More than two weeks after announcing it was reviving an airline industry monitoring program, the Albanese government is yet to formally direct the competition watchdog to conduct the investigation.
After months of scrutiny into Qantas’s influence in the government’s decision to block rival Qatar Airways’ push to boost its flights to Australia, the Greens and independent senator David Pocock in October knocked back a proposal to extend a Senate inquiry on the topic.
Labor was only able to quash the extension of the Senate inquiry – which the transport minister, Catherine King, had labelled a political stunt – by striking a deal with Pocock in which it agreed to recommence the Australian Competition and Consumer Commission’s (ACCC’s) flight monitoring regime that it had let lapse in June.
The monitoring program had begun in June 2020, when the Morrison government directed the ACCC to monitor the domestic industry for anti-competitive behaviour at a time of crisis. That followed Virgin Australia entering administration and the loss of budget carrier Tiger, as well as broader disruptions from pandemic border closures threatening other airlines operations.
However, as the three-year term of the monitoring direction entered its final year, the quarterly reports released by the watchdog commented on international operations and examined more pressing consumer issues, including putting airlines on notice over concerns of price-gouging.
A broad coalition of aviation industry groups, including airports, smaller airlines and former and current ACCC heads, had called for the continuation of the monitoring program, as questions about anti-competitive behaviour and high air fares surfaced throughout the year.
On 18 October, after Labor struck the deal to stop the extension of the Senate inquiry into the Qatar Airways decision, the treasurer, Jim Chalmers, announced he would direct the ACCC to revive the monitoring program.
“ACCC market scrutiny will help ensure airlines compete on their merits, bring to light any inappropriate market conduct should it occur, and provide continued transparency at a time when new and expanding airlines are still trying to establish themselves,” Chalmers and King said in a joint statement.
However, as of Thursday, the government was yet to formally direct the ACCC to conduct the inquiry.
An ACCC spokesperson said the details were still being worked out with Treasury. Guardian Australia understands it will be designed to have the ability to retrospectively monitor the industry since 1 July, when the government let it lapse.
The opposition transport spokesperson, Bridget McKenzie, said: “The ACCC is on record that it is ready to re-establish the monitoring so there is no excuse for the Albanese government to continue dragging their feet on the matter.
“Making an announcement is one thing and taking action is another, and this is where the government continues to fail.”
It comes as the industry awaits key action from the government before the end of the year.
The ACCC chair, Gina Cass-Gottlieb, as well as Sydney airport and other groups, are still calling on the government to respond to recommendations flagged by a government-ordered review from 2021 to a crackdown on larger airlines such as Qantas and Virgin strategically scheduling and then cancelling flights to shut out competition at Sydney airport – something they staunchly deny. In early September, King said there would be an announcement to make about Sydney airport “in due course”.
Elsewhere, climate and transport industry advocates have been awaiting clarity on the government’s fuel efficiency standard. Climate and transport advocates have said the government’s electric vehicle strategy outlined in April has achieved little and remains “hamstrung” six months after its release without details of a fuel efficiency standard.
