Australian airlines push back on calls to compensate passengers for delays and cancellations

Exclusive: Companies say a compensation scheme like the EU's would drive up air fares in Australia

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Australian airlines are pushing back against calls for new laws that would force them to pay cash compensation to passengers whose flights are delayed or cancelled, with claims it would force carriers to preemptively raise air fares to fund payouts.

The resistance follows the Australian Competition and Consumer Commission, consumer advocate Choice and the Australian Lawyers Alliance all separately raising the prospect of a compensation scheme to rein in airlines arbitrarily changing their schedules, as the government considers its aviation white paper.

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