Qantas has warned that the introduction of a passenger refund law in Australia could result in higher ticket prices for consumers.
Qantas Domestic CEO Markus Svensson made the warning during an inquiry into airline passenger rights on Monday.
Svensson argued that compensation-based schemes, like those in the European Union and Canada, have not led to reduced delays or cancellations, but have instead driven up the cost of travel.
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“The potential effect on fares, implications for low-cost carriers, and the likely negative effect on economically marginal routes – particularly on Australia’s regional network – should be closely considered,” Svensson said.
The inquiry into the airline passenger protections bill follows a string of controversies for Qantas, including the airline’s 2024 $120 million fine for selling tickets on already cancelled flights.
Senator Bridget McKenzie, who supports the “pay on delay” bill, said Qantas’ sale of “ghost flights” would be seen as a breach of consumer trust.
She highlighted concerns that passengers are losing confidence in voluntary protections offered by airlines.
“If Qantas was willing to knowingly sell those ‘ghost tickets’, why should passengers trust that the voluntary consumer protections offered in your own policies are enough?”
Qantas has faced criticism for its cancellation rates, with the airline cancelling 2.4 per cent of its flights in January, compared to 0.9 per cent for Virgin Australia.
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