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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.
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