Australia’s airlines are raising alarms over the government’s proposed aviation consumer protections, set to become law this year, which they argue are “unworkable” and could lead to increased ticket prices for passengers. The reforms aim to establish minimum service standards and remedies for late and cancelled flights, but airlines claim the new framework is overly complex and duplicates existing consumer protections enforced by the Australian Competition & Consumer Commission (ACCC).
The proposed legislation, expected to be introduced in the first half of 2026, will create an aviation consumer protections charter detailing remedies such as food vouchers and accommodation for passengers affected by delays or cancellations within the airline’s control. These standards will be enforced by a new aviation consumer protection authority, with an independent ombudsman system handling unresolved consumer complaints.
Industry Concerns Over Regulatory Overlap
Graeme Samuel, chairman of the airline industry group A4ANZ, criticized the proposed regulations as “unworkable” and “prescriptive,” arguing that the creation of a new agency would effectively duplicate the ACCC’s role. “What we’ve got is an unworkable, complex and prescriptive set of regulations,” Samuel told the media.
According to the proposed framework, the new regulator would be funded by a levy on the aviation industry. Samuel warned that these costs would ultimately be passed on to passengers. “Don’t think that you’re imposing costs on the airlines,” he said. “These are costs on the passengers because that’s how it happens.”
Government’s Rationale for Reform
The government has defended the reforms, with Transport Minister Catherine King stating that the changes are necessary to ensure airlines provide minimum service levels when things go wrong. “Airlines policing themselves is also not working,” King emphasized, adding that the ombudsman role is designed to deliver outcomes not achieved by the industry-run Airline Customer Advocate.
The government released its Aviation White Paper in 2024 in response to consumer dissatisfaction with post-COVID airline service levels, which saw frequent cancellations and diversions. King noted that the government reviewed aviation consumer laws in Europe and Canada before deciding on Australia’s approach, suggesting the new ombudsman would be modeled after the Telecommunications Industry Ombudsman scheme.
Stakeholder Reactions and Future Implications
While the airline industry expresses concerns, consumer advocacy groups like CHOICE view the reforms as a positive step. Andy Kelly, CHOICE’s campaigns and communications director, said the reforms would “complement” existing Australian Consumer Law by providing clearer rights for re-booking or refunds.
However, some stakeholders fear the reforms may not adequately protect consumers in a market dominated by two major airlines, Qantas Group and Virgin Australia. Adam Glezer of Consumer Champion criticized the lack of substantial cash penalties, arguing that the reforms might only result in “slightly higher valued vouchers” for passengers.
Labor senator Tony Sheldon supported the reforms for setting “clear, enforceable standards” but emphasized the need for airlines to invest in their workforce to reduce cancellations and delays. “If airline companies want fewer cancellations and delays, they need to get their act together and properly invest in their workforce,” Sheldon stated.
Looking Ahead
As the legislation moves closer to becoming law, the debate over its potential impact continues. While the government aims to enhance consumer protections, the airline industry warns of increased costs and regulatory overlap. The outcome of this legislative push will likely shape the future of aviation consumer rights in Australia, with significant implications for both airlines and passengers.
For now, the aviation sector and consumer advocates await further developments as the government finalizes its approach to these contentious reforms.
