Market power leads to airline’s misbehaving, report finds

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A lack of competition among airlines is responsible for a higher rate of law breaches in aviation than more competitive industries, a report from think-tank e61 found.

A lack of competition among airlines is responsible for a higher rate of law breaches in aviation than in more competitive industries, a report from independent economic think-tank e61 reveals.

“The national interest is one of those terms which is typically not defined in legislation that allows the decision maker to take a broad view right across the economy and across society,” he told the National Press Club.“We’re keen to see more competition and I know there’s a range of airlines that are looking to fly more into Australia.” He added that Qatar could still fly into less in-demand destinations such as Canberra.

“We find the largest firms in concentrated industries are less likely to be displaced from their positions over time,” e61’sThe report said overall, the findings “raised concerns” about the rise of market power held by dominant players in concentrated markets, which it concluded was “unlikely to be purely benign”.

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