AIRLINES will be allowed to continue co-ordinating flight schedules on the Mildura-Melbourne route until the middle of next year.
Rex had been authorised to work closely with Qantas and Virgin Australia on maintaining 10 regional routes due to the coronavirus pandemic and its effects on travel.
The Australian Competition & Consumer Commission (ACCC) on Thursday announced a proposed authorisation for the measures to be extended to June 30 next year.
Co-ordination between airlines may involve arrangements such as each carrier on a route operating one daily service, with revenue sharing between carriers, or an operator suspending operation on a route to allow another carrier to maintain a viable service.
ACCC deputy chair Mick Keogh acknowledged that such conditions would ordinarily raise competition concerns.
But he said the “extraordinary circumstances” of the pandemic meant co-ordination was in the public interest.
“The ACCC recognises that airlines are still facing significant challenges, including exceptionally low demand, due to the ongoing impacts of the COVID-19 pandemic,” Mr Keogh said.
“Allowing the airlines to co-ordinate in this way will contribute to the ongoing provision of services for passengers flying on these 10 regional routes.”
Both Rex and Qantas continue to fly between Mildura Airport and Melbourne, although Virgin has suspended services on the route.
Under the proposed authorisation, airlines can’t charge fares higher than those in place on February 1.
The authorisation was also subject to reporting conditions that allow the ACCC to monitor conduct.
