The Australian Competition & Consumer Commission (ACCC) are watching Australian airlines after Qantas and Virgin claimed they have no savings to pass on to travellers in the wake of the repeal of the carbon tax.
ACCC chairman Rod Sims declared his agency is “very sceptical” about the airlines’ claims after the two carriers were amongst the group of companies which went public with claims of carbon tax impacts back in July 2012.
Both Qantas and Virgin Australia followed with fare increases from $1.80 and $6.90 per flight (Qantas) and $1.50-$6 per flight (Virgin), however due to what they claimed as intense competition, could not pass on the carbon price to customers.
Sims remains sceptical, saying “the carbon tax comes in, you impose a surcharge of $3-$6 per trip, so it’s reasonable to expect that to come off.”
The Abbott government has justified scrapping the two-year old carbon price due to cost-of-living savings.
Companies found to have made windfall gains can face fines up to $1.1 million per offence, something the Government will enforce, spending about $10 million to beef up ACCC staff.
