New US air rules granting travellers instant ticket and fee refunds on significant delays and cancellations on all flights to/from and transiting the US came into play on 30 October 2024. When will Australian airline consumer rights follow suit with similar policies?
The U.S. Department of Transportation (DOT) now mandates that all US airline passengers are entitled to an automatic cash refund for flight cancellations or significant schedule changes – without having to request it.
Specifically, passengers will be refunded if their international flight is delayed by more than six hours or if their domestic flight is delayed by more than three hours.
Additionally, airlines must provide refunds if passengers are downgraded to a lower cabin class or if a paid service, such as Wi-Fi fails to be delivered. Passengers experiencing delays with checked baggage will also be entitled to compensation.
What does it mean for Aussie travellers?
Compare Travel Insurance Managing Director Natalie Ball said while it’s a positive development for Aussies travelling with US airlines, Australian airlines are falling short of meeting consumer responsibilities.
“This change will raise awareness about Australian airline consumer rights, especially when flying with international airlines,” she said.
“It also sets a precedent as Australian travellers may begin to expect similar levels of transparency and fairness when flying domestically or with local carriers.
“Airlines must be held accountable for the service they provide – or fail to provide,” she said.
While the US regulations won’t apply to Australian airlines, Ball said the policy shift could pressure them to lift their customer service standards, especially as UK and European carriers have similar regulations.
The introduction of an Aviation Industry Ombuds Scheme and a Charter of Customer Rights would entitle Australian passengers to between $400 and $1,000 for delayed or cancelled flights and follows the UK and European examples.
“Now that US passengers are protected by stronger consumer laws, hopefully Australia will soon follow suit,” she said.
What are the current Australian airline consumer rights?
Australians are entitled to compensation from their airline when a flight is delayed due to factors within the airline’s control, including crew shortages or mechanical issues.
Ball said travellers should know their Australian airline consumer rights when impacted by airline delays or cancellations.
“All flights come with automatic consumer guarantees, no matter how cheap your fare is. If your flight has been delayed or cancelled outside a reasonable timeframe, and the airline is at fault, you are within your rights to seek a refund, credit, and/or cover for all reasonable expenses,” she said.
Why you need travel insurance
For delays caused by reasons outside the airline’s control, such as bad weather or civil unrest, carriers may not offer compensation. In these cases, Ball said it’s important to have comprehensive travel insurance to cover unexpected expenses and keep documentation if you need make a claim.
“If your flight has been delayed or cancelled, you will need written proof from your airline to support a travel insurance claim along with advice on whether they are providing compensation,” she said.
“In the event of a delay, keep all receipts for any purchases made. Without proof of your expenses, you may not be eligible to claim back your costs.”
