ACCC announcements reveal mixed feelings in aviation industry

ACCC announcements reveal mixed feelings in aviation industry

Recent decisions by the Australian Competition and Consumer Commission in relation to airline tie ups and scrutiny of airlines have caused a stir in the industry.

Qantas/Emirates tie up set to be extended

The ACCC has given an interim green light to tie up that the Australian Federation of Travel Agents (AFTA) says will give the airlines a more than a 50 per cent holding of market routes on multiple key routes.

“This activity is enabling airlines to become the sole price makers and therefore increase the margins on their cheapest products with no pressure from the market,” AFTA, said.

The ACCC did however say that the interim authorisation could be reviewed at any time Qantas and Emirates for now continue to their work together.

“The interim authorisation commences immediately and allows the parties to continue coordinating their operations while the ACCC considers and evaluates the merits of the substantive application for authorisation,” commissioner, ACCC, Anna Brakey, said.

Qantas CEO Alan Joyce and Emirates President Tim Clark .(AP Photo/Rob Griffith)

ACCC to finish scrutiny of Aussie airlines in June

The Australian Competition and Consumer Commission (ACCC) has announced it will end its program of monitoring airlines fares, delays, lost baggage claims.

The ACCC begun watching the industry in 2020 to ensure a healthy competition remained. Reporting on market shares, call centre hold time, flight delays and other key performance indicators were all studied by the government body.

Airlines have been posting huge profit margins in recent months, Qantas, for example is $1billion in the green, but not all in the industry are happy about the end of an all watching ACCC eye.

“leaving young kids unsupervised in a candy store and hoping everything’s going to be okay,” CEO, Bonza, Tim Jordan, said.

“The ACCC mechanism was put in place to ensure dominant carriers don’t take advantage of their market position and that same market dominance still largely exists today.

A Rex Airlines spokesperson was also concerned.

“At a time when Qantas is gouging passengers with the highest ticket prices in history it’s vital the government continues to closely monitor airfares.”

A rex spokesperson also had strong words in relation to Qantas.

“At a time when Qantas is gouging passengers with the highest ticket prices in history it’s vital the government continues to closely monitor airfares.”

 

 

 

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