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"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 and acted on," ACCC Chair
"A lot has changed since the Treasurer directed us to take on this new role in June. Domestic airline travel was expected to be on its way to returning to more regular operations by now but infection spikes in some states and tighter border restrictions have delayed the recovery."
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"Air travel is vital for the economy in a country as large and geographically dispersed as
The ACCC's approach to protecting competition in the sector will include monitoring, reporting, advocacy, investigation and, where necessary, enforcement action.
The report outlines the types of activities that could damage competition and for which the ACCC will be watching as the industry moves towards more regular operations. These activities include airlines entering into agreements with suppliers to prevent competitors from offering services, or altering schedules to prevent a competitor entering the market.
Central to protecting competition will be the ACCC's analysis of monthly flight capacity, passenger numbers, and revenue data from
The ACCC can obtain information from airlines using its formal data gathering powers under the Competition and Consumer Act.
"We will act if we identify behaviour that damages competition, either arising from the conduct by airlines directly or through their arrangements with others,"
"The ACCC will be reporting to government regularly and this will assist with informed policy development, particularly if we observe signs that competition in the sector is not effective."
The report reveals that airline downsizing and expansion is happening concurrently as a result of the COVID-19 pandemic.
Market changes have created opportunities for some airlines to expand into the domestic network as the availability of infrastructure, aircraft, pilots and fuel has improved. At the same time, major airlines
"This new airline monitoring role for the ACCC is focused on competition, but it sits alongside all of our other work on disrupted travel and consumer guarantees,"
Australian domestic air services -
Source:
Note: Data is for regular public transport (i.e. commercial flight operations on fixed schedules and specific routes available to the general public) and does not include charter operations.
Background
On
The direction under Part VIIA of the Competition and Consumer Act will enable the ACCC to require information from relevant companies. The direction is for three years.
The ACCC has sought information from
Use this form to make a general enquiry. Media enquiries: Media team - 1300 138 917
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(C) 2020 M2 COMMUNICATIONS, source