The Hon. Jim Chalmers, Australian Treasurer; The Hon Catherine King, Minister for Transport, Minister for Regional Development, Minister for Local Government; Joint Media Release, 28 October 2025

Today [28 October 2025] the Albanese Government released the terms of reference for the Productivity Commission Inquiry into key factors that determine regional airfares.

Regional Australians deserve reliable air services at reasonable prices and that’s what this review is about.

That’s why in response to the Aviation White Paper, we tasked the Productivity Commission to look at regional airfares, including competition, pricing practices and whether profits along the supply chain are fair.

This will give state governments and the Commonwealth the nationally consistent data required to tackle the issue of regional airfares.

We know that safe, affordable and reliable air services are vital for regional and remote communities, not just for travel, but for access to healthcare, education and jobs.

More accessible regional airfares can help drive local economies, support tourism and boost productivity in regional Australia.

The Aviation White Paper found the average ticket price per kilometre was 52 per cent higher for flights involving regional airports than for flights between two capital cities.

Despite overall growth in passenger numbers, the number of regional routes fell from 458 to 291 between 1989 and 2021 and the number of remote routes fell from 264 to 163 in the same period. Many routes are now serviced by only one airline.

We have asked the Productivity Commission to hold public hearings and to invite submissions from the public.

The Productivity Commission will provide a final report in about 18 months’ time.

The terms of reference are available on the Productivity Commission website.

We look forward to the Commission’s recommendations on how we can make Australia’s regional aviation network more competitive, reliable and affordable.