The US has passed some brutal new consumer laws (for airlines), which may have Qantas finally paying up for poor service.
Under new US consumer protection rules that came into effect this week, passengers travelling to or from the US are now entitled to automatic cash refunds if their flight is significantly delayed, changed, or cancelled. As Qantas is the major Australian carrier to the US, this will hit the beleaguered company the hardest.
And let’s face it, Qantas is better known for its poor service than anything else these days.
Regular travellers, when was the last time you took a flight with Qantas that wasn’t delayed or cancelled? I had both last time I flew, and luckily for Qantas it was only domestic.
In further bad news for Qantas, but good news for us, refunds will also be triggered by delayed baggage and services paid for but not delivered, such as seat selection, with refunds also issued when travellers are downgraded to a lower cabin than they booked.
All US flights
The legislation also covers domestic flights within the US as well as passengers travelling in transit to countries such as Canada or Mexico.
You sense the authorities have had enough. The rules are simple and to the point, and designed to hit the airlines right in the pocket. Airlines must refund automatically within seven business days for tickets bought on a credit card, and within 20 calendar days for any other form of payment. No more travel credits or vouchers for airlines failing to do their job.
“Passengers deserve to get their money back when an airline owes them – without headaches or haggling,” said US transportation secretary Pete Buttigieg.
“Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”
Airlines must also provide prompt notifications to consumers affected by a cancelled or significantly changed flight of their right to a refund of the ticket and extra service fees, as well as any related policies.
It’s another example of how Australia is lagging behind in consumer law for compensation for travel. The EU, Canada and the UK all have considerable systems of fines and refunds in place to recompense passengers affected by delays or cancellations.
However, there may be good news on the horizon, the federal government released a policy white paper earlier this year that included a pathway to improve consumer rights.
Not getting what we pay for
“We’ve heard people are not getting the experience that they are paying for … these reforms will significantly change that … I’m sure at the next election that if someone wants to change and withdraw those rights that it will be a matter of contest and debate for all of us,” transport minister Catherine King told The Sydney Morning Herald.
“It will allow people to directly put in complaints to the ombudsman as well as seek remedies that will be legislated as part of that scheme. What we all want to see is that customers get what they pay for when they’ve bought a ticket,” Ms King said.
Do you think airline refunds should be improved? Why not share your thoughts in the comments section below?
Also read: What are the 2025 travel trends for older Australians?
