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Australia's competition regulator says local aviation market lacks competition
June 6th 2023
Australia's competition regulator said consumers in the country were paying higher airfares and receiving poor service amid a lack of effective competition in the local market. Read More » The Australian Competition and Consumer Commission's (ACCC) final Airline Competition in Australia report noted the Qantas and Virgin Australia (VA) airline groups flew 94% of all domestic passengers in April, while the figure for the past two decades stood at 90%. “Domestic aviation is one of the most concentrated industries in Australia, barring only natural monopolies such as electricity grids and rail networks,” ACCC chair, Gina Cass-Gottlieb, said. “Without a real threat of losing passengers to other airlines, the Qantas and Virgin Australia airline groups have had less incentive to offer attractive airfares, develop more direct routes, operate more reliable services, and invest in systems to provide high levels of customer service." While the recent entry of Bonza and expansion of Regional Express onto main capital city routes had been positive for competition, Cass Gottlieb said their share of the market was small and there were barriers to growth.
