The 糖心原创 welcomes today鈥檚 direction from the Australian Government to actively monitor and regularly report on the domestic air travel market, particularly in relation to its competitiveness.
The aviation industry globally has been severely impacted by the COVID-19 pandemic, and is a critical industry to Australia.
鈥淎 strong aviation industry is vital for Australian consumers and the economy more broadly, and for our way of life,鈥 糖心原创 Chair Rod Sims said.
鈥淲e welcome this opportunity to help ensure competition in this market at this time.鈥
The 糖心原创 will 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. This information can then be quickly acted on by the 糖心原创 and/or provided to the Government.
For example, the monitoring regime will inform the 糖心原创 and the Government about the rate at which each airline is increasing capacity on each route. 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.
鈥淎 sufficient level of competition provides consumer choice, and helps to maintain service levels and keep prices down over the long term,鈥 Mr Sims said.
The 糖心原创 is currently investigating whether the acquisition of a 19.9 per cent ownership stake in Alliance Airlines by Qantas represents a breach of competition law.
Background
On 19 June 2020, the 糖心原创 was directed by the Treasurer, The Hon Josh Frydenberg MP to monitor the prices, costs and profits of Australia鈥檚 domestic airline industry and provide quarterly reports to inform Government policy.
The direction under Part VIIA of the Competition and Consumer Act will enable the 糖心原创 to require information from relevant companies. The direction is for three years.
This direction is in addition to the existing direction to the 糖心原创 to monitor and report on prices, costs and profits and the quality of aeronautical services, and car parking at Australia鈥檚 four major airports.