US flight reforms put pressure on Australian airlines to follow suit

New regulations that entitle all US airline passengers to an automatic cash refund in the event of flight cancellations or significant schedule changes came into place on October 30.

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.

Airlines will also be required to provide refunds if passengers are downgraded to a lower cabin class or if a paid service, such as wi-fi, fails to be delivered.

Travel insurance expert Natalie Ball of comparetravelinsurance.com.au and consumer advocate Adam Glezer welcome the regulations, describing them as a positive development for travellers, and call for Australian airlines to follow suit.

Ms Ball says Australian airlines are falling short in meeting their consumer responsibilities.

“Airlines must be held accountable for the service they provide — or fail to provide. In November last year, 45 per cent of flights on some of Australia’s busiest domestic routes were either cancelled or delayed. That’s a lot of inconvenienced customers,” she says.

While the US regulations won’t apply to Australian airlines, Ms Ball suggests that the policy shift could pressure them to improve their customer service standards and come into line with the US and Europe.

Passengers in the European Union are entitled to up to €600 ($975) when delayed for more than three hours. And those eligible for refunds must be compensated within seven days of a flight cancellation.

Mr Glezer also suggests Australian airlines need to step up and follow suit.

“These are the type of laws that Australia should also have in place,” he says. “The bottom line is, when it comes to airline protection for consumers, we’re well behind other areas of the world, such as the US and UK, in terms of compensation and the automatic right to refunds.”

He says that in his experience, airlines often shift the blame when they are at fault for a delay or cancellation.

“When the cancellation is within the airline’s control, they should automatically refund consumers without telling them to go and get a refund from their insurance company. It’s the airline’s responsibility to refund customers in situations such as these. On multiple occasions, I’ve had consumers tell me the airline has told them to get a refund from their insurance company, even though it wasn’t their responsibility to provide one.”

Travel insurance and flight delays

Ms Ball says travellers should know their consumer rights when impacted by an airline delay or cancellation. Airlines may not offer compensation for delays caused by reasons outside the airline’s control so it’s important to have comprehensive travel insurance to cover unexpected expenses.

She recommends getting everything down on paper and knowing your entitlements.

“Ensure you understand the reason for your flight disruption, take notes of any conversations and save all your email correspondence,” Ms Ball says.

“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. 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.”