The ACCC has issued a final determination granting conditional authorisation to enable Regional Express Pty Ltd (Rex) to coordinate flight schedules with Qantas and/or Virgin Australia to efficiently manage capacity, and share revenue as necessary, on 10 regional routes in response to the collapse in demand due to the COVID-19 pandemic.
The ACCC notes Rex, Qantas and Virgin Australia currently benefit from government funding arrangements which support a minimum domestic network and that no coordination has occurred since Rex was granted interim authorisation in March. However, the ACCC considers once the funding arrangements are removed, the ability for the airlines to coordinate and share revenue is likely to result in public benefits by supporting the continuity of air services to certain regions during the COVID-19 pandemic and enabling better schedule spread, which provides greater choice for passengers flying to and from those regional destinations.
Authorisation is granted until 30 June 2021.
The authorisation is conditional on airlines charging fares no higher than those in place on 1 February 2020. The authorisation is also subject to reporting conditions, which will allow the ACCC to closely monitor any cooperation.
Further information about the ACCC’s decision, including the reporting obligations imposed, is available on the ACCC’s public register at: Regional Express Pty Ltd.