An axed airline value gouging monitor needs to be reinstated, in line with a recent push from the Coalition.
The Australian Competition and Consumer Commission was directed to watch the home aviation market, together with airline revenue margins, by the previous authorities in 2020.
But after three years, the buyer watchdog’s elevated scrutiny ceased in June after the Albanese authorities opted to not prolong funding.
On Wednesday, Nationals senator Bridget McKenzie and Liberal Dean Smith reignited the decision to have the oversight reinstated.
“The watchdog clearly said that ongoing monitoring would boost transparency and scrutiny of an industry in which new or growing airlines are trying to get established,” Senator Smith stated.
“This is totally at odds with the Albanese Government’s supposed commitment to both transparency and making life cheaper for Australians.”
Last month, the federal government backflipped to incorporate the airline sector in its two-year overview into Australia’s competitors framework, regardless of initially ruling it out.
The invoice, launched to the senate on Wednesday, would replicate the monitoring regime begun below the Morrison authorities.
The monitoring would observe costs, prices and income regarding the provision of home air passenger transport companies, and of associated items and companies, for 3 years.
If the invoice finds help, the ACCC could be required to publish a report of its findings at the least as soon as each quarter.
The Qantas-Virgin duopoly controls 95 per cent of the home market. The ACCC in June stated the duopoly has made it “one of the most highly concentrated industries in Australia”.
“The lack of effective competition over the last decade has resulted in underwhelming outcomes for consumers in terms of airfares, reliability of services and customer service,” the watchdog’s last report stated.
The intervention comes amid a political storm about Transport Minister Catherine King’s choice to dam Qatar Airways request to double its flight capability to Australia.
Senator McKenzie renewed her criticism that the federal government was operating “a protection racket for Qantas”.
“The question remains, why doesn’t the Albanese Government want to provide cheaper airfares for the travelling public in a cost-of-living crisis?” she stated.
Ms King’s workplace was contacted for remark.
Source: www.perthnow.com.au
