Fight for flight rights: The government's proposed aviation consumer protection scheme could change the way Aussies fly

The Albanese government has promised Australians a landmark new aviation consumer protection scheme that could change the way we fly.

The proposed scheme would enshrine consumers' rights to refunds, food and accommodation when flights are delayed or cancelled.

But how effective will it be, and how will everyday Aussies benefit?

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Flight Centre Travel Group global leisure chief executive James Kavanagh told 9news.com.au the scheme could give travellers "certainty, better support and fairer solutions for situations out of their control".

Consumer Champion consumer advocate Adam Glezer wasn't as optimistic.

"The only meaningful improvement here is the proposed right to a refund for all cancelled flights," he said.

"COVID-19 should've been a wake-up call, the fact that it's taken the government this long to act speaks volumes."

Have you got a story? Contact reporter Maddison Leach at mleach@nine.com.au

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What is the new aviation consumer protection scheme?

There are currently no national standards governing what passengers are entitled to when flights are delayed or cancelled.

That leaves it up to airlines to decide what, if any, compensation to offer.

Send My Bag chief executive Adam Ewart said Aussie travellers have been getting a "raw deal".

"Right now, if your flight is cancelled or your bag goes missing, you're often left with little more than an apology, a credit note, or in some cases, nothing at all," he told 9news.com.au.

"That's not good enough, especially when Australians are paying some of the highest fares and baggage fees in the world."

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The government's proposed aviation consumer protection scheme will change that.

It will give passengers more rights when flights are disrupted, including prompt re-bookings or refunds, and access to food and accommodation.

An ombudsman scheme will also be introduced to support consumers.

The protections will also require greater accountability from airlines and airports, with a regulator to ensure compliance.

Transport Minister Catherine King said the government is working to "clarify the obligations airlines and airports have to passengers".

"This includes information requirements when you book a flight and check-in, how you should be communicated with and minimum levels of assistance when a flight is disrupted, and how airlines and airports should manage complaints," she said.

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Initial consultations on the design and implementation of the ombudsman scheme were completed at the end of 2024.

Consultations on minimum consumer protections finished in early 2025.

Another consultation on the proposed design and implementation of aviation consumer protections began in early September, with submissions to close this month.

Kavanagh said travellers can expect "on-the-spot assistance" when flights are disrupted and "faster, independent dispute resolution and more transparency from airlines and airports" if the proposed changes are implemented.

Why are new rules for airlines being introduced?

Other nations around the world already have robust consumer protections for travellers impacted by flight disruptions but Australia is "lagging behind".

"The current system leaves the onus on passengers to fight for fair treatment, and outcomes depend on whichever airline you happen to be flying with," Ewart said.

In Europe, the Air Passengers Rights Regulation (EU261) has protected travellers impacted by flight disruptions for 20 years.

Under EU261, passengers are entitled to compensation of up to €600 ($1064) if their flight is delayed by more than three hours or cancelled without sufficient notice.

Airlines are also required to provide meals, hotel accommodation, and rerouting options to affected passengers.

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Closer to home, Thailand recently launched a similar scheme.

It requires airlines to provide meals, accommodation, and cash payments of up to $213 for flights delayed by more than 10 hours.

Protections also cover flight cancellations and denied boarding.

Introducing similar consumer protections in Australia would likely result in fewer airline and airport disputes and greater traveller confidence, with minimal impact on the aviation industry's profitability.

"Similar schemes overseas have definitely lifted confidence in air travel, and the long-term benefit is stronger trust and more people booking flights earlier," Kavanagh said.

Will the new scheme be enough?

Experts have warned the proposed scheme will need to be robust to have a significant impact for consumers.

"Token reforms won't cut it," Ewart said, adding that "Australians deserve better".

"If we stop short of enforceable, transparent, and universal standards, Australia will remain an outlier, lagging behind Europe and Asia when it comes to passenger rights."

Glezer said the proposal falls short of what's needed and predicted the scheme will do "very little" beyond entitling consumers to refunds.

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As it stands, the proposed scheme would entitle consumers to refunds, food and accommodation in the event of flight disruptions but not financial compensation.

"Offering food and drink vouchers as compensation is insulting," Glezer said.

"If someone misses a wedding, funeral, holiday, or critical work event due to an airline's failure, very few people would care if they got filet mignons.

"They rightfully want financial compensation for the significant inconvenience."

Introducing consumer compensation for disrupted flights, like in Europe, would also discourage airlines from cancelling flights when it's in their control.

"There is no need to reinvent the wheel, the gold standard has been handed to us on a platter by the EU," Glezer said.

When will the aviation consumer protection scheme come into effect?

It's unclear when the government's proposed scheme will officially come into effect.

The timeline in the government's consultation notes aims for legislation and implementation across 2025–26.

"Aussies can definitely expect to see changes come into effect within the next year," Kavanagh said.

But Glezer predicted real progress will come at a "snail's pace", even though the issue "should have been addressed years ago".

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