A lack of “effective competition in the sector” is behind Australia’s consumer watchdog urging the Federal Government to establish an independent ombudsman into airlines.

The Australian Competition and Consumer Commission says one-sided handling of delayed and cancelled flights is hurting passenger confidence in national airlines.

Press PLAY to hear more on potential plans to crack down on airlines

ACCC chair Gina Cass-Gottlieb told Millsy and Karl on 6PR Mornings cancellations, delays and unpredictable price rises are creating a troubling situation.

“The levels of straight-out cancellations are nearly twice the long-term averages, and they produce significant costs,” Ms Cass-Gottlieb said.