Australia’s competition watchdog declared that the domestic airline industry sits at a “critical juncture,” with the lack of competition costing Aussies with more expensive airfares and declining customer service quality.
In the last two decades, over 90 percent of domestic passengers flew with either Qantas or Virgin Australia.
“Domestic aviation is one of the most concentrated industries in Australia, barring only natural monopolies such as electricity grids and rail networks,” Australian Competition and Consumer Commission (ACCC) Chair Gina Cass-Gottlieb said.
“Without a real threat of losing passengers to other airlines, the Qantas and Virgin Australia airline groups have had less incentive to offer attractive airfares, develop more direct routes, operate more reliable services, and invest in systems to provide high levels of customer service.”…