Australia’s competition regulator to monitor domestic airfares, profits By Reuters

Australia's competition regulator to monitor domestic airfares, profits By Reuters


2/2
© Reuters. FILE PHOTO: Qantas planes are seen at Kingsford Smith International Airport in Sydney

2/2

SYDNEY (Reuters) – Australia’s competition regulator will monitor domestic airfares and profits for three years, increasing scrutiny as the industry begins a slow recovery from the coronavirus pandemic and Virgin Australia Holdings Ltd (AX:) seeks a buyer.

The federal government said on Friday the Australian Competition and Consumer Commission (ACCC) will monitor prices, costs and profits, as well as provide another avenue for complaints about anti-competitive conduct.

“A key matter covered will be the level of capacity the airlines are putting on each route and whether this is occurring in a way that may damage competition,” Treasurer Josh Frydenberg said in a statement.

Qantas Airways Ltd (AX:), which holds almost two thirds of the domestic aviation market, said earlier on Friday it would offer 10,000 one-way seats on low-cost arm Jetstar for A$19 ($13) to help support a tourism recovery as Australia unwinds coronavirus restrictions and state borders reopen.

“We have a lot of aircraft on the ground with fixed costs attached to them, so if we can put some of them back in the air by offering special fares, it’s a positive for us, for our people, for tourism and for consumers,” Qantas Chief Executive Alan Joyce said in a statement.

Rival Virgin Australia entered voluntary administration in April, owing nearly A$7 billion to creditors. The airline is expected to emerge a smaller airline under a new owner, in a move that analysts have said could benefit Qantas.

Binding bids for Virgin Australia from finalists Bain Capital and Cyrus Capital Partners are due on Monday and a final deal would need to be approved at a creditor’s meeting in August.

The ACCC will report at least quarterly on its findings, the government said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *


About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.


CONTACT US

CALL US ANYTIME