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.
=======================================
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.
=======================================