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The federal government will introduce a national passenger protection scheme requiring airlines to compensate travelers for flight delays and cancellations, with Transport Minister Catherine King announcing the policy aims to establish minimum service standards across Australia's aviation sector.
Assistant Minister Patrick Gorman told Sky News Monday that the scheme will guarantee passengers receive refunds, food and accommodation when airlines fail to deliver promised services, addressing widespread consumer complaints about post-COVID aviation standards.
"What we really want, Tom, is that when people pay for an airline ticket, often to get to really important occasions, it might be grandparents going to see a new grandchild or people getting to a wedding or just going and enjoying this beautiful country of ours. When people pay for a ticket, we want them to get the service they paid for," Gorman said during the Sky News Afternoon Agenda panel discussion.
The announcement follows an aviation white paper finding that airlines are not meeting pre-pandemic service levels, prompting government intervention to protect consumer rights.
King said the scheme aims to lift passenger standards while acknowledging implementation costs.
"We want to see a lift in standards for passengers across the aviation sector. There have been some improvements but we know there's a long way to go and really this is what this protection scheme is designed to do," King said. "Certainly there will be some costs involved in the administration of the scheme. We've tried to really balance those."
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The policy requires airlines to provide food and accommodation for overnight delays while establishing consistent industry-wide standards for passenger treatment during disruptions.
"That means providing food, accommodation if it's an overnight stay, and also having a minimum standard across the industry so that customers know what they're going to get," Gorman said.
He emphasized the scheme's potential to reduce airport tensions when travel plans collapse unexpectedly.
"I think we've probably all seen moments that airports where things don't go quite to plan, it'll hopefully take a bit of the tension out of the airports as well where, you know, those frontline workers are having to deal with people who are having their plans destroyed at the last minute," Gorman said.
The government is consulting on compensation triggers, with debate emerging over whether airlines bear responsibility for all disruptions or only those within their control.
Gorman indicated airlines would maintain obligations to stranded passengers regardless of delay causes, citing scenarios involving cancelled flights at Perth Airport.
"I think there's some instances, Tom, where regardless of what the reason is, airlines have a responsibility. Now, we're out consulting on that at the moment. The consultations close in a month's time," he said.
"But if you've got people stranded at Perth Airport just on the edge of my electorate late at night because a flight has been cancelled, then that airline has some obligations to those passengers," Gorman said.
The minister stressed safety considerations would never be compromised while ensuring rapid passenger rebooking or refunding for cancelled flights.
"We'll never compromise on airline safety, if that's what you're getting at. We'll never compromise on that," Gorman told panel host Tom Connell when pressed about mechanical failure scenarios.
"All of the things that you outlined, Tom, are the things that regularly happen in the aviation industry. You do have, obviously, very good safety regulations. You do have mechanical needs for aircraft, sometimes crew challenges and sometimes extreme weather events," he said.
Former Liberal MP Jason Falinski expressed support for consumer protection principles while criticizing existing aviation regulation levels.
"What Patrick is advocating here is, I think, worthy and something that all consumers would be in favour of. If you've been inconvenienced through no fault of your own, you would expect the airline to make sure that they make good," Falinski said.
However, he argued the government should address regulatory costs before adding new requirements to what he described as an over-regulated industry.
"We already have one of the most over-regulated aviation industries anywhere in the world. That's mostly due to the way that CASA administers our airspace," Falinski said.
"But there's a lot the government can do before it adds even more costs to one of the most expensive air systems in the world by getting CASA to actually behave in a manner and form that's reasonable and sensible," he said.
The panel discussion also addressed ongoing Liberal Party tensions over Indigenous Affairs Senator Jacinta Price's comments about Indian Australian voting patterns, with Falinski calling for an apology.
"Yeah, look, I think that she does need to actually say sorry. I think that what she said was really unhelpful in terms of what the Liberal Party is trying to achieve in reaching out to people," Falinski said.
He distinguished between immigration policy concerns and inappropriate targeting of migrant communities.
"While immigration at the levels that they are at the moment are a massive problem in Australia, it's not the cause of the problem that we are facing in Australia. The reason that high levels of immigration are causing such a massive problem is because of the supply-side constraints that we've put on in the economy," Falinski said.
"But to blame migrants for what are policy faults emanating out of our federal and state parliaments and, frankly, being administered by a lot of NIMBY local councils is really unfair and unfortunate," he said.
Gorman defended Prime Minister Anthony Albanese's comments about "good people" attending recent anti-migration rallies, acknowledging both legitimate concerns and extremist elements.
"I recognise, I mean, there was 10,000 people who attended the rally in my electorate of Perth, just down the road from where I'm sitting right now. Now, I recognise that there were some there who hold extreme abhorrent views that would disgust most Australians," Gorman said.
"But I also recognise there were people at those rallies who were just seeking to have their voice heard and put their view forward. Now, that doesn't mean that I agree with everything they said, but I recognise that we're all Australians, Tom," he said.
The discussion extended to Australia's tobacco policy crisis, with Falinski criticizing high taxation levels for creating black market conditions leading to criminal violence.
"What we have done, once again, we have one of the most complex, unfair tax systems in the world because we keep trying to run social policy through our tax system. So the result is now that we have created a massive black market for cigarettes that is fuelling criminal behaviour in most of our major cities," Falinski said.
He argued current policies have achieved opposite intended outcomes through excessive taxation.
"It has achieved the opposite of what it was meant to achieve. We need to stop using our tax system for social policy and we need to get back to dealing with this as a health issue," Falinski said.
Gorman defended government enforcement efforts, citing $157 million in additional funding for law enforcement agencies to combat illegal tobacco trade.
"What we are doing is investing this year $157 million to support our law enforcement agencies, Border Force and the rest, to act on this at the border and to do the important detailed work that they do in Australia," he said.
The minister emphasized the focus on preventing illegal activity rather than adjusting taxation levels.
"The tax settings for tobacco have been longstanding across governments of Labor and Liberal National for many, many years. What we want to say is prevention. Prevention of an illegal activity," Gorman said.
He linked tobacco enforcement to broader health policy objectives, including vaping restrictions.
"The other work that's been done, including by Minister Mark Butler, to make sure we crack down on vapes to stop the next generation of vapors and smokers. That's also what this is about. It's about health policy and doing what's right for these other people," Gorman said.
The airline compensation scheme consultation period runs for one month, with implementation timelines and specific compensation amounts yet to be finalized.
Industry response to the proposed regulations will likely focus on cost implications and operational requirements for airlines already facing post-pandemic recovery challenges.
Consumer advocacy groups have long demanded stronger passenger protections, pointing to European and American compensation models as potential frameworks for Australian adoption.
The aviation sector employs thousands of Australians while serving as critical infrastructure for domestic connectivity across the continent's vast distances.
Government intervention in airline operations reflects growing political pressure to address consumer complaints about service deterioration since COVID-19 border reopenings.
The policy announcement comes amid broader cost-of-living concerns affecting Australian households, with travel expenses representing significant budget items for many families.
Airlines will likely engage heavily in the consultation process, seeking to minimize regulatory burden while maintaining operational flexibility.
The scheme's success will depend on enforcement mechanisms and industry compliance with new compensation requirements.
Parliamentary passage of enabling legislation will be required before implementation, with crossbench senators potentially influencing final policy details.
Consumer groups are expected to strongly support the initiative while pushing for comprehensive coverage and meaningful compensation levels.
The aviation industry's post-pandemic recovery continues facing challenges including workforce shortages, supply chain disruptions and changing travel patterns.
Government regulation of airline services reflects international trends toward stronger passenger protection following widespread service disruptions during recent years.
Implementation timelines will need coordination between federal agencies, state authorities and airline operators to ensure smooth policy transition.
The compensation scheme represents significant regulatory expansion in Australia's aviation sector, with potential implications for ticket pricing and service delivery.
Public consultation feedback will inform final policy design, with stakeholder input crucial for balancing consumer protection and industry viability concerns.
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