A report from the competition watchdog into Australia's domestic airline competition dropped, a Senate committee on the same topic was held, and the federal government announced an $80 million bail-out for Rex.

Here's a breakdown of what happened.

Domestic airfares up, international down

The ACCC's report made clear the absence of competition – after Rex went into administration and vowed to exit the 'Golden Triangle' of major capital routes – is pushing fares up.

The report said: "Between July and September 2024, the index of average fare revenue per passenger on major city routes increased by 13.3 per cent in real terms, which is much higher than the 5.8 per cent increase across all routes over the same period.

"In comparison, average revenue per passenger decreased by 2.8 per cent and 2.3 per cent on regional and remote routes respectively."

It did note factors like school holidays and major sporting events can impact prices.

While domestic prices climbed, international airfares have been trending downward, partially due to a significant drop in jet fuel prices.

The ACCC's report pointed to reduced international demand as another contributing factor to lower prices for overseas routes.

But Qantas' domestic airline chief executive Markus Svensson released a statement questioning the ACCC's price data.

"The data quoted in the ACCC's report on fare increases for particular routes does not reflect the average fares customers are actually paying," Mr Svensson said.

"The data is from the government's monthly fare monitoring which expressly states that it does not measure 'average fares paid by passengers.' It is a snapshot of the lowest fares available to purchase on a particular day three weeks prior to travel and does not factor in events which may impact demand and fares."

Mr Svensson said the ACCC looked at prices on October 31, which was when Coldplay was in Melbourne.

"Demand was significantly higher on flights into Melbourne which means lower fares were snapped up early and the fares left available to purchase three weeks out were higher than usual. The average fare increase on these routes between July and October was significantly lower."

Qantas under fire for 'slot hoarding'

Alongside the ACCC's report was the Senate Rural, Regional Affairs and Transport Legislation Committee hearing.

The issue of 'slot hoarding' dominated the inquiry in Canberra, where Qantas was grilled over its control of landing and take-off slots at Sydney Airport, which smaller airlines argue limits competition.

Committee member senator Bridget McKenzie pushed Qantas on whether its slot control at Sydney Airport was hampering competition.

Qantas' Mr Svensson denied the airline engaged in anti-competitive behaviour and pointed out Qantas only used 25 per cent of slots at Sydney Airport compared to British Airways' 50 per cent at Heathrow in London.

Nevertheless, senators expressed frustration with Qantas' lack of data about flight cancellations at Sydney Airport — Qantas executives took the request on notice.

The committee also heard Sydney Airport's compliance committee, which oversaw slot allocations, had not met for five years.

Canberra Airport's chief executive, Stephen Byron, told senators the current system stifled competition by preventing new entrants from accessing prime slots and said change was desperately needed.

"There will be no new entrants… no competition," he said.

Qantas again defended its practices and said Sydney Airport only used 70 per cent of its maximum available capacity

Mr Byron argued for changes to Sydney Airport's strict 11pm to 6am curfew, suggesting the cut-off could be extended to midnight when severe disruptions occurred.

According to Canberra Airport, slot hoarding restricted competition, especially for regional routes, with passenger numbers on Canberra-Sydney flights falling by a third in recent years.

Regional Aviation Association chief executive Rob Walker, however, said the current system worked and added operators generally accessed slots as needed.

Rex secures federal lifeline to sustain regional routes

In a boost for regional aviation, the federal government announced it had committed $80 million to save Rex.

The funding will allow the regional airline to continue operating while administrators work to strengthen the business.

EY administrator Sam Freeman said the federal support was critical for regional communities, as the funding would help maintain essential routes and safeguard jobs.

Flight Centre also weighed in.

The company's corporate chief operation officer, Melissa Elf, issued a statement on the importance of Rex to Australia's economy.

"Rex's regional service is critical to communities and businesses across Australia, particularly for mining, construction, health, government and not-for-profit industries," she said.

"Flight Centre Corporate books tens of thousands of travellers into regional destinations every month, and Rex has long been a trusted carrier for those who frequent regional cities."

Reforms recommended to boost competition

Within the ACCC's report was an aviation white paper that outlined long-term policies to improve Australia's aviation sector.

Responding to recent high levels of consumer complaints, the paper proposed measures to enhance protections, including the introduction of an Aviation Industry Ombuds Scheme aimed at resolving issues for travellers more effectively.

To boost competition in the industry, the paper suggested reforms could be made to encourage fairer access to slots.

On the international front, the paper said the government intended to pursue negotiations with other countries to increase flight capacities and, where beneficial, enter into "open skies" agreements.

These international arrangements are expected to bring more airlines and routes into the Australian market, enhancing traveller choice and competition on routes to and from Australia.

It also recommended changes to the Aeronautical Pricing Principles which aim to prevent anti-competitive pricing agreements between airports and airlines.

Reforms would allow for transparent data-sharing, so airlines and airports could negotiate pricing more openly.