The ACCC wants Rex and Bonza to step up their game to break Qantas and Virgin's market dominance.
👉 Background: Qantas and Virgin Australia have largely been ruling the roost in Australia's domestic flight market for over two decades (except for Virgin's hot-minute in administration). In fact, over the last 20 years, they've flown an average of 90% of the domestic passengers.
👉 What happened: In April this year, Qantas and Virgin flew 94 per cent of all domestic passengers. That's despite the fact that Rex and Bonza have both entered the group chat... but clearly not getting a word in.
👉 What else: Now, the ACCC reckons Rex and Bonza need to step up their game to shape up this market dominance. They had a measly 4.8% and 1.2% of passengers in April respectively.
💡Competition in any industry is vital - but even more so when it impacts almost every single Australian. Over 21 million Australian passengers travelled in 2022, so having strong competition matters.
💡Without a real threat, Qantas and Virgin Australia have had less incentive to offer better airfare prices, less incentive for reliable services and less incentive to invest in better customer service systems.
💡The ACCC has got its fingers and toes crossed that Rex and Bonza can grow significantly... Ultimately so they can challenge that sticky dominance of Qantas and Virgin Australia.
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