The federal government has launched public consultation for an aviation consumer protection scheme, which would nationalise standards for what passengers are entitled to if their flight doesn't leave as scheduled.
Under the scheme, a minimum level of assistance would be set in place for what airlines would be required to give affected passengers.
Among the levels of compensation being considered are refunds, access to food or accommodation or a quick re-booking to a similar flight.
A European-style scheme where financial compensation was offered to affected passengers would be unlikely, Transport Minister Catherine King said.
"In Europe, for example, you've got millions more passengers than we do. You've got lots more airlines as well, and that's distributed across all of those tickets," she told reporters on Monday.
"We've got a much more concentrated market here.
"This is about trying to lift the standards for passengers right the way across aviation, but we think we've got the balance right for the scheme that suits Australian conditions."
Consultation on the scheme will run for four weeks, with the federal government saying it would look to enshrine it in law "as soon as possible".
Consumer advocacy group Choice said the airline scheme was a "long-overdue shift", but criticised the government for not offering compensation.
"Compensation schemes in Europe have encouraged airlines to reduce avoidable delays, and provide consumers with simple cash payments when flights are cancelled or late - this is something Australians also deserve," Choice's director of campaigns Rosie Thomas said.
"We're concerned the proposed aviation complaints body falls short compared with strong, independent ombuds schemes in other concentrated markets."
Minimum standards as part of the protection scheme would also include information shared with passengers when a flight is booked or when people check in, as well as how airports should manage complaints.
The consumer scheme is also set to include standards for airlines in the event baggage is lost and what is offered to passengers.
Airports themselves will also be included in the scheme's charter.
Australian Airports Association chief executive Simon Westaway said he was concerned smaller airports would bear the burden.
"Many smaller and regional airports do not have the staff or resources to implement or fund such measures and already face serious financial challenges," he said.
"We are calling for a sensible passenger threshold of one million passengers annually. This would still cover more than 90 per cent of travellers."
The transport minister said the upcoming standards would be accompanied by an ombudsman scheme and a regulator.
The ombudsman scheme would help customers who are unable to resolve complaints directly with an airline.
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