Flight delays and refunds? Australia’s new aviation watchdog will help

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Airlines will soon be required to pay compensation for delayed flights.

On Monday 26 August 2024, the Federal Government released their highly anticipated Aviation White Paper outlining the path forward for Australia’s aviation sector. The White Paper includes 56 policies setting the direction for the industry, including the establishment of an independent Aviation Industry Ombuds Scheme and an Aviation Customer Rights Charter.

These initiatives will set out clear guidelines for how airlines must handle issues such as flight cancellations, delays and compensation. Here’s what we know so far.

What is the Aviation Industry Ombuds Scheme?

Replacing the Airline Customer Advocate, the new Aviation Industry Ombuds Scheme will cover both domestic and international airlines operating in Australia, as well as airports. It aims to ensure greater accountability from airlines, especially concerning flight delays, cancellations, refunds and compensation.

What will the Aviation Industry Ombudsperson do?

The Aviation Industry Ombudsperson will have the power to oversee and resolve customer complaints related to airlines and airports, potentially forcing airlines to compensate customers for delayed or cancelled flights. They will ensure that refunds are processed promptly where applicable.

In addition to handling complaints, the ombudsperson will publish reports on airline and airport conduct and make policy recommendations to the Australian Government to further protect consumer rights.

Aerial shot of planes at an airport
The Aviation Industry Ombuds Scheme will ensure greater airline accountability. (Image: Skyler Smith)

Why is the Aviation Industry Ombudsperson being introduced?

The Aviation Industry Ombudsperson is being introduced in response to growing frustration from Australian travellers regarding poor customer service, lengthy delays and difficulties obtaining refunds or compensation from airlines. It comes after increased scrutiny of airline practices and a push for stronger consumer protections.

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What is the Aviation Customer Rights Charter?

The Aviation Customer Rights Charter, developed alongside the ombudsman, will offer a clear and accessible outline of passengers’ entitlements. This includes guidelines on when passengers are entitled to cash refunds, compensation for delays and cancellations, as well as outlining airlines’ obligations in other areas, like lost luggage and customer service standards they must meet. The goal is to create consistent and enforceable standards.

Plane on tarmac at sunset
The Aviation Customer Rights Charter will offer a clear and accessible outline of passengers’ entitlements. (Image: Rocker Sta)

Will it have an impact on domestic flight prices?

The immediate impact on domestic flight prices is uncertain, though airlines may pass the cost of compliance onto passengers. However, increased accountability could lead to a more reliable aviation industry, ultimately benefitting passengers by reducing the indirect costs of travel disruptions.

Will it improve airline performance?

Yes, the introduction of the Aviation Industry Ombudsperson is expected to improve airline performance by encouraging compliance with stricter service standards and increasing transparency in how airlines handle delays and cancellations.

Plane wing above the clouds
Domestic flight prices may increase. (Image: Tom Barrett)

How can passengers claim compensation?

Passengers will be able to lodge complaints through a streamlined process overseen by the ombudsperson. They will mediate disputes and enforce compensation when applicable. Further details on the claims process will be made available once the system is fully operational.

When will it be implemented?

The Aviation Industry Ombuds Scheme will be set up to resolve disputes between airlines and passengers by 2026.

Plane engine as aircraft flies above clouds
There has been growing frustration from Australian travellers regarding the aviation industry. (Image: Emiel Molenaa)

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What does this mean for airlines?

Airlines will face stricter customer service standards and could be required to compensate passengers for cancellations, delays or other service failures. They will also be required to “show cause" for why flights are delayed or cancelled. Additionally, the Government will review its travel purchasing policies to ensure fairness and transparency in airline booking practices.

“We will also increase the transparency of airline performance, with more data on performance and competition to be published by the Bureau of Infrastructure and Transport Research Economics (BITRE)," federal transport minister Catherine King said.

What are the airlines saying?

“We welcome the release of the Aviation White Paper and the opportunities it presents to improve regulatory and policy settings, ensuring all Australians continue to benefit from a competitive and sustainable aviation industry in the years ahead," a Virgin Australia spokesperson told Australian Traveller.

“We are closely reviewing the policy position on various topics and we look forward to working collaboratively with the Government and other industry participants during this process."

How does it work in the rest of the world?

In the European Union, aviation ombudsmen and strong consumer protection laws, such as the EU’s Regulation 261/2004, are already in place. This regulation guarantees compensation for long delays and cancellations unless caused by extraordinary circumstances.

In the United States, there is no standalone aviation ombudsman. Instead, airline disputes are primarily handled through federal agencies like the Department of Transportation (DOT), which regulates airline consumer protection, with rules on compensation for overbooking, mishandled baggage and tarmac delays. However, compensation for flight delays or cancellations is not as robust as in Europe, with airlines mostly determining their own policies.

Person looking at flight schedule in airport
Airlines will be required to “show cause" for why flights are delayed or cancelled. (Image: Erik Odiin)

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Emily Murphy
Emily Murphy is Australian Traveller's Email & Social Editor, and in her time at the company she has been instrumental in shaping its social media and email presence, and crafting compelling narratives that inspire others to explore Australia's vast landscapes. Her previous role was a journalist at Prime Creative Media and before that she was freelancing in publishing, content creation and digital marketing. When she's not creating scroll-stopping travel content, Em is a devoted 'bun mum' and enjoys spending her spare time by the sea, reading, binge-watching a good TV show and exploring Sydney's vibrant dining scene. Next on her Aussie travel wish list? Tasmania and The Kimberley.
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8 insider experiences to discover the offbeat in Newcastle

    Carla Grossetti Carla Grossetti
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    Discover vibrant culture and creativity, gorgeous nature spots and more in lively Newcastle.

    Newcastle/Muloobinba has a lot going for it beyond its big skies and beautiful beaches. The city’s creative types are now heading downtown, taking over and transforming warehouses and terraces to offer a more alternative vibe. From its nightlife to secret swimming spots, art to architecture, here’s our insider’s guide to Newcastle in New South Wales.

    1. Learn to sail on Newcastle Harbour

    The harbour has always shaped Newcastle, so it seems like the most obvious place to start your weekend. Newcastle Cruising Yacht Club offers a range of programs that provide instruction for both novice and experienced sailors. This is an inspired classroom that sets off past the Honeysuckle Foreshore up the Hunter River, with views towards a seemingly infinite vista of blue stretching to the horizon. It’s the perfect way to savour your time by the sea. Other water activities include surfing, swimming in one of the secret ocean baths or whale-watching with CoastXP.

    Aerial view of Newcastle Harbour.
    Join Newcastle Cruising Yacht Club’s programs. (Image: City of Newcastle)

    2. Underground jazz scene

    Follow the lively sound of the saxophone bubbling up to find The Underground. The popular basement-level bar, with its dim lighting and speakeasy aesthetic, schedules live jazz performances every Tuesday and Thursday. Newcastle is known around the country for supporting live music and this late-night New York-style jazz bar is, like the city itself, both approachable and sophisticated. For fans of live music, Queen’s Wharf Hotel, King Street Newcastle, Mad Poet and The Lucky Hotel are all popular pubs for their roster of live music.

     

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    3. The city as a canvas   

    The streets of Newcastle present like an outdoor art gallery, adding beauty to the everyday with large-scale works by artists such as Fintan Magee, Inari Meyers, Tom Henderson and Sophia Flegg. Hire a Flash E-bike and pedal around the streets to find treasures such as Bronte Naylor’s Mirror Ocean in Civic Square or Sky & Ocean at South Newcastle Beach Skate Park. You can also join Newy Tour Co.’s Discover Newcastle tour to explore city highlights, architectural gems and street art with an expert guide.

    Friends take in Newcastle Street Art.
    Admire stunning works of art displayed all around you. (Image: Destination NSW)

    4. An artist’s view of Newcastle

    There’s a real sense of optimism around Newcastle, stemming from its many grassroots art galleries and organisations. The city is home to an eclectic array of artists who gravitate toward different mediums; see their works on show at independent galleries such as The Lock-Up, which operated as a police station from 1861 until 1982, and Lighthouse Arts Newcastle in the light-filled cottages on Nobbys Head/Whibayganba. Stop by The Creator Incubator to see the Little and Big gallery spaces. Newcastle Art Gallery will soon reopen after a recent expansion, so keep an eye out.

    5. Newcastle after dark

    The small bars confetti’d around Newcastle are a sign of the times. Visitors to the compact city will find a concentration of bars within a small radius, all of which are within easy walking distance or accessible via the light rail. The after-dark experience, which includes theatre and live music, is designed for visitors who are in search of the offbeat and want to celebrate the city’s creativity.  Whether you’re visiting for business or pleasure, the bars that dot most neighbourhoods will tempt you with everything from happy hour to their alt attitude. 

    A bartender expertly crafting a drink, with a stunning library of spirits in the background.
    Enjoy a night out at a lively bar. (Image: City of Newcastle)

    6. Indulge in great gastronomy

    Newcastle’s proximity to the Hunter Valley has helped establish it as a sophisticated getaway for gourmands with a passion for provenance. Dining options in the city are diverse, with everything from casual cafes to cantina-style Mexican eateries such as Antojitos, through to fine diners such as Flotilla and Jana Restaurant & Bar at QT Newcastle. Visit during Newcastle Food Month to get a snapshot of the local culinary scene – you can take note of the many world-class restaurants and cafes that warrant a return visit. Humbug, Peregrin and Bistro Penny should also be on your radar.

    The dining area at Flotilla in Newcastle NSW.
    Savour a world-class dining experience at Flotilla. (Image: Flotilla)

    7. Crystalbrook Kingsley

    Crystalbrook Kingsley is another great example of Newcastle’s new wow factor.  Staying at the hotel – in the heart of the cultural centre – makes exploring a breeze, with vintage bikes for guests who want to check out the city streets on two wheels. The design-savvy Crystalbrook Collection reimagined the Roundhouse building while adhering to its ethos of sustainable luxury. The hotel is also a magnet for foodies, with the rooftop Roundhouse restaurant and cocktail bar, Romberg’s, two of the best spots in the city for wining and dining.

    The Roundhouse by Crystalbrook Collection.
    Step into the reworked Roundhouse by Crystalbrook. (Image: Crystalbrook Kingsley)

    8. Newcastle’s creative side on show

    Save the date for New Annual, a festival of art, music and ideas from 26 September – 5 October. The program is jam-packed with 10 days of art, culture and creativity. This year’s festival will celebrate the power art has to connect people. Expect to see a diverse program including music, theatre, workshops, and performances in iconic Newcastle locations. Visitors will find a concentration of events within a small radius, all of which are within easy walking distance or accessible via the light rail.

    Dancers performing gracefully, accompanied by a live orchestra.
    Celebrate migration, community and belonging at New Annual.

    Plan your next trip to offbeat Newcastle.