The Federal Member for Fenner has used a speech to renew calls for greater competition in the airline industry.

Andrew Leigh, in his role as the Assistant Competition Minister – delivered a speech in Melbourne about Australia’s need for greater comptition.

He referred to signs, the intensity of competition has weakened over recent decades, including the aviation industry – and he says, many Australians have suffered from a lack of competition.
He says Darwin residents often found it cheaper to fly to Singapore, than to Sydney – eventhough the international flight is longer than the domestic one.

Andrew Leigh’s comment follows a prediction by aviation analyst Peter Harbison that airfares would go up because there’s very little prosect of downard pressure on fares, because there’s a shortage of capacity among other issues.

Mr Harbison described Qantas as “The 800 pound Gorilla which can basically do what it likes in the market”.

He says Qantas was up against Virgin, Rex and Bonza which all “don’t want to rock the boat” as they try to recover.

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