THE Australian Competition and Consumer Commission (ACCC) has warned it will be carefully monitoring any anticompetitive activities carried out by domestic airlines, such as capacity dumping and predatory pricing.
In a new report released today at the behest of Federal Treasurer Josh Frydenberg back in Apr (TD 24 Apr), the consumer watchdog outlined the approach it will take to protect the rights of passengers during the challenging COVID-19 period using enhanced data gathering powers.
Analysis of monthly flight capacity, passenger numbers, and revenue data from major players Qantas, Virgin Australia and Rex will play a key role in its fact-finding activities, with the hoarding of airport slots, selling tickets below cost for the purposes of stifling competitors, and deliberately increasing capacity beyond expected demand, all high on the hit-list of anticompetitive behaviour.
ACCC Chair Rod Sims said the watchdog’s role in preserving fair competition in the domestic aviation sector would be especially important as airlines started to rebound from the travel shutdown moving forward.
“COVID-19 has created some of the most difficult market conditions in Australian aviation history and it’s critical that when the industry starts scaling up domestic flying, any potential damage to competition is identified quickly,” he said.
“Australia’s domestic airline industry over the next few years may look quite different to the one that went into 2020.”
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Source: traveldaily