Competition watchdog Rod Simms says he’ll be keeping a close eye on Qantas to ensure they don’t abuse their dominant market position by engaging in an anti-competitive price war and smothering a resurgent Virgin Australia.

Qantas CEO Alan Joyce said Jetstar could return to the skies with rock-bottom prices, including fares between Sydney and Melbourne for as low as $19, which would prevent further cash burn but would not be profitable.

ACCC Chair Rod Simms tells Money News host Brooke Corte Qantas’ language unambiguously shows the benefits of competition in the airline sector.

“You would have to think the dominant reason Qantas is making these comments is to send messages to the potential competitor, which shows if they have a strong competitor, that would bring about lower prices for the consumer,”

Mr Simms said the potential for Qantas to engage in anti-competitive behaviour is a concern.

“We, the ACCC, need to watch Qantas very closely when the new airline emerges out of administration to make sure that there’s not dumping of capacity on routes, to make sure there is not conduct which is having the effect of taking out the new player,”

Click PLAY to hear Rod Simms speak with Brooke Corte: