Australia’s Competition Watchdog to Monitor Airfares After Airline Withdrawals

Australia’s competition regulator has announced it will be closely monitoring domestic airfares between major cities following the recent withdrawal of Regional Express (Rex) from the market. The local carrier entered voluntary administration last month, making it the second domestic airline to face significant challenges this year.

According to Reuters, Rex’s withdrawal follows that of low-cost airline Bonza, which suspended its flights in April to reassess the viability of its business operations. The exit of these two airlines from metropolitan routes has left no domestic air route with more than two competing airline groups as of July, the Australian Competition and Consumer Commission (ACCC) revealed.

The ACCC’s Commissioner, Anna Brakey, emphasized the importance of vigilance in the current situation. “With the suspension of Rex’s services, we are closely monitoring airfares and remain vigilant to any increases in prices on routes that Rex is no longer flying on,” she said in a statement, per Reuters.

The regulator expressed concern that if Rex is unable to resume its services soon, consumers may lose out on the benefits of a more competitive domestic market. The ACCC’s monitoring efforts are aimed at ensuring that the reduction in competition does not lead to higher prices for travelers on key domestic routes.