Collapse of two Australian airlines in three months sparks debate about government favouritism

SYDNEY – Australian travellers have grown accustomed to new domestic airlines swooping in with much fanfare before being grounded before long by financial troubles. And the recent collapse of two carriers within months of each other has sparked scrutiny of possible government anti-competitive actions.

On April 30, Bonza – a low-cost carrier targeting regional holiday destinations – failed after operating for just 15 months. Three months later, Regional Express, or Rex – which had been flying for 22 years, mainly servicing regional areas – announced that it was going into voluntary administration.