The Albanese government of Australia has unveiled a new aviation white paper aimed at enhancing passenger rights and addressing aircraft noise issues.

As part of this initiative, the federal government plans to develop a 'charter of rights' for airline customers, which will establish clear expectations for fair treatment.

Concerns have been raised that the government's proposals may only require airlines to refund travel expenses without additional compensation for distress.

The aviation market in Australia is highly concentrated, with Qantas and its budget airline Jetstar controlling over 65% of domestic flights.

Under the new passenger charter, travelers will be entitled to cash refunds and alternative travel arrangements for cancelled or significantly delayed flights.

A new ombudsman will be established with the authority to direct airlines and airports to provide remedies for flight cancellations and delays.

This ombudsman will also have the power to compel airlines to address customer complaints and will report on their conduct.

Without decisive action to enhance competition and penalize major airlines for controllable cancellations, customer experiences are unlikely to improve.

The government faces criticism for the slow pace of reforms needed to improve competition and customer satisfaction in the aviation sector.

The white paper highlights challenges in airline competition, attributing them to airports being 'natural monopolies' and a lack of interest from overseas airlines.

The white paper commits to implementing recommendations from a 2020 report that called for reforms to Sydney Airport's slot management.

Recent statistics reveal that one in every 27 domestic flights was cancelled last year, with nearly one in three flights delayed, leading to widespread passenger frustration.