Qantas growing margins ten times faster than Woolies

afr.com:

The Australian Airports Association says Qantas is growing its margins at about ten times the rate of grocery giant Woolworths and warned that pent-up travel demand won’t last forever, calling on the government to act on industry concentration that has worsened since the pandemic.

In response to the Daniel Mulino-chaired House of Representatives inquiry into promoting economic dynamism, competition and business formation, the AAA has asked the government to deliver a “regulatory framework that promotes competition in the aviation sector, holding airlines to a similar regulatory standard as airports, particularly on the exercise of market power”.

It also wants the government to urgently reinstate the Australian Competition and Consumer Commission’s monthly airline monitoring, which finished in June.

Australian Airports Association chief executive James Goodwin says the government disproportionately boosted Qantas with pandemic-relief. Bloomberg

AAA chief executive James Goodwin said the government inquiry’s terms were too limited and should be expanded to look at airline market concentration and competition issues within the aviation industry, singling out Qantas’ dominance.

Mr Goodwin said that the government’s $5 billion support package had “disproportionately benefited airlines” which received $3.22 billion or 63.5 per cent of the total, compared with the $220 million in assistance offered to airports.

And he said changes triggered by the pandemic, particularly with Virgin Australia going into receivership, has “further concentrated the market, with Qantas remaining dominant”.

“Following the pandemic, domestic aviation has become one of the most concentrated markets in Australia. Qantas Group and Virgin Australia