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Qantas Airways has warned against introducing a European-style compensation scheme for passengers, arguing it will do nothing to reduce delays and cancellations and will push up the cost of airfares.<\/p>\n
In its submission to the federal government\u2019s aviation green paper, the airline business said measures in other jurisdictions, including the EU compensation scheme which mandates airlines pay passengers in the event of disruption, had not improved on-time performance and would materially increase costs.<\/p>\n
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Qantas said mandated compensation would increase airfares and fail to reduce the number of cancellations and delays. <\/span>Credit: <\/span>AFR<\/cite><\/p>\n \u201cThe Qantas Group considers that the introduction of mandatory compensation would be a backwards step that will do nothing to reduce delays and cancellations, will increase confusion and complaints and materially increase costs, ultimately leading to higher fares and potentially compromising the viability of marginal routes,\u201d the submission said.<\/p>\n The number of airline-induced cancellations skyrocketed over the past two years as the reduced supply of aircraft and staff hamstrung carriers trying to meet high demand after the pandemic.<\/p>\n Many things can disrupt an on-time departure, and some \u2013 weather disruption, airport technology failures or a lack of air traffic controllers \u2013 are outside the airline\u2019s control. Because of this complex supply chain, local airlines have balked at the idea of creating an airline-only compensation system in the event of a delay or cancellation.<\/p>\n Qantas said the government should tread cautiously amid calls to establish an independent ombudsman and should broaden it to look at the wider aviation ecosystem and consider the cost implications.<\/p>\n \u201cFor their considerable cost, current ombudsman models are notoriously ineffective at delivering timely resolution of consumer complaints,\u201d the submission said.<\/p>\n The Australian Competition and Consumer Commission and the consumer advocacy organisation Choice have called for the establishment of an independent ombudsman with the powers to force a resolution in line with consumer law. The Australian Airports Association recently endorsed this proposal in its aviation green paper submission.<\/p>\n Qantas and its budget arm Jetstar control more than 65 per cent of the domestic market, while Virgin holds more than 30 per cent. Politicians, competition experts and members of the broader industry have routinely attributed periods of high delays and cancellations to a lack of competition in the airline sector.<\/p>\n \u201cSuggestions that the concentrated structure of Australia\u2019s domestic aviation market or a lack of competition are responsible for causing these ongoing operational issues are entirely misplaced and reflect neither the available evidence nor the drivers on airlines to deliver on-time performance,\u201d Qantas\u2019 submission said.<\/p>\n The government recently reinstated the ACCC\u2019s tailored monitoring of the airline sector, after the funding for its quarterly reports expired earlier this year to outcry from consumers and the rest of the aviation sector.<\/p>\n Qantas used the submission to reiterate its defence against allegations that it hoards slots at Sydney Airport and confirmed its support for reform to the slot system as part of the looming white paper. It also accused the country\u2019s airports of \u201cbehaving badly\u201d and called for better regulation.<\/p>\n It also defended its COVID-19 flights credit policy, which was widely criticised earlier this year and eventually wound back, arguing that it \u201ccompared favourably\u201d to those of most international airlines even if customers have \u201cnot always found it easy to use\u201d.<\/p>\n Qantas scrapped the expiry date on COVID-19 flight credits in August after widespread backlash. Rival Virgin Australia\u2019s flight credits are set to expire in 2025.<\/p>\n