Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

by leave—I move:

That this bill be now read a second time.

I table an explanatory memorandum relating to the bill, and I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

The Airline Passenger Protections (Pay on Delay) Bill 2024 addresses the growing concerns surrounding passenger protections and poor performance of participants within the Australian aviation sector. This private senators' bill put forward by the Coalition represents a necessary step forward in enhancing the rights and protections of airline passengers across Australia.

The Australian aviation industry serves as a vital lifeline, connecting our vast country and fostering economic growth and social cohesion. However, in recent years, there has been a concerning rise in the frequency of delays and cancellations, causing considerable inconvenience and frustration for passengers. It is imperative that the Australian Government take tangible steps to address these issues and ensure that passengers are treated with the dignity and respect they deserve when traveling by air.

The Airline Passenger Protection (Pay on Delay) Bill 2024 seeks to achieve this objective through a comprehensive set of measures designed to protect passengers' rights and interests in situations where delays, cancellations, or denial of boarding occur. The Bill would require the Transport Minister to make rules which aim to safeguard passengers' rights and ensure a minimum standard of service across all carriers, foreign and domestic.

In the dynamic landscape of the Australian airline industry, competition from major airlines, both domestically and internationally, plays a pivotal role in shaping the customer experience. With a mix of established carriers and low-cost airlines vying for market share, passengers should benefit from a diverse range of options and pricing.

Every Australian who travels across the country knows how much our aviation market needs greater competition—and the lower prices and higher standards that accompany it.

The latest ACCC airline monitoring report confirms once again that the sector is not where it should be, as does that fact complaints to the ACCC concerning aviation have risen by nearly 200% since 2018. With around 93% of market share, Qantas and Virgin have a tighter grip on domestic air travel than another notable duopoly—Coles and Woolworths—have on the supermarket industry.

Governments would generally rather industry provide suitable consumer protections without the need for regulatory intervention. Unfortunately, sustained poor performance has necessitated this intervention.

The reality is that airlines have been held largely unaccountable for their poor performance because Australian consumers have not had the option of choosing other operators. While Australia works to foster competition in the sector, the minimum standards that would be set under this Bill provide travellers with the consumer protections they so clearly need.

The Bill requires the Minister for Transport to establish an aviation code of conduct within 12 months, after consultation with relevant stakeholders. The rules would ensure that airlines adhere to specific standards of service and accountability towards their passengers. By establishing clear guidelines for airlines, the Coalition aims to promote transparency and accountability in the industry, ultimately leading to improved passenger experiences.

Key provisions of the rules required by the Bill include:

1. Protection of minors: Recognising the vulnerability of minors, the Bill would require the Transport Minister to make rules which mandates that minors under the age of 14 are seated next to their guardian at no extra cost. This provision is crucial for ensuring the safety and well-being of young passengers and providing peace of mind to families and caregivers.

2. Minimum standards of treatment: The Bill would require the Transport Minister to make rules which establish minimum standards of treatment for passengers who experience delays, cancellations, or denial of boarding. These standards are intended to ensure that passengers are provided with essential amenities such as food, water, and accommodation during such disruptions, thereby mitigating the inconvenience and discomfort experienced by passengers and providing passengers with protections and recourse in the event of disruptions. The minimum standards may also set compensation for significant delays, cancellations or denial of boarding.

3. Compensation for lost or damaged baggage: In cases of lost or damaged baggage, the Bill would require the Minister to make rules which introduce provisions for passengers to seek compensation. It is unacceptable for passengers to suffer financial losses due to mishandling of their baggage by airlines. Therefore, this bill establishes a framework for passengers to seek compensation for the loss or damage of their baggage, thereby holding airlines accountable for their actions.

4. Provide refunds in a timely manner: The rules would set out a carrier's obligation to provide refunds, and any other compensation owed, in a timely manner.

5. Ground delays: in the case of tarmac delays over 3 hours, the Bill requires rules for carriers including the obligation to provide timely information and assistance to passengers, as well as the minimum standards of treatment of passengers that the carrier is required to meet. This closes any loophole that a carrier could board a flight to avoid penalties, knowing the aircraft cannot depart within a specified time.

6. Information: The carrier will be required to provide timely information, in language that is simple, clear and concise. This includes any information regarding recourse against the carrier under the carriers obligations.

7. Aviation code of conduct: The requirement to establish an airline code of conduct is in direct response to the ongoing concerns by the ACCC and other consumer advocacy groups regarding carriers' pricing strategies, inconsistent fare types, and the experiences of third-party purchasers of airfares. The purpose of the code is to ensure the fair and proper treatment of passengers and that passengers reach their intended destination as booked. The code will also require the Government to clearly define a consistent definition of a ticket of carriage to apply to all tickets of carriage issued by carriers, including the minimum rights which passengers and third parties are guaranteed when they purchase a ticket of carriage from a carrier.

As Australia navigates its regulatory framework for passenger protections, there is an opportunity to learn from the experiences and best practices of jurisdictions such as the European Union, the United Kingdom, and Canada.

By adopting robust rules that prioritise passengers' rights and ensure consistent standards of treatment across all airlines, Australia can enhance the customer experience, bolstering consumer confidence in the aviation sector. Moreover, a proactive approach to passenger protections can contribute to a more competitive, resilient and productive industry, where airlines are incentivised to prioritise customer satisfaction and deliver high-quality services, ultimately benefiting passengers and the broader economy alike.

The Airline Passenger Protection (Pay on Delay) Bill 2024 represents a significant opportunity to safeguard the rights and interests of airline passengers in Australia and enhance national productivity.

I seek leave to continue my remarks later.

Leave granted; debate adjourned.