
By aviation writer Scott Mayman
Assistant Competition Minister and federal member for Fenner Andrew Leigh has used a speech in Melbourne to renew calls for greater competition in the airline industry.
He referred to signs that the intensity of competition has weakened over recent decades, including the aviation industry – and says, many Australians have suffered from a lack of competition.
He says Darwin residents often found it cheaper to fly to Singapore, than to Sydney – even though the international flight is longer than the domestic one.
Leigh’s comment follows a prediction by aviation analyst Peter Harbison that airfares would go up because there’s very little prospect of downward pressure on fares due to a shortage of capacity, among other issues.
Harbison described Qantas as the “800 pound gorilla, which can basically do what it likes in the market”.
He says Qantas was up against Virgin, Rex and Bonza, which “don’t want to rock the boat” as they try to recover.
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