ACCC keeping ‘vigilant’ watch on Qantas and Virgin airfares after Rex retreat

Watchdog provides bleak assessment of airline competition, saying ticket prices could climb with return of duopoly

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The competition watchdog has told Qantas and Virgin it will keep a vigilant" eye on their air fares, as it warns the dominant carriers could capitalise on the axing of Rex's competing inter-city flights by increasing ticket prices on high demand routes.

The Australian Competition and Consumer Commission (ACCC) issued a bleak assessment of airline competition when releasing its latest quarterly domestic aviation monitoring report - a government-ordered exercise - on Thursday, its first since the liquidation of budget carrier Bonza in July and Rex's entry into voluntary administration.