REGIONAL Express (Rex) may be able to continue coordinating flight schedules with Qantas and Virgin Australia on a range of regional routes until 30 Jun 2021, with the Australian Competition and Consumer Commission (ACCC) releasing a proposed authorisation today.
The slated green light applies to 10 regional routes, including from Sydney to Wagga, Dubo, Albury and Armidale.
Also included are Melbourne-Mildura, from Adelaide to Port Lincoln, Whyalla and Kangaroo Island and from Townsville to Cairns and Mt Isa.
The ACCC acknowledged that coordination between airline competitors in this way would normally raise competition concerns but noted airlines were still facing significant challenges due to the COVID-19 pandemic.
“Allowing the airlines to coordinate in this way will contribute to the ongoing provision of services for passengers flying on these 10 regional routes,” ACCC Deputy Chair Mick Keogh said.
“The extraordinary circumstances mean that coordination is in the public interest given the relatively short period for which it will be authorised, and the conditions of the proposed authorisation.”
The draft determination is on broadly the same terms as the interim authorisation granted in Mar (TD 27 Mar).
It is also is conditional on airlines charging fares no higher than those in place on 01 Feb and reporting conditions.
The ACCC will now seek submissions on the draft determination, with a final determination scheduled to be released in Sep.
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Source: traveldaily