Qantas-Jetstar and Virgin airline 'duopoly' driving domestic flight prices up, ACCC report says

The federal government should consider forcing airlines to pay passengers compensation for cancelled or delayed flights, the consumer watchdog has said in a report criticising the industry. Key points: The lack of competition among Australia's domestic airlines has led to poor outcomes for consumers, an ACCC report says The report says more than 90 per cent of domestic passengers fly with Virgin or the Qantas Group, including Jetstar The airlines say the government should look into "monopoly airports" if it wants to improve competition In April nearly 4 per cent of domestic flights were cancelled and close to 30 per cent were late, the Australian Competition and Consumer Commission's latest report, released today, said. The "duopoly" has made the domestic airline industry one of the most concentrated in Australia, leading to "underwhelming outcomes" for consumers, the report said. Compensation proposal has merit: ACCC The ACCC has called for measures to improve competition over the long-term, and said the federal government had "several policy options" to improve airline services for customers in the short-term. "Without these slot changes, there will not be any material improvement in domestic airline competition in Australia in the foreseeable future," the report said.