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Qantas' Decision to Cut Capacity Could Have Led to Inflation, Says Allan Fels

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Qantas,Capacity Cut,Inflation

Former ACCC chair Allan Fels has stated that Qantas' decision to reduce domestic flight capacity and increase air fares in 2022 may have contributed to inflation and led to the Reserve Bank raising interest rates. The lack of competition in the aviation industry was strongly criticized in the ACTU inquiry into price gouging.

Qantas’ decision to reduce its domestic flight capacity and increase air fares in 2022 may have contributed to inflation and led the Reserve Bank to raise interest rates, a union inquiry into price gouging has found. Former Australian Competition and Consumer Commission (ACCC) chair Allan Fels, who led the Australian Council of Trade Unions’ commissioned inquiry, was scathing of the effects a lack of competition in aviation was having on consumers.

“The duopoly in the aviation sector in Australia is dominated by Qantas and there is price gouging by Qantas,” he said

 

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