Pressure is mounting on the federal government to strengthen consumer protections in the aviation sector after a budget airline left travellers stranded and out of pocket when it abruptly cancelled services to a popular holiday destination.<\/p>\n
Indonesia AirAsia, part of the AirAsia Group, told passengers via email and text this week that flights between Denpasar and Cairns will be suspended from next month, citing a “network optimisation initiative.”<\/p>\n
Just a week before the route was cancelled, the airline was selling one-way flights for more than $800 \u2014 at least three times the fare other passengers had paid in recent months.<\/p>\n
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AirAsia sent text messages and emails to customers. (Supplied: Sandy Henny)<\/p>\n
Queensland couple Sandy Henny and Ned Kelly booked their Indonesia AirAsia flights to Bali to celebrate her birthday in November. The couple from Airlie Beach is yet to receive a refund.<\/p>\n
“We got an email saying our flights are cancelled. No real explanation, just that they’re optimising their network,” Ms Henny said.<\/p>\n
“There’s no empathy.”<\/p>\n
Social media has been flooded with complaints, with travellers struggling to re-book or claim refunds.\u00a0<\/p>\n
Return flights from Cairns to Bali will continue until next month but some customers say they’ll need to fly home with another airline because the route cancellation takes effect during their holiday.<\/p>\n
Indonesia AirAsia only began operating the three-weekly flights between Bali and Cairns a year ago, a service welcomed by Far North Queensland tourism operators as a direct link to a key holiday market.<\/p>\n
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Sandy Henny had her flights cancelled to Denpassar. (Supplied: Sandy Henny)<\/p>\n
In a statement, CEO of AirAsia Indonesia, Achmad Sadikin Abdurachman said the decision to cut flights from September 19 “follows a thorough analysis of demand trends and route performance, ensuring that we focus our resources on the most sustainable and high-demand operations.”<\/p>\n
He said the company had contacted travellers, offering full refunds, credit and offered flight changes to an earlier travel date.<\/p>\n
The company introduced a direct service between Adelaide and Bali in June.<\/p>\n
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AirAsia only began flying between Cairns and Bali a year ago. (Supplied: AirAsia)<\/p>\n
Why low-cost carriers abruptly cut routes<\/p>\n
Aviation expert Justin Wastnage, an adjunct industry fellow at Griffith University’s Institute of Tourism, said the abrupt cancellation reflects the business model of low-cost carriers.<\/p>\n
He said overseas-based budget airline carriers often take decisions on routes “ruthlessly and quickly and just kill routes when they’re not making enough money”.<\/p>\n
He said the risks for passengers are heightened in Australia because there is no automatic compensation in the event of cancellations, like Europe.<\/p>\n
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AirAsia were selling one way fares for $852 earlier this month. (Supplied: Sandy Henny)<\/p>\n
“Consumers have to take out their own travel insurance, which leaves those without adequate cover in the lurch,” Mr Wastnage said.<\/p>\n
He said low-cost carriers don’t offer the same protections or services as larger airlines.<\/p>\n
“You pay your money and you take your choices. The advertised fare might be low, but the extras add up \u2014 baggage, seats, protection \u2014 and if a flight is cancelled, you have very little recourse.”<\/p>\n
Consumer protections under scrutiny<\/p>\n
Unlike many other countries, Australia currently has no specific consumer protection laws for airline travellers.<\/p>\n
The federal government’s Aviation White Paper, released in August last year, set out plans for an independent Aviation Industry Ombuds Scheme and a Charter of Customer Rights, designed to establish national standards for the “fair and appropriate treatment of customers by airlines and airports.”<\/p>\n