The Coalition government is planning to introduce a bill that would make airlines pay compensation to passengers who suffer delays, cancellations, or denied boarding due to the airlines' fault. The bill, known as the "pay on delay" bill, would require the transport minister to make rules prescribing the carriers' obligations and the amount of compensation, based on the duration and severity of the disruption.
The bill is a response to the growing frustration and dissatisfaction of travellers in Australia, who have faced increasing levels of delays and cancellations in recent years. According to the Bureau of Infrastructure, Transport and Regional Economics, in November 2024, 45.3% of flights were cancelled or delayed across the "golden triangle" routes of Sydney, Melbourne, and Brisbane. The Coalition also criticised the claim by Qantas, the dominant airline in the market, that it does not sell tickets to specific flights, but rather a "bundle of rights" that includes alternative options in case of disruptions.
The bill aims to provide clarity and certainty to passengers, and to ensure that they are treated fairly and respectfully by the airlines. The bill would also create incentives for the airlines to improve their performance and reliability, and to avoid unnecessary disruptions. The bill would not apply to delays or cancellations caused by weather, security, or other factors beyond the airlines' control.
The bill is expected to be presented to the parliament on February 26, 2024, and will need the support of the crossbench senators and the opposition Labor party to pass. The Labor party has not yet indicated its position on the bill, but has previously expressed concerns about the lack of consumer protection and transparency in the aviation industry. The government has also announced that it is working on a white paper on the future of aviation in Australia, which will consider the best practices and regulations from other countries.