The ACCC added in its report that cancellation and delay rates, problematic even before the disruption of the pandemic, were also a sign of growing congestion at our airports.
Cancellations and delays are not always the fault of airlines but are often a side effect of the complicated aviation supply chain, which makes it vulnerable to a range of factors, including bad weather and staff shortages.
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Recent staffing issues at Airservices Australia – the government body responsible for overseeing landings, take-offs and in-air safety – have made the issue worse since the pandemic. Meanwhile, the complicated regulations at Sydney Airport, which is subject to a curfew and movement caps, remain a factor in exacerbating a delay or forcing a cancellation.
The ACCC’s final report has highlighted an ongoing dip in airfares, which continue to fall from their 15-year peak in December. While the lower cost of jet fuel has taken some heat off fares, some routes continue to be outliers. The price of the Coffs Harbour to Sydney route tripled to $348 this month, while several routes including Brisbane to Darwin and Launceston to Sydney have more than doubled.
The ACCC said it will continue to watch the behaviour of Virgin and Qantas in a bid to give Rex and Bonza a fighting chance to pick up more passengers, and will intervene if any anticompetitive behaviour occurs.
“Should Rex and Bonza not succeed and withdraw from the market, it will not just result in less competition in the near term but will likely deter new airlines from attempting to enter the domestic industry for many years,” the regulator said.
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