Major airline faces backlash after using ‘ghost flights’ to exploit a legal loophole: ‘They weren’t even selling tickets’::Ultimately, it’s incumbent on lawmakers to take steps to ensure this practice is discouraged.
Major airline faces backlash after using ‘ghost flights’ to exploit a legal loophole: ‘They weren’t even selling tickets’::Ultimately, it’s incumbent on lawmakers to take steps to ensure this practice is discouraged.
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But a free market solution would be the airport increasing its prices until the demand at those prices matches how much capacity they have (and probably a push to add more capacity, or a build a new airport nearby, etc.)
The problem from Australia’s point of view is probably that this could cause their own airlines to be out-competed by foreign ones, or it could reduce the number of destinations where flights are viable, etc.
There are slot limits that regulate that. This is just a policy to benefit domestic airlines while encouraging flights to airports other than Sydney and Melbourne.