Capacity rationalisation and fare costings

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I've been noticing on some of my most regular domestic routes, that getting a cheap seat on VA is getting harder and harder. Recently I asked a check-in lady at MKY if VA had reduced flights and she confirmed they had, but it was variable across days as to which flights were taken out. I paid an unheard of (for me) $500+ for a return BNE-MKY flexi seat as there was no cheaper fare buckets left, more than a week out from flying. Similarly this week, I was searching BNE-HTI and BNE-PPP flights and very few saver lites left for weeks to come.

We were warned that QF was ending the capacity war and this seems to be showing already (even on non-QF routes). Am I just unlucky of late or are others also noticing what appears to be reduced capacity on flights and possible reduced capacity in the cheaper fare buckets pushing prices up dramatically?
 

Pleb Status

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QF are in the process of removing the fifth PER-BNE-PER flight (QF572/573) and getting the cheapest fares on adjacent flights is getting more difficult (particularly QF597). They are also trying to move the Class E fare up to $245 ow from under $200 ow during the peak of the fare war.
 

Captain Halliday

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VA prices are certainly creeping up ex DRW (saver lite). My estimate is ~$40 to $50 per sector to the other capitals. So to is QF. Red-E to BNE was $219 early this year, but best you'll do now is $235. Interesting as QF have also added capacity temporarily with an afternoon 737 service. My guess is that they will blame seasonal factors for the creep.
 

pauly7

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My friends who are under the most hated BFOD policy's are saying they are now flying QF a lot more than they used to so maybe the price creeps by both airlines have not been as uniform as we thought... (Sample of 3 though!)
 
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Shan Man

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I've noticed the cost of a flexi MEL-SYD is now $325 vs the $285 earlier this year.

Also harder to get red-e-deals 7 days out anymore! Might have to look at 8 :p
 

bismarck

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It is the key sign of the end of a price war.....start pushing up the price in the more expensive fare buckets. Primary signal to your competitor that you want to end the war, by raising prices on the less price-sensitive consumers.

I would expect the red e-deal/saver lites to remain around the same levels they are now (perhaps with fewer of them) but the more expensive buckets will steadily increase.
 

OzEire

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Is it just me or is the price of some flights just getting out of control... CBR-SYD one way, nothing special about the dates, QF $305 and VA $279 for a flexi saver/flexi. Just wow, for a 40 min flight in a bug smasher with minimal F&B service.

Talk about gouging a captive market.

The government has special prices for their folks but what about the rest of us! I guess we're just here to be fleeced so they can make up for the deep discounts paid to get the lucrative government contracts.

/rant

OzE
 

JohnK

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And in saying all that VA has just commenced a sale for next year. Not sure if Qantas announced first and Virgin followed but SYD-BNE is $70 and SYD-OOL $59. I have not seen sale airfares that low for a long time.
 

BAM1748

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I'd expect more of this, generally the same number of people want to fly, so reducing flights and running the rest at full capacity is much smarter. Less operating costs and higher revenue, win for the airlines and only the passenger misses out, but in reality probably only the tourist passenger who flies once or twice per year.
 

smit0847

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I've flown MEL-ADL-MEL about every 2 months for the past 6 years. While last minute fares may be creeping up, sale fares have never been cheaper (currently $59).

Standard (non-sale) base fares for travel in 6 weeks time are $85 - this has risen maybe $10 in 5 years. Flexis are $255 but I've never bought a flexi as I don't like flushing my money down the toilet.

If the prices are creeping up across the network they haven't hit this route yet.
 

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QF have just down gauged a few PER-BNE rt services from a 763/332 to a 738. Fares have skyrocketed accordingly from ~AUD300 ow to ~AUD 581 ow on these services (other services are still at the previous pricing).

I have been caught by this change on a few upcoming bookings I need to make and may have to go on VA as they are ~ AUD275 ow at the same time.
 
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