Australians have been asked to have their say on a scheme that could force airlines to pay cash compensation to customers for delayed or cancelled flights.

Federal Infrastructure and Transport Minister Catherine King announced this morning that public consultation has opened on the government’s proposed aviation consumer protection and ombudsman scheme.

There is currently no obligation for airlines to provide compensation to customers in Australia if they cancel or delay flights.

“We want to see a lift in standards for the passenger experience,” King told Today. 

“It’s not been great, particularly post-COVID. It’s getting a bit better, but really this is what this scheme is focused on.”

While not in place in Australia yet, airline consumer protection schemes have been introduced overseas.

Travellers in the European Union are entitled to compensation of up to €600 (about $1070) if they are delayed by three hours or more. 

The US had planned to introduce similar compensation of up to $US775 (about $1170) under the Biden administration, but President Donald Trump recently scrapped that proposal.

King said the federal government’s scheme would provide protection for “anyone who books on Australian soil”, and would cover substantial disruptions rather than relatively minor, 15-20 minute delays.

“We often see that people, when they have had a really significant delay that’s disrupted them (or) baggage loss, they’ve really found it quite difficult at times to get some form of redress,” she said. 

“This scheme is really laying it out clearly: this is what your rights are, this is how you can enforce those rights, this is what the expectation of airlines and airports is.”

Consumer group Choice welcomed the proposed scheme.

It said the government needed to ensure the ombudsman was fully independent, and make it clear that customers have a right to compensation for major disruptions.

“The new scheme marks a long-overdue shift in Australia. We deserve clear rights when flights don’t go to plan, not a patchwork of airline policies,” spokesperson Rosie Thomas said.

“However, consumer rights are only ever as strong as the complaints processes to enforce them.

“We’re concerned the proposed aviation complaints body falls short compared with strong, independent ombuds schemes in other concentrated markets. 

“Banks and telecommunications companies have to answer to an independent umpire and the airlines should too. 

“We are also disappointed that the proposal does not include clear rights to compensation for delayed or cancelled flights… this is something Australians also deserve.”