The Treasurer has directed the Australian Competition and Consumer Commission (ACCC) to monitor Australia’s domestic air passenger services for the next three years and report quarterly on prices, costs and the profits of the industry.
Chair of the ACCC, Rod Sims said the Commission would be looking out for any early signs of damage to competition in the domestic airline industry which could harm the long-term interests of consumers.
“The aviation industry globally has been severely impacted by the COVID-19 pandemic, and is a critical industry to Australia,” Mr Sims said.
“A strong aviation industry is vital for Australian consumers and the economy more broadly, and for our way of life,” he said.
“We welcome this opportunity to help ensure competition in this market at this time.”
Mr Sims said early signs of damage to competition in the industry could be quickly acted upon by the ACCC and/or provided to the Government.
“For example, the monitoring regime will inform the ACCC and the Government about the rate at which each airline is increasing capacity on each route,” he said.
“This will provide insight into whether an airline could be adding additional flights to a route in an attempt to damage a competitor or drive them off the route.”
He said a sufficient level of competition provided consumer choice, helped to maintain service levels and keep prices down over the long term.
