Australia’s airline industry is famously duopolistic. Just two companies – Qantas and Virgin Australia – service 98% of the domestic passenger market. That’s not for a lack of other companies having tried to secure a foothold, over many decades.
In 2024 alone, we’ve seen the high-profile collapse of both Bonza and Rex, airlines that once ignited hopes for much greater competition in the sector. Now, we’re beginning to see the predictable effects of their exit.
According to a quarterly report released on Tuesday by the Australian Competition and Consumer Commission (ACCC), domestic airfares on major city routes increased by 13.3% to September after Rex Airlines halted its capital city services at the end of July.
