ACCC outlines how airlines are revising their service offering to select groups of passengers

    Australian Competition and Consumer Commission (ACCC), within its third Airline Competition in Australia report, outlined (17-Mar-2021) significant developments in the airline industry, including how airlines are revising their service offering to target particular groups of customers. ACCC chair Rod Sims stated: “It appears that Virgin and Rex are both targeting business and leisure customers who value a certain level of service but are also mindful of the price”, adding “This may leave Qantas facing less competition for premium customers, and through its Jetstar brand, for budget holiday customers as well”. The report analysed the role customer loyalty schemes have played in the airline industry. ACCC said while the schemes can potentially reduce competition by encouraging people to repeatedly fly with only one airline, they do not appear to be a major barrier to competition at present.

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