Australia’s consumer watchdog has slammed airline companies after a recent report revealed domestic flight prices have spiked by as much as 95 per cent since Regional Express (Rex) fell into voluntary administration earlier this year.
Shortly after Rex entered voluntary administration in July and suspended its flights in major capital cities, flight prices on these routes soared exponentially.
As of August, 667 employees at Rex Airlines have been made redundant following the airline’s placement into voluntary administration. Ernst & Young (EY) were appointed as administrators to oversee the company’s operations during the process.
Qantas and Virgin profit from Rex’s demise
According to the Australian Competition and Consumer Commission (ACCC), Rex’s absence on these key routes has allowed major airlines like Qantas and Virgin to increase prices, as airline competition has dwindled.
The ACCC report highlighted significant fare hikes on several popular routes, particularly those offering “best discount economy” tickets. For instance, the cost of flights from Adelaide to Melbourne soared by a staggering 95%, reaching $296, while fares from Melbourne to the Gold Coast…