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AAP
AAP
Tess Ikonomou

RARE PHOTOS: Pay on delay protections would increase costs airlines | Vintage Vibes

A proposed customer compensation scheme was sparked by an increase in complaints against airlines. (Dave Hunt/AAP PHOTOS)

Australia's largest airlines have warned a proposal to force carriers to pay cash to passengers due to delayed or cancelled flights would pass on extra costs to customers while creating an industry of "ambulance chasers".

Qantas and Virgin representatives fronted a parliamentary hearing into the coalition's Pay on Delay bill on Monday, where they argued a compensation scheme didn't improve customer protection.

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