Australia’s competition regulator has said it will closely monitor domestic airfares between major cities following the recent exit of Regional Express (Rex) from the market. The local carrier filed for voluntary insolvency last month, becoming the second domestic airline to face significant challenges this year.
According to Reuters, Rex’s withdrawal follows that of budget airline Bonza, which suspended flights in April to reassess the viability of its operations. Following the withdrawal of these two airlines from metropolitan routes, there has been no domestic air service involving more than two competing airline groups since July, the Australian Competition and Consumer Commission (ACCC) said.
ACCC Commissioner Anna Brakey stressed the importance of being vigilant in the current situation. “As Rex has suspended its services, we are closely monitoring airfares and remain vigilant against price increases on routes that Rex no longer flies,” she said in a statement to Reuters.
The regulator expressed concern that if Rex cannot restart its services soon, consumers could lose the benefits of a more competitive domestic market. The ACCC’s monitoring efforts are aimed at ensuring that the reduction in competition does not lead to higher prices for travellers on key domestic routes.
