McKenzie told a Senate committee hearing on Monday the pay on delay scheme is needed as the Australian public has lost trust in Virgin Australia and Qantas.

The airline was found to have misled consumers by selling tickets to already cancelled flights, that were labelled as ‘ghost flights’.

‘Nobody wants to cancel a flight’

“Nobody wants to cancel a flight, it’s not good for the customer, it’s not good for operations,” he said.

While Beckett did not explicitly endorse or oppose the bill, Svensson said Qantas is “not supportive of any compensation-based scheme”.

‘We’d like to see regional airlines excluded’

He, however, expressed support for an exemption to “protect services” in regional Australia, noting that delays can be beyond any airline’s control, such as issues with the airport, weather, or even passengers.

Consumer laws are an ’embarrassment’

“Something has to change because we’re an embarrassment to other jurisdictions.”

Mandatory compensation schemes for flyers exist in regions like Europe and Canada, where there are minimum guidelines for refunds and compensation for flight delays and cancellations.

Would flights get more expensive?

“These schemes do not deliver better outcomes for the consumer in terms of reduced delays or cancellations, and they increase cost of travel,” he said.

“There is absolutely no evidence it would lead to a price rise of any note to consumers. Look over at Europe, the prices are extraordinarily competitive.”