The Federal Government yesterday released a consultation paper on aviation consumer protection laws that is concerning the Australian Airports Association (AAA) over the impact on smaller regional airports.
If adopted as written, the new laws would see airports as well as the airlines responsible for compensating passengers for delays and cancelations.
AAA CEO Simon Westaway says including airports in compensation schemes has no parallel anywhere in the world, and his organisation is concerned that it will have unequal impacts on small regional airports that are already struggling to remain financially afloat.
“Australians deserve a reliable, responsive and customer focused aviation experience, particularly when things go wrong but any new scheme must be practical, clearly scoped and deliver real benefits without adding unnecessary cost or complexity,” Westaway said.
“The government’s consultation paper also recognises that airlines, rather than airports, are expected to account for the majority of the operations of the proposed framework. Therefore, the AAA is concerned that the scheme is proposed to apply to all airports across Australia.
"Many smaller and regional airports do not have the staff or resources to implement or fund such measures and already face serious financial challenges.
"While we welcome the government's consideration of options to distinguish entities based on their size or nature, government should note around 60% of council owned airports operate at a loss each year.
“We are calling for a sensible passenger threshold of one million passengers annually. This would still cover more than 90% of travelers."
A one million passenger threshold would exclude from the scheme regional RPT airports such as Ballina, Karratha, Mackay, Mildura, Dubbo and Broome.
Westaway said that compensation schemes applied to small airports had the potential to divert money away from essential infrastructure works and airport upgrades.
The government's consultation paper is open for feedback until 5 October, and can be read on the Department of Infrastructure and Transport website.