en.Wedoany.com Reported, The Australian Competition and Consumer Commission (ACCC) stated in its submission to the Productivity Commission that since 2019, passenger numbers on remote routes have increased by 13.3%, while seat capacity has only grown by 10.8%.

However, this growth in demand has not led to improved connectivity. The number of remote routes has decreased from 52 in January 2019 to 38 in January 2026. Among the 15 remote routes abandoned by airlines, Qantas withdrew from 11, Virgin Australia from 3, and Rex from 2, with Queensland being the most significantly affected.

The ACCC stated: "These changes are occurring against a backdrop of high concentration in the domestic airline industry. The Qantas Group provides over two-thirds of domestic passenger services, and together with Virgin Australia, they hold over 95% of the market share." The regulator emphasized that insufficient competitive pressure in the regional aviation market may lead to persistently high airfares and limited service options.

As of January 2026, domestic airlines were servicing 23 major city routes and 90 regional routes. The number of regional routes increased from 82 in January 2019 to 90, despite 11 routes being abandoned during this period. Since 2020, the number of regional routes has fluctuated significantly, partly due to the entry and exit of Bonza, as well as other airlines testing demand on new routes.

The ACCC noted that although new entrants like Rex and Bonza temporarily increased choice and exerted downward pressure on fares, their failures highlight the challenges faced by new market entrants. The regulator pointed out: "Both airlines faced structural and financial challenges that hindered sustained competition, underscoring the significant barriers to entry in thin regional markets."

To ensure that Australians living in remote areas have access to safe, reliable, and affordable air services, the ACCC recommends the need for a policy framework that supports effective competition. The regulator also mentioned that in some regional markets, sustaining multiple airlines may be difficult, and there may be tension between competition and economies of scale.

In January of this year, the Qantas Group operated 82 regional routes and 26 remote routes, while Virgin Australia operated 26 regional routes and 11 remote routes, and Rex operated 18 regional routes and 13 remote routes. This distribution reflects the current state of the remote aviation market.

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