Air fares plummet to record lows as competition increases

[Slats7]

Air fares plummet to record lows as competition increases | Travel News | News.com.au

AIRLINE prices have plummeted to record lows as increased competition and the global slowdown uncovers lucrative bargains for Australians.

 

[JohnK]

I wish the same can be said for flights to SE Asia. There is plenty of competition from Australia to the main SE Asia hubs yet airfares are still relatively expensive. If the global economic crisis has affected the Australia-USA route why hasn't it affected the Australia-SE Asia route in the same way?

Airlines will charge what they think they can get away with at any given point in time....

 

[straitman]

Airlines will charge what they think they can get away with at any given point in time....

Isn't that the law of supply and demand in practice :?:

 

[oz_mark]

I wish the same can be said for flights to SE Asia. There is plenty of competition from Australia to the main SE Asia hubs yet airfares are still relatively expensive. If the global economic crisis has affected the Australia-USA route why hasn't it affected the Australia-SE Asia route in the same way?

Airlines will charge what they think they can get away with at any given point in time....

The difference with SE-Asia is that what new competition that exists now compared to a year or so has largely come virtue of LCC's. Jetstar is off stalking Tiger (see PER-SIN where there is QF, SQ, JQ and TR or PER-DPS where GA, JQ, DJ and QZ all fly), and MH have made some price responses to Air Asia X on the Australian routes.

The US route however has had what looks like more traditional carriers swung on it. Also prices tended to be relatively high on routes such as SYD-LAX so they had further to come down.

The SE Asia routes, having more low cost carriers has come down in price but perhaps its not the kind of competition you would prefer!