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this post was submitted on 02 Oct 2023
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Don’t you worry, I’m sure the free market competition will sort it out any minute now…
/s
But wouldn't a more free market in this case let them do more direct flights to Melbourne without requiring the extra leg?
The extra leg is only added to get around a specific kind of regulation of the market (limiting how many flights they can do with Melbourne as a destination), it wouldn't exist otherwise.
If Melbourne had unlimited capacity for flights, yes. But that's where the free market stuff tends to fail in reality, it works if you assume a market without natural limits, but not otherwise.
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.