Australia: Competition to limit airfare hikes when surcharges cut: ACCC
ACCC chairman Rod Sims says airlines will be free to raise their fares to compensate for cuts to hidden surcharges the Reserve Bank is planning to impose, but argues competition will limit any such move. Analysts expect the domestic airline duopoly will be able to hike their fares to compensate for big changes in surcharges due to be decided by the Reserve Bank Friday. The RBA wants to force airlines to change the flat fees of between A$7 and $30 they charge now to a percentage based on the true cost of accepting credit card payments. Flat fees will be allowed, but limited to payments where the cost is actually a flat fee, like for the use of debit cards. This will slash the fees on short domestic flights, but hike fees on expensive international flights up to fivefold. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-05-17/general/australia-competition-to-limit-airfare-hikes-when-surcharges-cut-accc
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Australia: Competition to limit airfare hikes when surcharges cut: ACCC
ACCC chairman Rod Sims says airlines will be free to raise their fares to compensate for cuts to hidden surcharges the Reserve Bank is planning to impose, but argues competition will limit any such move. Analysts expect the domestic airline duopoly will be able to hike their fares to compensate for big changes in surcharges due to be decided by the Reserve Bank Friday. The RBA wants to force airlines to change the flat fees of between A$7 and $30 they charge now to a percentage based on the true cost of accepting credit card payments. Flat fees will be allowed, but limited to payments where the cost is actually a flat fee, like for the use of debit cards. This will slash the fees on short domestic flights, but hike fees on expensive international flights up to fivefold. <br/>
