchers when needed.
“The Consumer Charter basically will say this is what you should expect as a passenger in terms of rebooking time, quick and prompt refunds, accommodation, transport if you need it or a meal voucher if that’s what you need, and this is the sort of things and the timeliness with which you can expect it,” the Minister said last year.
While it would not create a European-style “pay-on-delay” requirement, the current plan would establish a consumer protection authority for aviation as well as a separate independent ombuds scheme, with funding coming from levies on the aviation sector.
According to Graeme Samuels, chair of A4ANZ, this would essentially double up existing protections under consumer law and potentially result in the increased costs being passed on to passengers.
“What we’ve got is an unworkable, complex, and prescriptive set of regulations, with this entirely new agency to be created, effectively duplicating the role of the ACCC,” he said.
“The complexity of the proposed framework with a charter and an ombud undermines the productivity of the sector and the economy.
“The concept of creating another regulator, the Aviation Consumer Protection Authority, is totally contradictory to everything that Treasurer Chalmers has been advocating in terms of competition policy reform and productivity reform.
“He is saying we don’t want more unnecessary regulation and we don’t want more costs to be imposed on business by regulation.”
In a statement, the Transport Minister told Australian Aviation that the Federal Government has “heard from Australians about what is and what is not working for them when travelling” through the consultation process.
“Airlines policing themselves is also not working. This is why the Albanese Government is committed to delivering Australian-first aviation consumer protections that guarantees passengers minimum levels of service they are entitled to when things go wrong,” said Minister King.
“It is also clear that the industry-run Airline Customer Advocate has not delivered the outcomes passengers expect, which is why we are creating a new independent ombudsman to hear and investigate complaints.”
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Greg Timbs
says:Insurance also increases the cost of living. But try having an accident.