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Reduced competition boosted Qantas, Virgin Australia earnings: Watchdog

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          🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
The Australian Competition and Consumer Commission (ACCC) has found that the "absence of competitive pressure" a key factor for strong financial results of the country's two largest operators.
The Australian Competition and Consumer Commission (ACCC) reported that reduced competition in the domestic airline market significantly boosted the earnings of Qantas and Virgin Australia in the second half of 2022. The ACCC's latest airline competition monitoring report highlighted that the two airlines, which together control over 90% of the domestic market, saw their revenue per passenger increase by 20% compared to pre-Covid levels, while capacity remained 11% below 2019 levels. The report also noted that the exit of smaller competitors like Rex and Bonza from certain routes contributed to the duopoly's increased market power, leading to higher airfares and fewer choices for consumers. The ACCC expressed concerns about the lack of competitive pressure and urged for measures to enhance competition in the sector.

Read the Full Flightglobal Article at:
[ https://www.flightglobal.com/airlines/reduced-competition-boosted-qantas-virgin-australia-earnings-watchdog/163039.article ]