The Australian Government has initiated a comprehensive inquiry into the factors influencing regional airfares, responding to ongoing concerns about pricing and competition within the industry. On 28 October 2025, Treasurer Jim Chalmers and Minister for Transport Catherine King announced the launch of the Productivity Commission’s investigation, which aims to provide a clearer understanding of regional airfare dynamics.
The inquiry arises from the Aviation White Paper, which highlighted the challenges faced by regional Australians in accessing affordable and reliable air services. According to the findings, the average ticket price per kilometre for regional flights is 52 percent higher than that of flights between capital cities. This disparity poses significant barriers for residents of regional and remote areas, affecting their access to essential services such as healthcare and education.
The Productivity Commission will analyze various aspects of regional airfares, including competition, pricing practices, and the fairness of profits along the supply chain. The inquiry will involve public hearings and encourage community submissions, ensuring that the voices of those affected are heard. This data will be crucial for both state and federal governments as they seek to address the regional airfare issue more effectively.
Over the past few decades, regional air routes have seen a concerning decline. The number of regional routes has decreased from 458 in 1989 to 291 in 2021, while remote routes fell from 264 to 163 in the same period. Many of these routes are now serviced by only one airline, limiting options for travelers and exacerbating the problem of high fares.
Catherine King emphasized the importance of this inquiry for local economies, stating that more accessible regional airfares can stimulate growth and enhance productivity in regional Australia. The government aims to use the findings to develop strategies that will make the regional aviation network more competitive and affordable.
The final report from the Productivity Commission is expected to be released in approximately 18 months. The terms of reference for the inquiry can be accessed on the Productivity Commission’s official website. The government looks forward to the recommendations that will emerge from this thorough examination, which is poised to have a lasting impact on regional aviation services and communities across the nation.
