Originally Posted by
Blueskymine
However Jetstar will be Australia’s second airline if it all goes belly up (Virgin). The ACCC will mandate QF split it and that’ll be that.
I have heard this line a few times, but come on, is it the ACCC's role to create competition?
The ACCC mandate is to "protect consumer rights, business rights and obligations, perform industry regulation and price monitoring and prevent illegal anti-competitive behaviour". It is
not there to make sure every business has a competition, otherwise Australia would be one of the worst places to do business, could you imagine every time a competitor goes under, ACCC forcibly breaks up the remaining companies in the same sector all in the name of "competition'?
As for monopolies, well if there is a market for 2 players, there would be someone else who steps up, for all the sentiments that no one would step in the shoes of VA if they go under, maybe that just means that after this crisis, there isn't enough market for more than 1 player?