PDA

View Full Version : Airlines scramble in fare war


Wirraway
1st Jul 2004, 20:12
Fri "Courier Mail"

Airlines scramble in fare war
Renee Viellaris
02jul04

QANTAS slashed its fares yesterday, sparking a price war with its own discount carrier Jetstar and rival Virgin Blue.

Hours after Qantas advertised its "million seat sale", Jetstar and Virgin Blue hit back to reveal their own reduced fares.

Virgin Blue won the price battle by generally offering the cheapest seats, but it appears consumers will win the war.

For at least a week, passengers will be able to capitalise on cheaper fares with one-way tickets from Brisbane to Sydney from $55 (Virgin Blue), Brisbane to Melbourne from $89 (Qantas) and Gold Coast to Sydney $75 (Jetstar).

But those hoping to scoop up a cheap fair for end-of-season football finals will probably be out of luck.

A Qantas spokesman said prices at peak periods, which include sport finals, will have peak prices.

The spokesman said late yesterday afternoon he was not aware Jetstar or Virgin Blue also had reduced their fares.

"We are not doing this to start a price war or cut Jetstar out," he said. "We are very pleased to offer a really great deal."

Jetstar spokesman Simon Westaway said he didn't believe Qantas was trying to outprice it.

"We're not in active competition," Mr Westaway said.

He said Jetstar flew to many areas Qantas did not service.

Yet after Qantas announced its sale Jetstar followed suit, but in some cases could not beat its bigger sister.

Jetstar passengers flying from Brisbane to Melbourne, arriving at Avalon Airport, about 55km from the city, will pay from $89. It's the same as Qantas's fare.

Jetstar's Gold Coast to Sydney service costs $75, while Qantas's Brisbane to Sydney fare sets passengers back only $59.

A Virgin Blue spokesman said their airfares would remain competitive and it would not be undersold.

"We assume that Qantas is becoming a more competitive airline because we've certainly forced them down that path," he said.

"We'd rather sell a seat for less price than fly with it empty."

He would not comment on which airline would win the price war, but said Virgin Blue "was on the right path".

"Consumers are winning. Tourism is a winner," he said.

=======================================

airsupport
1st Jul 2004, 20:56
Managed to get a couple of seats on the QF web site last night for Melbourne at $89 each one way. :ok:

Surprised to get them for that price, as they are for Melbourne Cup Week.

However I notice this morning, cheapest seat available now on the same flight is $122. ;)

TIMMEEEE
2nd Jul 2004, 04:16
Well VB wanted competition and to quote Brett Godfrey in an article some time ago "bring it on".
What ever happened to Brett Godfrey's "we'll see your million and raise you another million..." ??

Must be nice for Godfrey and Huttner et al' feeling the squeeze.
Havent seen Godfrey of late doing his standard squeal and 'hard done by' bleating on the box.

As I've said before he will only prove his worth when the competition heats up and so far it's been a very average performance.

Beer Can Dreaming
2nd Jul 2004, 23:48
Very true Timmeeee.

Godfrey and co always have promised to match the competition but I see no response in this case.
In this case he has not done his normal ruse of whinging to the ACCC with the media firmly in tow.

Maybe the competition is getting to him - I dont know.
I do know however he has a major headache after those recent load figures were released.