Australian Airlines Face Scrutiny Over Passenger Protection Legislation
Airline executives, including from Qantas and Virgin Australia, testify at a parliamentary inquiry focused on consumer protections amid ongoing flight cancellations.
A parliamentary inquiry in Australia is currently examining the proposed Airline Passenger Protections ‘Pay on Delay’ bill, with significant focus on the practices of major airlines such as Qantas and Virgin Australia.
The inquiry commenced with testimony from Qantas Domestic CEO Markus Svensson, who defended the airline's operations amidst criticism from Shadow Minister for Transport Bridget McKenzie.
During her inquiry, McKenzie highlighted Qantas’s previous admissions of breaches of Australian Consumer Law, particularly its practice of selling tickets for flights that were later cancelled.
The inquiry raised questions about consumer trust concerning the voluntary policies airlines adopt for passenger protections, following allegations that Qantas had misled customers.
Senator McKenzie emphasized the necessity of the proposed airline protection bill, advocating for mandatory compensation for passengers subjected to delays or cancellations.
Inquiries were directed at both Qantas and Virgin Australia representatives regarding the absence of a penalty system for consumer protections related to flight disruptions.
Virgin Australia's Government and Industry Affairs General Manager, Stephen Beckett, confirmed that no mandatory compensation scheme exists, a statement echoed by Svensson from Qantas.
During the hearing, consumer advocates were also called to provide testimony.
Adam Glezer from Consumer Champion shared experiences of consumers owed considerable amounts in flight credits due to cancelled flights, attributing the lack of resolution to the absence of effective legislation.
Furthermore, the advocacy organization Choice, represented by CEO Ashley De Silva, remarked on the proposed Aviation Industry Ombuds Scheme, indicating its importance for creating a balanced representation of consumer and industry interests and ensuring the capacity for binding decisions within the ombudsman framework.
The government’s draft Aviation Customer Rights Charter was discussed, with advocates expressing mixed feelings about its clarity and comprehensiveness.
Officials from the Department of Infrastructure and Transport indicated that they are still gathering stakeholder views to refine the charter.
They further mentioned that details regarding enforcement mechanisms and penalties related to the incoming regulations are yet to be finalized.
A report summarizing the findings from the inquiry on the Airline Passenger Protections Bill is slated for release next week.
The inquiry commenced with testimony from Qantas Domestic CEO Markus Svensson, who defended the airline's operations amidst criticism from Shadow Minister for Transport Bridget McKenzie.
During her inquiry, McKenzie highlighted Qantas’s previous admissions of breaches of Australian Consumer Law, particularly its practice of selling tickets for flights that were later cancelled.
The inquiry raised questions about consumer trust concerning the voluntary policies airlines adopt for passenger protections, following allegations that Qantas had misled customers.
Senator McKenzie emphasized the necessity of the proposed airline protection bill, advocating for mandatory compensation for passengers subjected to delays or cancellations.
Inquiries were directed at both Qantas and Virgin Australia representatives regarding the absence of a penalty system for consumer protections related to flight disruptions.
Virgin Australia's Government and Industry Affairs General Manager, Stephen Beckett, confirmed that no mandatory compensation scheme exists, a statement echoed by Svensson from Qantas.
During the hearing, consumer advocates were also called to provide testimony.
Adam Glezer from Consumer Champion shared experiences of consumers owed considerable amounts in flight credits due to cancelled flights, attributing the lack of resolution to the absence of effective legislation.
Furthermore, the advocacy organization Choice, represented by CEO Ashley De Silva, remarked on the proposed Aviation Industry Ombuds Scheme, indicating its importance for creating a balanced representation of consumer and industry interests and ensuring the capacity for binding decisions within the ombudsman framework.
The government’s draft Aviation Customer Rights Charter was discussed, with advocates expressing mixed feelings about its clarity and comprehensiveness.
Officials from the Department of Infrastructure and Transport indicated that they are still gathering stakeholder views to refine the charter.
They further mentioned that details regarding enforcement mechanisms and penalties related to the incoming regulations are yet to be finalized.
A report summarizing the findings from the inquiry on the Airline Passenger Protections Bill is slated for release next week.
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