Investigation launched into disparities in consumer protections between Australia and EU for Virgin and Qantas
Nationals Senator Bridget McKenzie emphasized that US and EU passengers have more protection than their Australian counterparts.
Executives from major airlines Virgin and Qantas faced questioning regarding the disparity in protections for Australian flight passengers compared to those in the United States and the EU.
In August 2024, the Labor government introduced the Aviation White Paper, outlining its vision for the aviation sector up to 2050.
The Charter establishes a foundation for “prompt and equitable remedies and support” for passengers affected by delays and cancellations.
These rights include receiving updates on flight status, the choice to cancel with a full refund, assistance with rebooking alternative flights without fees, and provisions for meals and accommodations during delays.
However, unlike the EU, there is no compensation scheme in place.
EU’s Compensation Scheme
In 2004, the EU Parliament enacted the Air Passengers Rights Regulation 2004 to set standards for compensating and assisting passengers in case of flight delays or cancellations.
While US passengers are not automatically compensated for delays or cancellations, regulations introduced by the Biden administration mandate airlines to provide automatic refunds.
A recent survey by Insure&Go, a travel insurance provider, revealed that Australian passengers are most concerned about flight cancellations and delays.
Approximately 76% of respondents identified cancellations and delays as the primary risk for domestic travel in 2025, followed by extreme weather events and luggage loss.
Nationals Senator Questions Airlines
During a recent parliamentary hearing, Nationals Senator Bridget McKenzie grilled Virgin Australia and Qantas executives about why Australian consumers receive less protection than those in the US and EU.
Stephen Beckett, a Virgin Australia general manager, stressed the importance of consumer protection regardless of the location of travel.
In response to McKenzie’s concerns, Qantas Domestic CEO Markus Svensson expressed skepticism about the effectiveness of compensation schemes in improving customer protection.
Existing Law Framework Undermines Consumers’ Rights: Lawyer Alliance
Victoria Roy, chair of the Australian Lawyers Alliance’s Travel Law Special Interest Group, raised concerns about the lack of a specific framework in Australia for passenger rights.
Roy highlighted the complexity of the Australian Consumer Law and suggested the parliament consider enacting simpler legislation to address these issues.
