The Australian Travel Industry Association (ATIA) has voiced its strong support for former ACCC Commissioner Rod Sims’ call for significant reforms in the aviation sector. This support is grounded in a comprehensive study commissioned by the ATIA, led by former Qantas economist Tony Webber. The study, which analyzed two decades of data, revealed a disturbing trend: airlines frequently cancel flights for purely commercial reasons, leading to detrimental consequences for both the travel industry and consumers.
The study highlights a crucial loophole in the current system – the 80-20 rule. This rule allows airlines to retain valuable airport slots even if they cancel a significant number of flights, as long as they maintain a minimum operational threshold of 80%. This practice, according to the study, gives airlines a significant advantage and enables them to prioritize their financial interests over the needs of passengers and the broader travel industry.
The ATIA is urging immediate action from relevant authorities to address these issues and implement meaningful reforms. They believe that a fairer and more transparent market structure is essential for the sustainability and growth of Australia’s travel and tourism industry. These reforms are crucial to ensuring that consumers are protected from unfair practices and that the travel industry can thrive in a competitive and equitable environment.
