Productivity Commission Report Highlights High Costs of Regional Air Travel

Regional Australians face domestic travel costs that average 173 per cent more per kilometre than routes operating between major cities, according to an interim report published by the Productivity Commission. The investigation into the drivers of regional airfares was commissioned by Federal Treasurer Jim Chalmers and evaluated more than 100 public submissions.

Among the submissions cited in the report, one family of four reportedly paid $3,200 for a single one-hour flight between Kalgoorlie and Perth. The commission noted that this expense matched the price of a single return airfare from Australia to Europe.

Submissions from remote communities highlighted the social impacts of escalating ticket prices. The Northern Territory-based Yalu Aboriginal Corporation warned in its submission that high travel costs disconnect children in care from their relatives, stating that expensive airfares deprive vulnerable young people of the opportunity to maintain family connections into adulthood.

The Productivity Commission recommended that governments cease supporting individual airlines directly and instead subject subsidised regional routes to a competitive tender process. The report comes as airlines around the country continue to cancel regional services, citing high fuel expenses and insufficient customer demand.

The report marks the first time comprehensive data has been available to analyse the specific pricing mechanisms behind regional air services. Customers and community advocates have continued to call for greater transparency from airlines regarding pricing structures as the review process continues.