https://www.accc.gov.au
The draft determination proposes the grant of authorisation on broadly the same terms as the interim authorisation granted in March. The authorisation will extend until
"The ACCC recognises that airlines are still facing significant challenges, including exceptionally low demand, due to the ongoing impacts of the COVID-19 pandemic," ACCC Deputy Chair
"Allowing the airlines to coordinate in this way will contribute to the ongoing provision of services for passengers flying on these 10 regional routes."
The coordination may involve arrangements such as each carrier on a route operating one daily service, with revenue shared between carriers, or an operator suspending operation on a route to allow another carrier to maintain a viable service.
"We acknowledge that such coordination between airline competitors in this way would normally raise competition concerns. However, the extraordinary circumstances mean that coordination is in the public interest given the relatively short period for which it will be authorised, and the conditions of the proposed authorisation,"
Importantly, the proposed authorisation is conditional on airlines charging fares no higher than those in place on
"We anticipate that the arrangements will help support the continuity of essential air services for regional communities on the relevant routes while the pandemic is significantly affecting air travel,"
The ACCC will now seek submissions on the draft determination. Details on how to make a submission, including a statement of reasons, are available on the ACCC's public register at
Notes to editors
ACCC authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010.
Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
Background
The relevant routes and the current operators on these routes are:
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- Cairns -Townsville (Rex and
- Townville -
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(C) 2020 M2 COMMUNICATIONS, source