Feeding frenzy for cut-price air seats
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Feeding frenzy for cut-price air seats
Wed "Daily Telegraph
Feeding frenzy for cut-price air seats
By ANTHONY MARX
December 29, 2004
HUNDREDS of thousands of discounted air tickets have been snapped up for domestic travel in the new year.
Rival budget carriers Virgin Blue and Jetstar collectively released about 800,000 seats on December 16, with one-way prices starting as low as $49.
However, aviation analysts warn that using cut-rate seats to drum up business in the traditionally slow post-Christmas period between January 18 and May 31 will put added pressure on already tight profit margins.
The cheapest seats cost $19, but $30 in taxes and fees, including a petrol surcharge, added to the ticket cost.
Jetstar's parent company, Qantas, has also entered the discounting fray.
Virgin spokesperson Amanda Bolger said the Brisbane-based airline had enjoyed "a fantastic response" to the "St Nick's nick off" sale, which ends at midnight tonight.
"It's actually gone quite berserk. We had about 500,000 out there in the market and there's only a little over 150,000 left," Ms Bolger said.
Perth and north Queensland were the most popular Virgin Blue destinations out of Brisbane, although the sale applied to a limited number of seats a plane and was not available on all routes.
Jetstar spokesman Simon Westaway declined to reveal how many of the 300,000 discount tickets had already been sold, saying only that it had reached the tens of thousands.
"We've had a really positive response," he said.
Mr Westaway said the most sought-after flights, apart from capital city links, were to the Gold and Sunshine Coasts and Hamilton Island.
He acknowledged reports that some parts of Queensland, including Cairns and the Sunshine Coast, had suffered a slow-down in holiday period accommodation bookings.
"Visitation numbers are a bit off from last year," he said.
"What we're finding is record passenger departure volumes, but people's travelling habits are changing. They are concentrating more on shorter stays, which has really stimulated a friends' and relatives' travel market.
"Whether they are staying at hotels or not is an interesting debating point. They are also looking at international [travel] much more."
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Feeding frenzy for cut-price air seats
By ANTHONY MARX
December 29, 2004
HUNDREDS of thousands of discounted air tickets have been snapped up for domestic travel in the new year.
Rival budget carriers Virgin Blue and Jetstar collectively released about 800,000 seats on December 16, with one-way prices starting as low as $49.
However, aviation analysts warn that using cut-rate seats to drum up business in the traditionally slow post-Christmas period between January 18 and May 31 will put added pressure on already tight profit margins.
The cheapest seats cost $19, but $30 in taxes and fees, including a petrol surcharge, added to the ticket cost.
Jetstar's parent company, Qantas, has also entered the discounting fray.
Virgin spokesperson Amanda Bolger said the Brisbane-based airline had enjoyed "a fantastic response" to the "St Nick's nick off" sale, which ends at midnight tonight.
"It's actually gone quite berserk. We had about 500,000 out there in the market and there's only a little over 150,000 left," Ms Bolger said.
Perth and north Queensland were the most popular Virgin Blue destinations out of Brisbane, although the sale applied to a limited number of seats a plane and was not available on all routes.
Jetstar spokesman Simon Westaway declined to reveal how many of the 300,000 discount tickets had already been sold, saying only that it had reached the tens of thousands.
"We've had a really positive response," he said.
Mr Westaway said the most sought-after flights, apart from capital city links, were to the Gold and Sunshine Coasts and Hamilton Island.
He acknowledged reports that some parts of Queensland, including Cairns and the Sunshine Coast, had suffered a slow-down in holiday period accommodation bookings.
"Visitation numbers are a bit off from last year," he said.
"What we're finding is record passenger departure volumes, but people's travelling habits are changing. They are concentrating more on shorter stays, which has really stimulated a friends' and relatives' travel market.
"Whether they are staying at hotels or not is an interesting debating point. They are also looking at international [travel] much more."
=========================================
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Thurs "The Australian"
Cheap flights, but beware the *
Steve Creedy, Aviation writer
December 30, 2004
NEW year sales look to be generating international airfare bargains - $1099 to London and $1598 return to almost anywhere in the US - but watch out for the asterisk.
The travel industry's decision to revert to emphasising fares before taxes and charges means headline prices can understate the actual cost by more than $350.
Airlines and travel companies are taking advantage of recent court rulings to return to the old pre-tax pricing regime once banned by the competition watchdog as too confusing.
Which airline you fly on which route may define how much tax you pay. Taking a United Airlines flight from Sydney to Los Angeles, for example, adds about $210 in taxes and surcharges. An Air New Zealand flight to the same destination adds $296.
The highest tax and surcharge slug uncovered during a survey of internet sites was a $368 levy on a $1336 Austrian Airlines flight to Vienna, Paris or Munich.
A Virgin Pacific $99 one-way to New Zealand provided one of the biggest levies in proportion to the fare, with taxes and charges of $90 making up 47 per cent of the total cost.
But the tax-generated sting accompanying headline prices does not mean summer bargains are not available.
United Airlines yesterday became the latest to launch a sale aimed at stimulating travel in the traditionally quiet post-Christmas period. The sale has return economy fares from Australia to San Francisco and Los Angeles "for as little as $1499" with an add-on to 190 US cities for just $99. Adding taxes and surcharges starting at $215 a person still gives an attractive fare to many US destinations starting at $1813, particularly given travel dates stretch from January 15 to June 17.
Taxes and charges starting at $210 are not included in the $1099 promotional return fares to London and other European destinations advertised on Flight Centre's website.
Those heading off later in the year and prepared to travel at less popular times can find more widely available pre-tax and surcharge fares to Europe starting at $1299 ex-Perth and from $1379 on the east coast.
==========================================
Cheap flights, but beware the *
Steve Creedy, Aviation writer
December 30, 2004
NEW year sales look to be generating international airfare bargains - $1099 to London and $1598 return to almost anywhere in the US - but watch out for the asterisk.
The travel industry's decision to revert to emphasising fares before taxes and charges means headline prices can understate the actual cost by more than $350.
Airlines and travel companies are taking advantage of recent court rulings to return to the old pre-tax pricing regime once banned by the competition watchdog as too confusing.
Which airline you fly on which route may define how much tax you pay. Taking a United Airlines flight from Sydney to Los Angeles, for example, adds about $210 in taxes and surcharges. An Air New Zealand flight to the same destination adds $296.
The highest tax and surcharge slug uncovered during a survey of internet sites was a $368 levy on a $1336 Austrian Airlines flight to Vienna, Paris or Munich.
A Virgin Pacific $99 one-way to New Zealand provided one of the biggest levies in proportion to the fare, with taxes and charges of $90 making up 47 per cent of the total cost.
But the tax-generated sting accompanying headline prices does not mean summer bargains are not available.
United Airlines yesterday became the latest to launch a sale aimed at stimulating travel in the traditionally quiet post-Christmas period. The sale has return economy fares from Australia to San Francisco and Los Angeles "for as little as $1499" with an add-on to 190 US cities for just $99. Adding taxes and surcharges starting at $215 a person still gives an attractive fare to many US destinations starting at $1813, particularly given travel dates stretch from January 15 to June 17.
Taxes and charges starting at $210 are not included in the $1099 promotional return fares to London and other European destinations advertised on Flight Centre's website.
Those heading off later in the year and prepared to travel at less popular times can find more widely available pre-tax and surcharge fares to Europe starting at $1299 ex-Perth and from $1379 on the east coast.
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A Virgin Pacific $99 one-way to New Zealand
