Consumer protections would undermine Jetstar’s ‘existence’: CEO

Jetstar’s CEO, Stephanie Tully, has warned that the government’s proposed Aviation Consumer Protection Charter could threaten the viability of the low-cost airline by imposing higher costs and responsibilities for issues beyond its control. Speaking before a Senate committee, Tully criticized the framework as overly prescriptive and one-size-fits-all, arguing it would undermine Jetstar’s business model. She expressed particular concern about rules that would hold the ticket-selling airline responsible for customer service failures of code-share partners, a departure from global industry standards. The Aviation Consumer Protection Charter is part of a broader legislative effort to establish clear minimum standards for airline and airport services, aiming to enhance transparency and enshrine passenger rights. Airlines including Qantas and Virgin have also voiced reservations about the framework, emphasizing their commercial incentives to maintain good customer service. Industry representatives highlighted the need for clarity around obligations under Australian Consumer Law, which mandates that services be fit for purpose, suggesting that more precise definitions could help achieve the reform’s objectives. Consumer advocates welcomed the introduction of an Aviation Consumer Ombudsperson empowered to make binding decisions in passenger disputes, viewing it as a positive development for enforcing consumer rights. However, they criticized the legislation for lacking a comprehensive passenger bill of rights outlining clear rights and obligations. The debate comes amid ongoing public frustration over flight cancellations and delays following the easing of COVID-19 restrictions, which have intensified scrutiny of airline customer service practices. The Senate committee hearings reflect the challenge of balancing consumer protections with the operational realities of airlines, particularly low-cost carriers like Jetstar. The outcome of this legislative process will have significant implications for the aviation industry’s regulatory landscape and the future of affordable air travel in Australia.