Australian competition regulator investigating Qantas
The Australian Competition and Consumer Commission (ACCC) said Qantas is the subject of a new anti-trust inquiry, after an official complaint by regional competitor Rex.
ACCC Chairman Rod Sims said Rex filed a complaint alleging Qantas is attempting to dump cheap fares on regional routes Rex serves to drive its smaller rival out.
It comes as Rex (Regional Express) announced plans to operate jet service on key routes to Melbourne, Sydney and Canberra in early 2021
This pits it in direct competition with Australia’s three main carriers, Qantas, Jetstar and Virgin Australia.
Sims told Reuters the current Covid crisis has made it more difficult to prove if an airline is intentionally flooding the market with cheap fares.
"We have to see if these are loss-making flights, or not, and of course at the moment … loss-making is tricky. If they can cover their cash costs, it’s pretty hard to say you can’t fly there," Sims said.
Qantas’ regional arm Qantaslink says its move into Rex’ territory is a normal business decision aimed at growing its presence in the regions.
Rex doesn’t have the right to ‘maintain a monopoly indefinitely’ on regional routes, it said.
"We’re focused on adding new routes to regions that we think have genuine growth potential. We expect these additional flights to stimulate demand to these towns," said Qantaslink CEO John Gissing.
Written by Ray Montgomery, Asia Editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Strike action set to cause travel chaos at Brussels airports