With international fares from Sydney in 2023 up to 99% higher than pre-COVID, and a lack of competition and capacity, the Australian Travel Industry Association (ATIA) has told the  Senate Committee Inquiry into Bilateral Air Service Agreements a revolution rather than a recalibration of Australia’s aviation industry is needed to ensure consumers are better supported.

Among the reforms ATIA believes are critical are:

• The need to simplify refund rights for consumers where a flight is cancelled and passengers not accommodated on the same day like that present in the EU for statutory compensation in certain instances of delay or cancellation
• Expansion of Australia’s ‘open skies’ air services agreements from nine to a level comparable with leading aviation markets (US has 100 open skies agreements, Canada 23)

ATIA’s submission shows that significant price increases have not been confined to a specific class of travel, although the growing popularity of premium economy seating has seen even greater price rises for this category. Some of the highest price increases across classes include:

• Sydney to Hong Kong – Economy –$853 one-way (+81% increase)
• Sydney to Los Angeles – Economy –$1254 one-way (+67% increase)
• Sydney to Dubai – Economy –$853 one-way (+64% increase)
• Sydney to Dubai – Premium Economy – $2224 one-way (+99% increase)
• Sydney to Doha – Premium Economy – $959 one-way (+72% increase)
• Sydney to Singapore – Premium Economy – $1057 one-way (+59% increase)
• Sydney to Doha – Business/First – $3165

ATIA is calling for a reshaping of the way decisions are made about which airlines are allowed in fly to Australia so that the benefits and impact on travellers is included in the ‘national interest’ requirement. ATIA is also asking for more transparency in this process including the provision of written reasons.

ATIA CEO Dean Long appeared before the committee alongside ATIA Vice Chair and Flight Centre Global MD Graham Turner.