Australia, New Zealand & the Pacific Airline and RPT Rumours & News in Australia, enZed and the Pacific

QF gouging on US routes

Old 1st Jun 2011, 08:55
  #1 (permalink)  
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QF gouging on US routes

Did anyone see the media today on this in SMH.

Remember QF the Australian airline if your are from anywhere but Australia.

This is the part of the airline they say is unsustainable, so if they cannot make money with these fare structures they don't have a chance do they.

I am getting tired of this story.
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Old 1st Jun 2011, 10:10
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Didn't 75% of QF's profits come off the pacific route before VAus' entry? I am sure I read it somewhere...
wheels_down is online now  
Old 1st Jun 2011, 13:00
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Is this the article you were referring to?

Australia to USA flights | Qantas | Airlines charge more for Australians

Australians flying Qantas to the US face prices up to 60 per cent more than Americans pay to fly here with the same airline.
Figures show that, despite the strong Australian dollar being worth more than the Greenback, return flights on Qantas's new Dallas route cost hundreds of dollars more for Australians.
Qantas is charging Australians a lead-in economy return fares of $A2004 to fly Sydney-Dallas-Sydney.

Read more: Australia to USA flights | Qantas | Airlines charge more for Australians

Yet the airline charges from only $US1578 ($US1438 fare, plus $US140 to $US210 in US government fees) for Americans to go Dallas-Sydney-Dallas on the same planes.
When the exchange rate is taken into account, the difference in pricing is even more stark.
At today's exchange rate, the $US1578 return ticket bought in the US translates to just $A1473, making the price difference a whopping $A531.
The $531 premium Australians pay is 36 per cent more than Qantas charges Americans on the same route.
But the disparity gets worse.
The lead-in US fare is for flights between October 26 and November 16. Australians flying in late October on the same plane could be paying as much as $2404 return, or an additional $931 63 per cent more than Qantas charges Americans.
And the disparity isn't confined to Qantas' Dallas route.
Americans flying Qantas economy return Los Angeles-Sydney pay from just $US1318 ($US1178 fare plus additional US government fees of $US140 to $US210) the equivalent of $A1231.
Fly to Sydney-LA return and the cheapest Qantas flight costs Australians $1854, a difference of $623, or 50 per cent more than the US fare.
Fairfax Media asked Qantas for an explanation.
"We price to match market conditions and demand in a particular country. In the United States, Australia and Qantas are competing for potential visitors with many other destinations and airlines, so we need to offer sufficiently attractive fares to generate demand," Qantas spokesman Thomas Woodward said.
"In Australia, the United States is currently a popular destination, with high demand for travel there being driven by the strong Australian dollar, so the lead-in fares are higher to reflect that demand," he said.
So there it is: Qantas charges Australians 50 per cent more to travel than Americans flying in the opposite direction, because it can.
"Regardless of the differences between the markets, we believe our lead-in fares for travel to the US from Australia and from the US to Australia are good value," Mr Woodward said.
But Qantas is not alone in the practice.
Virgin Australia has a lead-in economy Sydney-LA-Sydney special for $1689.
Book from the US end and fly in the opposite direction and it costs Americans from $US1258 ($US1158, plus US government fees of $100 to $250), the equivalent of $A1175.
That's a difference of $514, or a 44 per cent hike for Australians over the US fare.

Read more: Australia to USA flights | Qantas | Airlines charge more for Australians
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Old 1st Jun 2011, 14:05
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Well, we do now have a choice.............

The only way to get rid of the un-Australian maggot running this airline is to make it clear to the board.
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Old 1st Jun 2011, 14:16
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This [email protected]#$% ticket pricing rort has been going on for decades.

I used to fly from US to Aust and return often and the pricing disparity was often at least 200 USD on the ticketprice alone omitting the huge diff in govt fees depending which end you start the trip in. When that is added in its even worse.

Sometimes though in past 15yrs after converting the dollars it was often cheaper to fly from Aust to the US and back instead of the other way around.

Problem is the airlines wouldnt let you buy a ticket at the other end to use. That is ,have a friend book /pay for the trip at the US end, mail you the "ticket" so you could fly SY-LAX-SY for eg.
Don't know if that is still the case but that is what I was repeatedly told.
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Old 1st Jun 2011, 21:15
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Same thing goes on domestically in the USA, a return ticket from Miami to Kansas City is more expensive than a return ticket from Kansas City to Miami.

Reason being, someone in Kansas wanting to travel to Miami is going on holiday and has plenty of other places he can go if he doesn't like the price. Someone in Miami going to Kansas City is going there for a reason (family/business) and can't simply go somewhere else, therefore he pays more.
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Old 1st Jun 2011, 22:34
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Like any business, QF charge what they can get away with in each location; they aren't a co-op for the good of the people.

The supermarkets charge more in the rich end of town because they can; landlords charge as much rent as they can without the tenants squealing too much or walking; it's cheaper for a Kiwi to book a flight from Australia to New Zealand using the Australian website; it's not price gouging it's just market forces, IMHO.
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Old 1st Jun 2011, 23:54
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QF charge what the market will take. That is business. If customers dont like it fly with someone else. If people don't fly they must drop fares.
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Old 2nd Jun 2011, 01:10
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We're in biz to make money (sorry shareholders and staff the money is for Exec bonuses mainly) - that said it seems that there are not a lot of seats without bums on them so the price is either appropriately market geared or there's not enough capacity.

- will be interesting though to see what JQ charges when SFO & LAX start seeing orange stars in the not too distant future. ( Question to the JQ people ....... did the meetings go in the US last week???)

airtags is offline  
Old 2nd Jun 2011, 11:28
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wheels, close man but it was 20% for the Pacific run and international contributed 75% to the whole profit only a decade ago.
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Old 2nd Jun 2011, 16:22
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The disparity between airfares between Australia and OS has been going on for sometime. I checked out airfares between here and the US over 10 yrs ago for my sister (LAX-SYD) and it was 30-40%. This was before you could book oneway tickets at the same rate as a return ticket. I guess if you have rellies OS you could get them to book and pay with a OS credit card for two separate journeys!

After joining CX I found the same between HK and OZ. My guess is that the home airline gets to charge more out of its base than its OS competitors as I gather they have a greater presence and therefor a competitive edge on getting away with higher priced tickets.
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Old 2nd Jun 2011, 20:12
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On SYD-LAX United have a superior business class product for a lot less money.

If AJ really wants to insist that I fly UA instead of QF, well, good on him.
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Old 3rd Jun 2011, 10:28
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On SYD-LAX United have a superior business class product
How so?

Details much appreciated.
standard unit is offline  
Old 3rd Jun 2011, 11:53
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* The food's nicer

* Seats are better (compared with QF's 744 J/C seats)- they lie flat, and have more padding than QF's

* IFE is better; 15 inch, higher resolution displays, you can use your own standard headphones without the silly adaptor, more content than the QF 744, seems to crash less than the QF 744 IFE, and they've got live cockpit VHF COM audio

* UA use NZ's lounge in Sydney, which has a better fitout, food selection and drink availablity than the QF business lounge, which QF have been cutting back progressively over the years.

* Domestic connections from LAX leave from the terminal immediately next door to where you arrived. As opposed to with QF, where you arrive at the war zone generally known as TBIT, wander outside and then find your way to whichever distant terminal you need to be at for your connection.

* Cabin crew are generally very good on both sides, you always have the occasional exception though.

Though I suppose, what would AJ know about having a premium product? The likes of the Orange Cancer are more his thing

Last edited by bankrunner; 3rd Jun 2011 at 12:07.
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Old 3rd Jun 2011, 12:28
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Sorry but wasn't the skybed a game changer when they relased it because it was the first fully reclining seat or something like that.

Doesn't it lie fully flat?
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Old 3rd Jun 2011, 12:47
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Only the A380 version. The B744 version isn't quite flat, this is supposed to change at some point though.
bankrunner is offline  
Old 3rd Jun 2011, 23:23
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Wouldn't you actually have to invest money for that to happen
Wait maybe if they cut some of out it it will lie flat.
stewser89 is offline  
Old 4th Jun 2011, 05:16
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Try Adelaide London return

This is a route I use regularly and it has been cheaper for me to have a one way ticket to London then book return London Adelaide flights from the U/K end. Believe it or not this saves me over $500 per trip several times per year. Very un Australian by QF.

maggot738 is offline  
Old 4th Jun 2011, 14:07
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I have a lot of J Class passengers on the SYD LAX run and unfortunately QF is losing to the others on a price basis.

I just ran a comparison with QF and some others for an October departure and the results are as follows for an October departure.

Fares include taxes but not Agent fees.

Qantas $9045.24
United $6698.24
Delta $6689.24
Air Pacific $6626.24

I can't he;p but think that the Rat is overpricing a product that is indeed excellent but my passenger reports indicate that the Delta product is excellent and that United is a surprise too.

Air Pacific suffers from being via NAN and not the same quality in seating.

That patch of water is still overpriced on a mileage basis, but I guess if the Airlines are forced to deop fares there then the missing dollars will be loaded onto other routes.

Such is our world.

Best all

Eastwest Loco is offline  
Old 4th Jun 2011, 15:40
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While I'd like to support the Rat, it's not my money. I get J class flights overseas as part of my employment conditions but when my boss asks "why did you fly QF for $9000 when United was $6700", what do I tell him? He's not going to see much business value in that $2300.
bankrunner is offline  

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