Are airlines allowed to involuntarily reassign a seat on the basis of gender in Australia?

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Airlines have the right to assign / reassign seats as they see fit, for pretty much any reason they deem proper. Most every airline has a clause in their Contract of Carriage, that states seat assignments are not guaranteed and subject to change without notice.

In your linked example, like most disagreements, there are two sides. The airline moved a passenger to accommodate the religious beliefs and taboos of two passengers. The displaced passenger decided to make it about gender discrimination. The article doesn't mention if the new seat was poorer quality or a hardship for the traveler, rather the issue is more about a ..... who didn't get her favorite seat.

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