Qantas has taken more swipes at rival airline Regional Express, saying Rex has nobody to blame but itself for being unable to make monopoly routes work.
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Rex announced on May 30 it would withdraw from five regional routes.
" ... it is with a really heavy heart that we have to announce the cessation of services in an effort to improve Rex's financial performance," deputy chairman John Sharp said.
"Qantas' well publicised predatory actions on Rex's regional routes have meant that Rex no longer has the ability to cross-subsidise these marginal routes.
"It is unfortunate that these regional communities (Bathurst, Grafton, Lismore, Kangaroo Island and Ballina) are the collateral damage of Qantas' bullying and heartless behaviour."
A Qantas spokesperson on Tuesday said Rex's claims were ridiculous.
"Rex is always looking to blame others when it withdraws from regional routes, but none of its claims stack up to scrutiny," they said.
"Rex has a monopoly on three of these routes it's abandoning, so, if it can't make them work, it has no-one else to blame but itself.
"Rex says it doesn't have the funds to cross-subsidise these routes, but it doesn't have a problem finding money to invest in more aircraft for its capital city 737 operations.
"That must be confusing for regional customers given Rex's tagline is that their heart is in the country.
"Rex's claims against Qantas have become so far-fetched, we had to create a dedicated page on our website to rebut them and update it on a fairly regularly basis as they cook up more weird conspiracy theories."
Rex on May 30 said it would closely monitor its remaining regional network and further "adjustments" could be announced in coming months.
IN OTHER NEWS:
Competition watchdog the ACCC on Wednesday confirmed it had closed its investigation into Rex's claims of alleged anti-competitive conduct by Qantas.
"In March 2022, the ACCC finished its investigation into whether Qantas' entry and expansion on certain routes was a misuse of market power in breach of competition law," the ACCC said.
"We started our investigation when Rex complained in late 2020 and early 2021 about Qantas entering regional routes that were historically operated by Rex.
"Rex also complained that Qantas added capacity on intercity routes on which Rex had recently begun offering services.
"In closing the investigation, we noted that COVID-19 movement restrictions and border closures impacted the competitive dynamics in the market.
"COVID-19 related measures have now been relaxed.
"This will make it easier for the ACCC to evaluate whether any future capacity increases or pricing practices by airlines in response to new competition raise concerns under competition law."
QantasLink chief executive John Gissing said Rex's claims clearly never had any substance.
"What Rex calls predatory behaviour is actually competition which provides these regional communities with choice, more services and lower fares.
"Rex may claim their heart is in the country, but in the past few weeks they've pulled off seven regional routes, with two more on the chopping block.
"At the same time, they are expanding their jet services to capital cities as quickly as they can, despite revelations this week that most of these flights are departing half empty.
"Rex need to stop blaming others and take responsibility for their decision to exit these regional routes."
Mr Sharp, a former federal Nationals MP, slammed the ACCC, saying it appeared content to sit on the sidelines watching rather than "getting in and umpiring".
"I can't understand the ACCC," Mr Sharp said.
"There's all these consumer issues around Qantas's treatment of travel credits and refunds expressed by thousands of people, but they don't seem to be doing anything.
"One wonders what the point of the ACCC is."