Potential Airline Price War To Australia
 

TVNZ

Potential Airline Price War To Australia
TVNZ
11/02/2005
NewstalkZB

Budget airline Virgin Blue's Pacific Blue is launching direct flights from Auckland to Australia, signalling a potential price war between carriers.

The first services will take off between Auckland and Brisbane, and Auckland to the Gold Coast, and will be as low as NZ$89 plus taxes.

They start on May 12.

Pacific Blue's CEO Tony Marks expects competitors to respond with fervour to the announcement, potentially creating a price war in the Auckland flight travel market.

He says when Pacific Blue entered the market in both Christchurch and Wellington it put pressure on competitors, and he expects the same in Auckland.

Mr Marks says fares came down and competitors made changes and now it is Auckland's turn to benefit.

He expects Pacific Blue's entry will improve fare prices from Auckland across the Tasman.

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I wonder if they've forgotten that DPS is still there?


K

...so it's not $89 then....

The Auckland - SE QLD sector is currently not well supported by QF with only one direct flight a day, so I imagine that this will be the catalyst for expansion? This would work well in the master plan, as it attacks two of it's enemies - Virgin and Air NZ through Freedom...

but..... pacific blues wellington-sydney flights are being axed, and one christchurch-sydney flight is going

Seems that all airlines are allowed to advertise like this at the moment. Imagine the price of petrol like that 20 cents + taxes and charges. Makes you realise who is making all the money out of travel.

If you hire a circular saw in the N.T. it costs $35 plus government taxes (GST) and charges (state hire tax).

Registering your car costs 'bugger-all' plus lots of taxes and charges.

Buying a set of tyres costs as per the junk mail plus taxes and charges (GST, greenies levy on burning tyres etc)

Having your car serviced costs $x.xx plus a whole stack of taxes and charges relating to disposing of oil and other crap like 'consumables'.

A meal in Singapore will cost you the menu price plus, plus, plus (if you've been there, you'd know).

Sorry Gang, it's the way of the world.


K

Wasn't it young Bretty that squealed like a stuck pig when QF and J* did this? Didn't he put full page ad's in all major Aussie newspapers condemning the practice? Now he is doing it?

Jeez, he can't have been too serious, can he? Gasp, was it just another shallow publicity stunt? Bretty, I'm disappointed in you.

PS Has he been done for insider trading yet?

schnauzer, you snapperhead.
Yes, Bretty whinged and whined for the airlines to advertise all inclusive prices so that what you saw advertised was what you paid. None of this $9 fare deal then when you go to pay for it costs you $49-$59 cr#p. I thought it was great.
Now the ever just as much whinging Qantas goes to some commission and tells them that The Red Rat, AA and J* don't want to do it that way, as it doesn't engourage people to be fooled into going to the website to get a good deal and then get rodgered, so we're going to go back to tricking people.
VB is now not on a level playing field, so have to do the same to compete.

Lifted from the VB website.

It's just not Fair
An important message to our guests and partners in travel and tourismPreviously when you booked a flight with Virgin Blue, or saw us advertise our fares, we only quoted one price - no hidden taxes, no nasty surprises, just straight forward totals.

It was called 'all inclusive' pricing (meaning one price including the fare and all the taxes). Simple, upfront, very Virgin Blue. No calculators needed, to add taxes to the fare.

For the past two years all Australian domestic airlines advertised their fares this way.

We were complying with an undertaking entered into by all major domestic airlines and the Australian Competition and Consumer Commission (ACCC).

Virgin Blue was delighted – we were proud to have championed the cause that all inclusive air fares were easier for our customers and should become the industry standard.

Regrettably not all airlines feel the same.

Recently our competitors Qantas and Jetstar sought to do away with the ACCC undertaking, which is why regrettably, we are now all returning to the old concept - advertising the airfare only (and by the way taxes, charges, levies, fees and so on are additional).

We think it’s a lamentable practice, but as Qantas and Jetstar are again advertising their fares this way; we are also forced to do so, to remain competitive in the market.

Anyone who has ever been thrilled with their low fare only to find later that airport and other taxes add on quite a bit, will know exactly what we mean.

We might not be a big airline but we continue to see this as a big issue.

If you feel the same, we encourage you to do as we have – contact the ACCC, the Australian Consumers Association or your local federal parliamentarian and let them know your views.

Australians deserve an upfront, ‘what you see is what you pay approach’ – otherwise it’s just not fair.

Brett Godfrey
CEO

Ohhhh, Big Hairy One, I'm just about moved to tears! :{ :{ :{

Bretty, whining yet again, in a voice which is pitched higher than Jeanie Little...:ugh: :ugh: :yuk:

So has he put something on his website about his insider trading, too?:ouch: