In a groundbreaking revelation, the Australian Travel Industry Association (ATIA) has sent shockwaves through the nation, drawing the Senate’s attention to the startling state of the country’s aviation industry. International flight fares from Sydney in 2023 have skyrocketed, increasing to a staggering 99% compared to pre-COVID rates. Coupled with a dwindling competition landscape and limited capacity, ATIA presses on the urgency of a comprehensive revolution, not a mere recalibration, to place the consumer at the forefront of the aviation sector.
ATIA tells Senate inquiry a revolution is needed
Core reforms advocated by the ATIA include an uncomplicated refund mechanism for consumers when flights are cancelled without same-day accommodation—mirroring stringent EU consumer protection standards for inevitable delays or cancellations. The ATIA also emphasizes the dire need to amplify Australia’s existing ‘open skies’ air service agreements from a mere nine to rival powerhouse aviation markets like the US, boasting 100 agreements, and Canada with 23.
The Association’s research illuminates the rampant price surge across various travel categories. Notably:
- Sydney to Hong Kong economy ticket now at a staggering $853 (+81%)
- Los Angeles-bound travellers from Sydney are paying $1254 (+67%)
- An economy ticket to Dubai from Sydney stands at $853 (+64%)
- A record hike in premium economy to Dubai touches $2224 (+99%)
- Premium economy voyages from Sydney to Doha and Singapore amounted to $959 (+72%) and $1057 (+59%), respectively.
The ATIA underscores the need for a systematic overhaul in decision-making to ensure a progressive trajectory for Australia’s aviation. Airlines entering Australian airspace must be evaluated based on their advantages and impacts on travellers. Further, the ATIA demands increased transparency, including comprehensive written decision justifications.
ATIA CEO Dean Long passionately represented the Association’s standpoint in the committee session, flanked by ATIA’s Vice Chair and Flight Centre’s Global MD, Graham Turner. Long emphasized, “It’s high time consumers stand central to aviation decisions. The current system, originating from 1944, is archaic and not reflective of today’s demands.”
“Remember,” Long continued, “aviation isn’t just about airlines and airstrips. An overwhelming 70% of Australia’s international travel is facilitated through our members. Over the past year, Australian agents have processed a whopping 10 million tickets, amassing nearly $14 billion. Our first-hand experience equips us with unparalleled insights into existing hitches, primarily caused by a slew of cancellations, setbacks, and refund quandaries.”
Underlining the pivotal role of travel professionals during the tumultuous COVID era, Long accentuated the necessity of a robust consumer protection structure. “Without an equivalent to the EU’s robust framework,” he concluded, “Australian passengers will continue to grapple with less-than-perfect solutions.”
A comprehensive version of the ATIA’s recommendations is available for public review.
Written by: Christine Nguyen
