The ACCC has fired a warning shot to Qantas and Virgin, saying it has a close eye on prices after Bonza’s collapse and Rex’s uncertain future.
When Rex started flying between the capital cities in 2021, prices on those routes dropped 25 per cent.
The consumer watchdog has reaffirmed its close watch on Qantas and Virgin in a Domestic Airline Competition report, released on Thursday, in the wake of Rex entering voluntary administration and cancelling its city-to-city routes.
Before administrators were called in, Rex raised issue with the way slots for peak times at Sydney airport were distributed, contending more spots at busy times would help the airline compete.
The latest ACCC report finds some merit in Rex’s position.
“Improved access to slots at Sydney airport may have assisted Rex in building up its intercity operations,” it says.
“However, Rex going into administration also reflects the broader challenges of expanding an airline beyond the slot scheme.”
Rex had too few…