The Australian Airports Association (AAA) says the data in the ACCC’s Domestic Airline Competition report for May reinforces the need for stronger policy settings to support more airline competition, protect regional services, and maintain momentum in the domestic market.
A new report from the ACCC confirms that competition in Australia’s domestic airline market has stalled, with more than 98 per cent of passenger traffic now controlled by just two major carriers.
The regulator’s report for May describes the current landscape as one of “minimal domestic competition”, raising concerns about affordability and connectivity.
“The domestic airline market in Australia doesn’t have any new challengers on the horizon, and we’re seeing reduced choice available to the travelling public,” AAA CEO Simon Westaway said.
“The ACCC report highlights that airlines have not increased capacity in line with demand. There are fewer seats, fewer flights and less flexibility for Australians who want to explore their own country – whether for business, leisure, or to access essential services.”
“International airline competition, by contrast, is gaining momentum due to the strategic collaboration between Australian airports and stakeholders,” he said.
“This is a critical time for regional connectivity. The funding deadline for Rex Airlines is fast approaching, and many regional routes remain on a knife’s edge.
“The continued fragility of key regional carriers like Rex highlights just how vulnerable these services are without sustained support.
“We need to see national aviation policies that drive growth and enable long-term investment, particularly across regional infrastructure, border systems, and airport capacity.
Westaway welcomed the Federal Government’s ongoing reform efforts from the Aviation White Paper, including improvements to slot management at Sydney Airport and the Aviation Industry Ombuds Scheme.
“These are positive steps to improve competition, but more is needed to reinvigorate the domestic market and ensure it supports Australia’s broader economic and community needs,” he said.
“The airline monitoring reports are critical to keeping the sector moving in the right direction, and we’d like to see them become a permanent feature of the national aviation policy toolkit.”
