Jetstar slashes to bone in fare war
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Jetstar slashes to bone in fare war
Fri "The Australian"
Jetstar slashes to bone in fare war
Steve Creedy, Aviation writer
January 14, 2005
JETSTAR has turned up the heat in the domestic fare war with a 300,000-seat sale with one-way tickets starting at $9 plus taxes.
The $9 base fare is available on about 15 routes, including Sydney-Sunshine Coast, Sydney-Gold Coast, Newcastle-Melbourne, Melbourne-Hobart and Brisbane-Newcastle.
Other routes in the airline's network offer base fares of $29 to $69.
Jetstar said yesterday the four-day sale, for flights between January 25 and May 31, was aimed at filling planes in a traditionally quiet period and raising awareness of some routes.
It was also part of the airline's drive to get more people flying by offering low fares. Spokesman Simon Westaway denied the sale was necessary because people had failed to respond to a pre-Christmas promotion touting tickets from $19 plus taxes.
"We are absolutely rock solid determined to be the lowest fare operator in the domestic market," Mr Westaway said.
"We were very satisfied with the uptake and the volume of fares sold and the traffic volumes we'll be carrying as part of that sale we did prior to Christmas.
"What we are trying to do is incentivise more travel during what are traditionally lower patronised periods such as February."
Virgin yesterday matched fares on select routes but a spokeswoman said many of the airline's sale seats had already been filled through previous offerings. One consequence of the sale was to highlight the disparity in taxes and charges on Jetstar's 29-destination network.
When taxes and charges were added, the cheapest inclusive fares varied from $39 to $53.
The levies, which include a $12 per sector fuel surcharge imposed by the airline, varied from $60 for a Hamilton Island-Sydney flight, to $23 for Adelaide-Avalon.
Taxes and charges topped $50 on all the airline's Hamilton Island services with other expensive routes including Sydney-Mackay ($50), Brisbane-Mackay ($47), Sydney-Rockhampton ($46), Sydney-Sunshine Coast ($44) and Brisbane-Rockhampton ($43).
Jetstar is due to start flying from Adelaide on February 1.
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Fri "Melbourne Age"
Jetstar gives low-ball fares a second go
By Scott Rochfort
Sydney
January 14, 2005
In an attempt to counter the expected post-Christmas holiday slump in passenger demand, Qantas' low-cost domestic underling Jetstar has announced its second 300,000-seat sale in four weeks.
The airline said the four-day sale, which is offering one-way fares ranging from $39, was part of its "determined" push to entrench itself below Virgin Blue as Australia's lowest-cost airline.
Jetstar spokesman Simon Westaway dismissed suggestions the sale tickets were recycled from the previous 300,000-seat sale, which expired late last month.
Mr Westaway said Jetstar had sold the bulk of the previous 300,000 tickets. "What we're trying to do is incentivise additional travel during periods which are traditionally lower volume," he said.
Although Jetstar has widely spruiked the cheaper airport costs it achieves flying into Avalon, Mr Westaway failed clearly to explain why the fees on Jetstar's tickets into Avalon ($33) are the same as Qantas' into Melbourne Airport at Tullamarine.
"At the end of the day the prices we're talking about are very, very competitive. The travelling public is paying the end fare," he said.
The fees on some of the tickets have also increased since the last sale, which was announced in mid-December. Aside from Sydney-to-Avalon charges rising $3 to $33, fees from Sydney to Gold Coast have risen $14 to $44.
Virgin Blue, after launching its own sale last week, said it would respond to the Jetstar sale with a similar sale, noting it already had some tickets on the market.
"Yes, we are matching on selected routes," Virgin spokeswoman Amanda Bolger said.
QantasLink, meanwhile, has announced plans to buy 10 72-seat Bombardier Q400s for $200 million. The Q400s will enter service next year.
Qantas shares lost 1¢ to $3.65 and Virgin Blue shares rose 7 ¢ to $1.96.
==========================================
Jetstar slashes to bone in fare war
Steve Creedy, Aviation writer
January 14, 2005
JETSTAR has turned up the heat in the domestic fare war with a 300,000-seat sale with one-way tickets starting at $9 plus taxes.
The $9 base fare is available on about 15 routes, including Sydney-Sunshine Coast, Sydney-Gold Coast, Newcastle-Melbourne, Melbourne-Hobart and Brisbane-Newcastle.
Other routes in the airline's network offer base fares of $29 to $69.
Jetstar said yesterday the four-day sale, for flights between January 25 and May 31, was aimed at filling planes in a traditionally quiet period and raising awareness of some routes.
It was also part of the airline's drive to get more people flying by offering low fares. Spokesman Simon Westaway denied the sale was necessary because people had failed to respond to a pre-Christmas promotion touting tickets from $19 plus taxes.
"We are absolutely rock solid determined to be the lowest fare operator in the domestic market," Mr Westaway said.
"We were very satisfied with the uptake and the volume of fares sold and the traffic volumes we'll be carrying as part of that sale we did prior to Christmas.
"What we are trying to do is incentivise more travel during what are traditionally lower patronised periods such as February."
Virgin yesterday matched fares on select routes but a spokeswoman said many of the airline's sale seats had already been filled through previous offerings. One consequence of the sale was to highlight the disparity in taxes and charges on Jetstar's 29-destination network.
When taxes and charges were added, the cheapest inclusive fares varied from $39 to $53.
The levies, which include a $12 per sector fuel surcharge imposed by the airline, varied from $60 for a Hamilton Island-Sydney flight, to $23 for Adelaide-Avalon.
Taxes and charges topped $50 on all the airline's Hamilton Island services with other expensive routes including Sydney-Mackay ($50), Brisbane-Mackay ($47), Sydney-Rockhampton ($46), Sydney-Sunshine Coast ($44) and Brisbane-Rockhampton ($43).
Jetstar is due to start flying from Adelaide on February 1.
============================================
Fri "Melbourne Age"
Jetstar gives low-ball fares a second go
By Scott Rochfort
Sydney
January 14, 2005
In an attempt to counter the expected post-Christmas holiday slump in passenger demand, Qantas' low-cost domestic underling Jetstar has announced its second 300,000-seat sale in four weeks.
The airline said the four-day sale, which is offering one-way fares ranging from $39, was part of its "determined" push to entrench itself below Virgin Blue as Australia's lowest-cost airline.
Jetstar spokesman Simon Westaway dismissed suggestions the sale tickets were recycled from the previous 300,000-seat sale, which expired late last month.
Mr Westaway said Jetstar had sold the bulk of the previous 300,000 tickets. "What we're trying to do is incentivise additional travel during periods which are traditionally lower volume," he said.
Although Jetstar has widely spruiked the cheaper airport costs it achieves flying into Avalon, Mr Westaway failed clearly to explain why the fees on Jetstar's tickets into Avalon ($33) are the same as Qantas' into Melbourne Airport at Tullamarine.
"At the end of the day the prices we're talking about are very, very competitive. The travelling public is paying the end fare," he said.
The fees on some of the tickets have also increased since the last sale, which was announced in mid-December. Aside from Sydney-to-Avalon charges rising $3 to $33, fees from Sydney to Gold Coast have risen $14 to $44.
Virgin Blue, after launching its own sale last week, said it would respond to the Jetstar sale with a similar sale, noting it already had some tickets on the market.
"Yes, we are matching on selected routes," Virgin spokeswoman Amanda Bolger said.
QantasLink, meanwhile, has announced plans to buy 10 72-seat Bombardier Q400s for $200 million. The Q400s will enter service next year.
Qantas shares lost 1¢ to $3.65 and Virgin Blue shares rose 7 ¢ to $1.96.
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Last edited by Wirraway; 13th Jan 2005 at 14:51.
here's the breakdown of some of the taxes and charges that go on top of a 'cheap' JetStar ticket:
taxes and charges
Airport & ASA charges make up the bulk of the cost - more than the face value of the ticket itself...
taxes and charges
Airport & ASA charges make up the bulk of the cost - more than the face value of the ticket itself...
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Sat "Sydney Morning Herald"
One-way air fares plunge to $9 but fees and surcharges take off sharply
By Scott Rochfort
January 15, 2005
Qantas's budget offshoot, Jetstar, has quietly increased the fees, surcharges and taxes on more than half its domestic flights after opening its much-hyped $9 one-way seat sale.
After advertising 300,000 bargain tickets on its website last month, Jetstar has cut its one-way base fares from Sydney to the Gold and Sunshine coasts from $19 to $9. But the one-way fares to both destinations have risen by $4 to $53, because the airline has lifted its surcharges, fees and taxes from $30 to $44. (One-way fees in the other direction are slightly lower.)
Deducting the $12 fuel surcharge introduced in October, the extra fees on Jetstar flights to both destinations have nearly doubled.
Virgin Blue and Qantas have maintained their charges.
A Jetstar spokesman, Simon Westaway, said the rises reflected the "true cost" of airport, landing, aeronautical, fuel, security levies and other charges borne by Jetstar. The airline had previously absorbed additional costs "for marketing reasons", he said. "There seems to be a lot of debate about this, but at the end of the day you have to observe what the final fare is." Jetstar declined to give a breakdown of extra fees for commercial reasons.
Mr Westaway pointed out that fees and charges to some Jetstar destinations had fallen. Of the 58 routes flown by the airline, fees were lower on 16. The biggest one-way drop of $9 was from the Gold Coast to Adelaide. Fees rose on 32 of the routes.
Sydney has borne the brunt of the fee increases. Compared with the $44 in fees Jetstar charges on its Sydney-Gold Coast and Sunshine Coast legs, Virgin Blue charges $30.
Rockhampton Airport said it was puzzled over Jetstar's fees increase for fares into the airport. From Sydney, Jetstar's one-way fees into Rockhampton have risen by $6 to $46. "We're trying to work that out ourselves," said the airport's general manager, David Blackwell. "I would have thought that if you are charged for something they would provide a decent breakdown."
The deputy chief executive of the Australian Consumers Association, Norm Crothers, said it was ludicrous and deceptive to quote fees, surcharges and taxes on tickets without a clear breakdown of those costs.
Gold Coast Airport's managing director, Dennis Chant, called for Jetstar to be more transparent in its pricing.
As for the $14 fee increase on Jetstar flights from Sydney, he said charges at the airport had barely moved. "It wouldn't be more than 20 or 30 cents [a ticket], if there's any increase," Mr Chant said.
The chairman of the Australian Competition and Consumer Commission, Graeme Samuel, said he would only look into the issue if consumers had to do a "huge mathematical calculation" to work out the final air fare. At present it was still simple for consumers to work out the final fare, he said.
==========================================
One-way air fares plunge to $9 but fees and surcharges take off sharply
By Scott Rochfort
January 15, 2005
Qantas's budget offshoot, Jetstar, has quietly increased the fees, surcharges and taxes on more than half its domestic flights after opening its much-hyped $9 one-way seat sale.
After advertising 300,000 bargain tickets on its website last month, Jetstar has cut its one-way base fares from Sydney to the Gold and Sunshine coasts from $19 to $9. But the one-way fares to both destinations have risen by $4 to $53, because the airline has lifted its surcharges, fees and taxes from $30 to $44. (One-way fees in the other direction are slightly lower.)
Deducting the $12 fuel surcharge introduced in October, the extra fees on Jetstar flights to both destinations have nearly doubled.
Virgin Blue and Qantas have maintained their charges.
A Jetstar spokesman, Simon Westaway, said the rises reflected the "true cost" of airport, landing, aeronautical, fuel, security levies and other charges borne by Jetstar. The airline had previously absorbed additional costs "for marketing reasons", he said. "There seems to be a lot of debate about this, but at the end of the day you have to observe what the final fare is." Jetstar declined to give a breakdown of extra fees for commercial reasons.
Mr Westaway pointed out that fees and charges to some Jetstar destinations had fallen. Of the 58 routes flown by the airline, fees were lower on 16. The biggest one-way drop of $9 was from the Gold Coast to Adelaide. Fees rose on 32 of the routes.
Sydney has borne the brunt of the fee increases. Compared with the $44 in fees Jetstar charges on its Sydney-Gold Coast and Sunshine Coast legs, Virgin Blue charges $30.
Rockhampton Airport said it was puzzled over Jetstar's fees increase for fares into the airport. From Sydney, Jetstar's one-way fees into Rockhampton have risen by $6 to $46. "We're trying to work that out ourselves," said the airport's general manager, David Blackwell. "I would have thought that if you are charged for something they would provide a decent breakdown."
The deputy chief executive of the Australian Consumers Association, Norm Crothers, said it was ludicrous and deceptive to quote fees, surcharges and taxes on tickets without a clear breakdown of those costs.
Gold Coast Airport's managing director, Dennis Chant, called for Jetstar to be more transparent in its pricing.
As for the $14 fee increase on Jetstar flights from Sydney, he said charges at the airport had barely moved. "It wouldn't be more than 20 or 30 cents [a ticket], if there's any increase," Mr Chant said.
The chairman of the Australian Competition and Consumer Commission, Graeme Samuel, said he would only look into the issue if consumers had to do a "huge mathematical calculation" to work out the final air fare. At present it was still simple for consumers to work out the final fare, he said.
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I brought that up in an earlier post Icarus.
Have asked the questions, and am being ducked right left and centre at the moment.
The taxes and charges are obviously going straight into the airline's unearned revenue account, and then no doubt straight out onto the short term money market.
No wonder they are dodging questions.
Best
EWL
Have asked the questions, and am being ducked right left and centre at the moment.
The taxes and charges are obviously going straight into the airline's unearned revenue account, and then no doubt straight out onto the short term money market.
No wonder they are dodging questions.
Best
EWL
Where does it go?
Neil Mitchell asked that on 3AW yesterday morning (Tuesday), and today announced that the ACCC has expressed its concern, and is investigating.
