Airlines have been blasted for unresolved customer complaints and inadequate compensation despite claims their performance is improving.
Western Australian Labor senator Glenn Sterle used a Senate inquiry to tell Qantas and Virgin officials travellers were left in the dark about flight cancellations.
"Trust me, gang, you're not loved out there," he said on Friday.
"You say things are getting better, things are improving. Well, they might be for the Glenn Sterles sitting in the Chairman’s or the Velocity (lounges), but for the poor bugger out there with the screaming kids, they ain’t (sic).
"You’re fooling yourselves.”
Airline executives told an inquiry into the Aviation Consumer Protection Bill proposed fixed compensation schemes - under which companies must pay a set amount for delays, overbookings, luggage damage and cancellations - would put regional travel at risk.
The bill would overhaul consumer protection standards, making aviation companies and airports responsible for almost all travel issues, but airlines have said most of the recommendations were not viable.
"(Pay on delay schemes) present a significantly increased cost to airlines," Virgin Australia's legal team manager Rebecca Walker said.
"Our view is a fixed compensation model doesn't accurately reflect the loss consumers might suffer."
Low-cost airlines servicing regional areas were struggling, she said, and should not be responsible for paying compensation for issues beyond their control.
Senator Sterles requested Ms Walker and other representatives save the "crocodile tears".
The inquiry was told Virgin was holding more than $93 million in customer money from travel cancelled during the COVID-19 pandemic.
The credits will expire on June 30, at which point Virgin will retain the money.
Jetstar credits had no expiry date and its parent company Qantas has offered ongoing refunds.
Advocates also told the panel disabled Australians whose mobility aids had been damaged or lost in transit were not being fairly compensated, as the aids were considered baggage under Australian law.
"We would like to see (that change)," Justice and Equity Centre lawyer Sheetal Balakrishnan said.
“Disability aids are not a subset of baggage. They are essential to mobility and independence," she said.
"When they are damaged or lost, the consequences are far more serious than for ordinary baggage.
"The legislation should explicitly reflect that."
The Senate inquiry into the bill is due to release its report in mid-June.
