The Albanese Government has rolled out a directive for the Australian Competition and Consumer Commission (ACCC) to scrutinise domestic air passenger services in the country. This move aims to fortify the competitive landscape of Australia’s airline industry and offer consumers better choices and protections.
This isn’t the ACCC’s first foray into the aviation sector. The commission has an established role in monitoring specific airports and is continually engaged with the aviation industry as part of its central consumer protection duties. The new directive is essentially a layer added to its existing responsibilities, further embedding its influence in the sector.
With the cost of living reaching for the clouds, the government hopes that a competitive airline industry will act as a counterweight, putting downward pressure on prices. The ACCC’s job here is to ensure airlines compete fairly, calling out any inappropriate market behaviour and offering continued transparency. This is particularly important as new and expanding airlines are still trying to gain a foothold in the domestic market.
The legal foundation for this initiative comes from section 95ZE of the Competition and Consumer Act 2010. Under this directive, the ACCC will have to keep an eye on prices, costs, and profits in the domestic air passenger sector. But they won’t just be crunching numbers. The commission will also scrutinise the level of capacity airlines provide on each route and the overall performance of the industry, including cancellations and delays. Moreover, the directive will focus on making the aviation sector more accessible for people with disabilities.
This approach contrasts sharply with the previous government’s handling of the issue. Although 12 reports were prepared under the earlier administration, pointing out declining service standards and rising prices, no concrete action was taken. The Albanese Government, on the other hand, plans to use the ACCC’s monitoring to help shape the Aviation White Paper, which will set the policy direction for the sector until The Treasury Competition Taskforce is collaborating closely with the Aviation White Paper team to determine the competition reforms needed to build a more resilient airline industry. Besides pushing for better pricing and service, the White Paper will also explore ways to strengthen consumer protections and improve complaint-handling processes.
The directive will be in place for three years, and quarterly reports will be released to keep the public informed. This proactive step by the government shows an intent to help the airline industry be competitive, cost-effective, and commercially viable, keeping consumer interests in sharp focus.
The Albanese Government’s strategy for aviation seems to be one of active intervention and long-term planning. By directing the ACCC to keep its eyes on the skies, the government is taking steps to ensure that Australia’s airline industry doesn’t just soar but also remains grounded in the principles of fair competition and consumer protection.
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