The Federal Government has introduced new aviation consumer protection laws, setting out a framework that would establish minimum service standards for airlines and airports and shift how complaints are handled when travel plans go wrong.
Tabled in Parliament this week by Transport Minister Catherine King, the legislation follows ongoing scrutiny of disruption handling and passenger rights, particularly during periods of global instability.
The proposed reforms move complaint handling beyond airline-managed processes, introducing independent oversight and formal enforcement mechanisms.
What changes under the proposed laws?
The legislation includes the creation of an Aviation Consumer Ombudsperson, an independent body that will work with travellers, airlines and airports to resolve complaints.
An Aviation Consumer Protections Charter will also be developed, setting minimum standards expected across airline and airport services. The Charter is positioned as an Australian-first framework for defining baseline consumer protections in aviation.
To support this, an Aviation Consumer Protection Authority will be established within the Department of Infrastructure, with responsibility for enforcing compliance with those standards.
A separate Aircraft Noise Ombudsperson will review how complaints related to aircraft noise are handled by Airservices Australia and the Department of Defence.
Why the reforms are being introduced
The Government has pointed to recent international events, including the conflict in the Middle East, as examples of how quickly travel can be disrupted and the level of uncertainty passengers can face.
While on-time performance has improved since the pandemic, the current system relies on voluntary arrangements, with airlines managing escalated complaints internally.
Consumer groups have raised concerns about consistency in outcomes under that model.
Industry response and cost considerations
Airlines for Australia and New Zealand has raised concerns about the complexity of the proposed framework and the operational impact of additional compliance requirements.
According to reporting by Australian Aviation, the industry body has indicated that more prescriptive consumer protections could increase costs, which may flow through to airfares.
Karryon has contacted Airlines for Australia and New Zealand for comment.
What happens next
The legislation will progress through Parliament, with further detail to come on how the Aviation Consumer Protections Charter will be defined and implemented.
Airlines and airports will need to align processes with the new standards once finalised.
The news follows the Reserve Bank of Australia’s decision to scrap credit and debit card surcharges yesterday, which saw the Australian Travel Industry Association warning the change will shift costs onto travel businesses, push up travel prices and hand a major win to banks and card schemes.
KARRYON UNPACKS: The Government has introduced legislation to establish enforceable aviation consumer protection standards, including an independent ombudsperson and compliance authority.
Karryon is in discussions with Airlines for Australia and New Zealand and will update this story with industry response.
