ACCC keeping ‘vigilant’ watch on Qantas and Virgin airfares after Rex retreat

The ACCC says that Rex’s exit from major city routes, after Bonza’s collapse and Rex entered administration, means lower air fares could now end. Photograph: Bloomberg/Getty Images

The competition watchdog has told Qantas and Virgin it will keep a “vigilant” eye on their air fares, as it warns the dominant carriers could capitalise on the axing of Rex’s competing inter-city flights by increasing ticket prices on high demand routes.

The Australian Competition and Consumer Commission (ACCC) issued a bleak assessment of airline competition when releasing its latest quarterly domestic aviation monitoring report – a government-ordered exercise – on Thursday, its first since the liquidation of budget carrier Bonza in July and Rex’s entry into voluntary administration.