Qantas rejects calls for passenger compensation scheme, arguing it will jack up airfares

Qantas has knocked back calls for a passenger compensation scheme for delayed and cancelled flights, arguing it would force airlines to jack up their fares and threaten the viability of some routes. The airline has released its submission to the federal government's aviation green paper, acknowledging its recent performance had been "unacceptable" and left passengers disappointed and frustrated. But Qantas insisted a compensation scheme would do little to improve the situation, and may make air travel more difficult. "The Qantas Group considers that the introduction of mandatory compensation would be a backwards step that will do nothing to reduce delays and cancellations, will increase confusion and complaints and materially increase costs, ultimately leading to higher fares and potentially compromising the viability of marginal routes," the airline said in its submission. A compensation scheme has been floated by the Australian Competition and Consumer Commission (ACCC) and independent MP Monique Ryan, citing a system in place across the European Union.<br/>