Fares are rising: take note, JohnK

[Melburnian1]

One of AFF's more visible contributors, the redoubtable JohnK has commented in the past about rising airfares.

While the Federal Government's BITRE publishes an air fare index series (domestic fares not international), this brief report re ratings agency's Moody's findings may come as no surprise to frequent travellers, especially the minority of business travellers who purchase tickets out of their own pocket rather than a corporate, BFOD or not, purchasing them:

Nocookies | The Australian

If the paywall defeats you simply type in the story name into Google ('rising domestic fares a boost for airlines.')

Unfortunately there are no specifics as to how much air fares have risen.

Depending on their elasticity, the airlines may want to be careful before they kill or at least maim the golden goose on the golden triangle (and to and from the West!)

 

[opusman]

Depending on their elasticity, the airlines may want to be careful before they kill or at least maim the golden goose on the golden triangle (and to and from the West!)

Without a fast train as a viable alternative there's not much risk in it for the airlines.

 

[JohnK]

More fare increases?

No wonder JQ and TT are demanding $200+ for one-way Easter weekend flights.

 

[harvyk]

Without a fast train as a viable alternative there's not much risk in it for the airlines.

There is still a risk for the airlines, people can and will decide it's too expensive to travel. For holiday's or weekends away they can chose alternate destinations, or alternate modes of transport, for businesses they will determine if the extra cost is something they are willing to absorb or if teleconferences or other remote working solutions are available.

We ourselves decided that to fly CBR-MEL next month was going to be too expensive, so we're driving. There are always alternatives, especially in the golden triangle.

 

[Melburnian1]

Without a fast train as a viable alternative there's not much risk in it for the airlines.

A BNE - OOL - CFS - NTL - SYD and SYD - CBR - ABX - MEL high speed train is a viable alternative in many cases. Unfortunately our politicians have not started proper planning or construction of it.

What JB of VA keeps referring to as slack demand for leisure travel buttresses harvyk's valid point about alternatives existing right now. Some may abandon that second mini-holiday (weekend away?) if the fares are too high, in addition to all the other alternatives discussed above.

For some businesses such as higher ranked barristers and solicitors, and high profile accounting firms (the Big 4), fares may not matter much if at all: they just charge the client or up their hourly rate to pay for any fare increase, or alternatively already enjoy huge profits so just absorb the cost. But not every businessman is able to do this. Some are (to use that magic set of words) 'self funded.'