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2022-2024
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
AIRLINE PASSENGER PROTECTIONS (PAY ON DELAY) BILL 2024
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator McKenzie and Senator Dean Smith)
AIRLINE PASSENGER PROTECTIONS (PAY ON DELAY) BILL 2024
OUTLINE
The purpose of this Bill is to require the Minister for Transport to make rules to prescribe
certain obligations to passengers for airline carriers operating in Australian airspace. The
obligations would be designed to protect passengers who experience a delay, cancellation or
denial of boarding.
The Bill also requires the Minister to establish an airline code of conduct that provides for the
protection of passengers and third parties from improper conduct by carriers.
The Bill is in response to the increasing level of consumer complaints lodged against airlines
in Australia. 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 - do on the supermarket
industry. The reality is that domestic airlines have been held largely unaccountable for their
poor performance because Australian consumers have not had the option of choosing other
operators.
In the international sector, airlines operating in Australia are already subject to similar
requirements in other jurisdictions, such as the European Union, United Kingdom and
Canada. The new rules would ensure foreign carriers operating in Australia are subject to the
same consumer obligations as domestic carriers.
NOTES ON CLAUSES
Clause 1: Short Title
1. Clause 1 provides for the short title of the Act to be the Airline Passenger
Protections (Pay on Delay) Act 2024.
Clause 2: Commencement
2. This clause provides that the Bill will commence on the day after this Act receives
the Royal Assent.
Clause 3: Definitions
3. This clause defines the terms used in the Bill and in particular:
• provides a definition of "Australia" to ensure that the rules would apply to all
Australian airspace including the external territories; and
• provides a definition of "carrier" and "passenger-carrying operation" to ensure
that the obligations under the rules and code of conduct would apply to any
aviation passenger service; and
• provides a definition of "Transport Minister" to ensure the Bill places
obligations on the Minister administering the Civil Aviation (Carriers'
Liability) Act 1959, regardless of a change in title.
Clause 4: Transport Minister must make carriers' obligations rules
4. Subclauses 4(1) and (2) would require the Minister to make rules (the carriers'
obligations rules) within 12 months of the commencement of the Act, but only after
consultation with aviation industry stakeholders, consumer advocates and other relevant
agencies.
5. This ensures that the obligations are well communicated in advance of any regulation
and give the industry, advocates and relevant agencies an opportunity to assist in clarifying
industry definitions and terms.
6. Subclause 4(3) sets out the obligations that the Minister is required, but not limited, to
make provision for in the carriers' obligations rules to ensure passengers are protected in
certain circumstances.
7. Subclause 4(4) would require the Minister to consider the constitutional heads of
power under which the rules would be made.
Clause 5: Transport Minister must make aviation industry code of conduct
8. Subclauses 5(1) and (2) set out the basic requirements and purpose of the aviation
industry code of conduct.
9. Subclause 5(3) would require the Minister to consult with certain stakeholders prior to
making the code of conduct.
10. Subclause 5(4) would require the code of conduct to, at a minimum, make provision
for the recourse or intervention available to passengers for improper conduct by carriers and
requires a consistent definition of a ticket a carriage to be developed to apply to all tickets of
carriage issued by carriers.
11. Subclause 5(5) would require the Minister to consider the constitutional heads of
power under which the code of conduct would be made.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
AIRLINE PASSENGER PROTECTIONS (PAY ON DELAY) BILL 2024
This Bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
Overview of the Bill
This Bill is intended to improve the protections of airline passengers and place obligations on
airlines operating to, from and within Australia and its external territories.
Human rights implications
This Bill does not engage any of the applicable rights or freedoms.
The Bill is designed to enhance the rights and freedoms of airline passengers that purchase
tickets of carriage for airlines operating to, from and within Australia and its external
territories.
The Bill also requires the Minister to make rules that ensure children aged 14 and under are
seated next to a parent or guardian for no additional charge.
Conclusion
This Bill is compatible with human rights as it does not raise any human rights issues.
Senators McKenzie and Dean Smith