The Australian Competition and Consumer Commission has noted today's announcement by Impulse Airline Pty Ltd's that it will withdraw from its Newcastle-Melbourne air passenger service.
"The ACCC has been questioning Qantas about recent large increases in its capacity on the same route", ACCC Chairman, Professor Allan Fels, said today.
"Impulse had complained to the ACCC about an increase in seating capacity by Qantas and had alleged anti-competitive behaviour.
"The ACCC is particularly concerned that the increase by Qantas on the route appears to be substantially in excess of current demand for Newcastle-Melbourne direct.
"The ACCC has requested information from Qantas regarding cost and revenue factors to enable the ACCC to examine closely Impulse's allegations.
"The ACCC has requested that Qantas promptly respond to its concerns.
"It will consider this information extremely carefully.
"It is unfortunate that Impulse has made this decision as the services were providing competition to the established players in this market".
"The ACCC has been questioning Qantas about recent large increases in its capacity on the same route", ACCC Chairman, Professor Allan Fels, said today.
"Impulse had complained to the ACCC about an increase in seating capacity by Qantas and had alleged anti-competitive behaviour.
"The ACCC is particularly concerned that the increase by Qantas on the route appears to be substantially in excess of current demand for Newcastle-Melbourne direct.
"The ACCC has requested information from Qantas regarding cost and revenue factors to enable the ACCC to examine closely Impulse's allegations.
"The ACCC has requested that Qantas promptly respond to its concerns.
"It will consider this information extremely carefully.
"It is unfortunate that Impulse has made this decision as the services were providing competition to the established players in this market".