Qantas, Virgin oppose ‘pay on delay’ for customers

Qantas has warned a Senate committee that any passenger refund law brought into Australia could result in higher prices for tickets. Qantas domestic CEO Markus Svensson told an inquiry into passenger rights on Monday that an European Union-style compensation-based scheme would not help consumers in terms of reduced delays or cancellations. “Compensation-based regimes such as those in Europe and Canada have shown these schemes do not deliver better outcomes for consumers in terms of reduced delays and cancellations, and they increase the cost of travel,” he said. “The potential effect on fares, implications for low-cost carriers and the likely negative effect on economically marginal routes – particularly on Australia’s regional network – should all be closely considered.” Svensson said that when delays or cancellations were “within our control”, Qantas already provided a refund, rebooking or any other remedies required by law. The inquiry into the airline passenger protections bill, designed to ensure “concrete protections” for passengers, follows a series of Qantas scandals that have infuriated the travelling public. In 2024, Qantas was ordered to pay $120m in fines and compensation for booking customers on already scrapped services. Qantas also forced passengers to accept flight credits for pandemic disruptions rather than the refunds they were entitled to. The so-called “pay on delay” legislation, introduced last year by the Coalition and separate from a planned Ombuds Scheme supported by the Albanese government, would establish penalties for Australia’s airlines in the event of flight delays, cancellations or denials of boarding.<br/>