Australia's largest airlines have warned a proposal to force carriers to pay cash to passengers due to delayed or cancelled flights would pass on extra costs to customers while creating an industry of "ambulance chasers".
Qantas and Virgin representatives fronted a parliamentary hearing into the coalition's Pay on Delay bill on Monday, where they argued a compensation scheme didn't improve customer protection.
Qantas Domestic chief executive Markus Svensson pointed to a review done of similar schemes in Europe.
(They) led to the cost being passed through the consumer, which is not a good outcome," he told the hearing.
"You create this industry of ambulance chasers. So you're creating this side industry that's no good for anyone."
Virgin Australia general manager of government and industry affairs Stephen Beckett said in the EU about $9 billion in compensation has been made payable to customers.
"We've seen, at the same time, almost a doubling in the number of cancellations," he said.
"The types of performance that you're looking to improve is not connected to what is paid and what's not paid."
Opposition transport spokeswoman Bridget McKenzie said the airlines found themselves in this situation due to their own conduct.
"You've shown yourselves to not be good corporate citizens and to not be putting your customers first," she said.
"It's the broader breach of community trust, which has seen your position in the most trusted companies nosedive across Australia because of your own behaviour."
Mr Beckett said he believed passengers should be protected and looked after regardless of where they fly.
"That is why we do strongly support better access to Australian consumer law, where customers can seek remedies for when their flight doesn't go to the on time performance," he said.
"Virgin Australia has agreed and supported a strengthening of the complaints handling body, and for that body to be able to make determinations, final determinations, that the airlines must live by."
In response, Senator McKenzie quipped "but it doesn't".
The proposed legislation comes in response to the increasing level of consumer complaints lodged against airlines in Australia.
Virgin and Qantas have a combined market share of about 93 per cent on domestic air travel.
The Australian Competition and Consumer Commission's latest airport monitoring report rated the nation's top four airports as "good".
Australian Airports Association chief executive Simon Westaway welcomed the results, as passenger traffic strongly rebounded from the COVID-19 pandemic.
"Australia’s big four airports have maintained this high quality of service rating since the 2018 financial year, while passenger-specific surveys have kept in the same category for more than a decade," he said.
"With Australian air passenger numbers close to pre-COVID levels, this has boosted the financial performance of airports after recent years of significant revenue loss due to the pandemic and border closures."
Total air passenger numbers at Australian airports are expected to reach 210 million by the end of the decade, increasing by more than 30 per cent on current levels.
