Australian airfares hit lowest point in 17 years

[Pedota]

Looks like Australians can get the best airfare bargains since 1992 . . . with more cuts to come.

As reported in today's Airline Transport World.

Domestic airfares in Australia have plummeted 30% in a year to the lowest point in 17 years, according to data released by the government's Bureau of Infrastructure, Transport and Regional Economics.

While the lowest fares fell dramatically, domestic business class fares eased just 1% but are expected to decline more significantly in the coming months as the economy continues to slow and business confidence sinks to its lowest level since surveys were launched in 1998.

An Australian Chamber of Commerce and Industry investor confidence survey found that expectations for early 2009 were even worse than 2008. ACCI said business conditions and sales were at their lowest levels since 1998 when the survey began and profitability was at its lowest level in seven years.

The BITRE Domestic Air Fare Index is not expressed in actual fares but as an index. The January 2008 index of 56.1 is almost half that of January 1993.

Fares also are expected to nosedive on international routes from February, with some Australia-based airline executives describing forward bookings to ATWOnline as "extremely weak."

On the Pacific, V Australia is due to launch 777-300ER service on Feb. 27 with fares starting at A$1,199 (US$827.65) return (ATWOnline, Dec. 18, 2008). Delta Air Lines will launch Atlanta-Los Angeles-Sydney flights on July 1.
On shorter-range routes, both Tiger Airways and AirAsia X are offering significant discounts, with a A$206 one-way Melbourne-Singapore fare and a A$199 one-way ticket to Kuala Lumpur from Melbourne and Perth.

by Geoffrey Thomas

[Nick McArr]

If they go much lower, the tech and cabin crew will have to pay for there seat aswell.

[tipsy2]

The above article is stuningly similar in headline, content format and data to one from the Australian on Jan 12th.

Discount domestic airfares fall to 17-year low | The Australian (http://www.theaustralian.news.com.au/business/story/0,28124,24899912-23349,00.html)

Obviously the BITRE data is a source for both articles so some similarities could be expected.

Hmmmmmmm, I wonder:=

tipsy:confused:

[blow.n.gasket]

Have a look at the National Aviation Press Club incestuous love fest portrayed on p68-71 of the latest Australian Aviation magazine.
I predict it will work better than ipecac syrup!:}

[Eastwest Loco]

Putting a bit of negative spin on all above, the Australian domestic and to some degree short/medium haul International market has simply gone the way of the US immediately after deregulation.

The cheap fares have bcome way cheaper, as a suck in an marketing tool to get people on the phones or on their websites as the rock apes out there cannot get their heads around the cheapies NOT being available on Good Friday and the Australia Day long weekend. This gives the airlines a chance to upsell to the remaining fare over all demand days/times.

The "last few seats" full fares have gone way up to grab the dollars of those who must fly. Simple supply and demand. Try Brisvegas Rocky - quite often DJ will be considerably more expensive than QF, and when you get to a few seats left on QF SYD ROK on a Monday morning, returning Friday PM you are looking at $1200+ in airfares.

Don't lose sight of the fact that the bullcrap low fares are the "lead in" fares, and are generally thrown out on flights that are traditionally dogs, but needed for their inbound traffic at a directional popular time or as an advance baseload to a small percentage of seats in the hope that the return will drive an overall healthier average yield.

The game is afoot my dear Watson! And it has been since Pontius was a QF Cadet.

This phenomenon never hit Australia when deregulation first came in, or only had minimal effect as the Bodgie and Fat (self lubricating female body part - socially frowned on slang version) had engineered it not to. Now it is here with TR JQ and DJ, but with QF still often the cheaper option when you take into play the bells and whistles such as baggage, food and a cup of coffee.

We can't really change it now as it is the only one we got!!:(

Best all

EWL

[Tiger01]

Eastwest Loco,

Funny you mention that QF is often cheaper than DJ, a quick check of fares tomorrow ROK - BNE shows two similar timed flights in the morning with Qantas at $89 compared to virgin at $245, quite a big difference considering that Virgin is suppose to be the low cost carrier.

[captaintunedog777]

What a tragedy. Fares have become cheaper and when there are a few reaining seats left or the day before the airlines up the fare. Gee Loco can you please explain to me why this is a problem? Funny I actualy thought airlines were in the business to make money.

It is quite easy to bag the crap out of the poor old rock ape when he has absolutey no idea about the airline industry unlike your self.

Got to hate those airlines that promote the net in order to bypass the middleman. With a few $2 seat giveaways to encourage online bookings and for ease who wouldn't.


Cheers all

[woopwoopphuckphuck]

yup fares are low thats for sure

in 2008 i flew (self funded) 21 return trips mainly on the east coast and twice to the north west of WA

mainly book roughly a week in advance. On all but TWO occasions QF were cheaper than DJ. And often they were considerably cheaper. Getting to the point where I am not gonna bother comparing flights me thinks. Just go with QF. Get a free paper, meal, drink, TV. DJ .....Low Cost .......yeah right.

[Eastwest Loco]

Tunedog

I was not bemoaning the Airllines, just stating that as a fact.

If the Airlines don't make money, it's all simple - no Airlines, as they are not St Vincent de Transport.

The situation has been the same since the first Off Peak fares crept in mid '70s but yield management models have become more and more complex and automated over the last 10 to 15 years.

Sorry, I should know better than to use facts in this esteemed forum.

As for the rock ape, I refer to the subspecies that used to occupy the rear row of the Skinny Dog and Firefly services who consider poking a bread knife through a Corn Flakes box high entertainment coz it makes a sound!! Now they want their Social Security discount off a $40.00 fare. Try explaining fare rules to that lot.

We are only too happy to try to explain rules that most of humanity can understand, but are on a beating to nothing with that lot, particularly when they need to change and swear and declare nobody told them it costs.

Tiger

I guess I chose that as I have a good deal of exposure to SYD and BNE to ROK. If time allows, the Jungle Jet nonstop with DJ usually wins on the SYD ROK, but QF is very often the "sleeper" and saves big bucks.

The perception is that DJ and JQ (and Tiger) are cheapest as driven by advertising, but many overlook QF and pay more than they need to. Obviously the advertising is very effective.

Best all

EWL

[7378FE]

Funny you mention that QF is often cheaper than DJ, a quick check of fares tomorrow ROK - BNE shows two similar timed flights in the morning with Qantas at $89 compared to virgin at $245, quite a big difference considering that Virgin is suppose to be the low cost carrier.

The reason being is that Virgin Blue has probably sold most of the seats on their flight and the QANTAS flight leaves half full. :rolleyes:

[Eastwest Loco]

Not on that run FE.

It is usually hard to get a seat at a decent price on either carrier.

The reverse can be the case on many other runs, with QF full as a Primary School, and DJ still with Blue Saver available.

Yield management is not as monochrome as you seem to paint it. There are a lot of politics, local predation and a heap of other factors we are not an will never be privy to in play. Sort of sit down, shut up and we'll tell you when we're there.

Best regards

EWL

[Track5milefinal]

Cost me $650ish to fly ADL-OOL return on Tiger (6 of us)

If thats not a bargain i don't know what is!!