Australian airline passengers could soon receive compensation for delays and cancellations

Australian airlines could soon be forced to pay cash compensation to passengers whose flights are delayed or cancelled as the government faces mounting calls to introduce laws to rein in carriers arbitrarily changing their schedules. The Australian Competition and Consumer Commission, consumer advocate Choice and the Australian Lawyers Alliance have all separately raised the prospect of a compensation scheme as the government considers its aviation white paper. Advocates of such a scheme claim local laws are “lagging behind the rest of the world”, pointing to the EU’s air passenger compensation laws as an ideal model for Australia to consider. In Europe, passengers whose flights arrive at their final destination with a delay of more than three hours are entitled to between E250 and E600 each, depending on the distance of the trip. Longer delays mean passengers can opt to be refunded, which must be repaid to them within seven days. If a delay means a passenger misses a connecting flight on the same reservation, the airline must also pay compensation. The compensation rules do not apply in situations where extraordinary circumstances, such as poor weather, caused the delays. In Australia, different airlines offer varying levels of compensation, and while the Australian Consumer Law (ACL) applies, there are no aviation-specific regulations forcing a minimum amount or timeframe for compensation.<br/>