Higher air fares on the horizon

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alien

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Higher air fares on the horizon
By Scott Rochfort
January 24, 2006

THE era of the absurdly cheap domestic airline ticket appears to be over. Signs have emerged that Qantas, Virgin Blue and Jetstar have had one of their best Christmas periods and that airfares could be back on the rise.

Nearly a year to the day since the Virgin Blue chairman, Chris Corrigan, vowed the airline needed to "stop the rapid deterioration in fares", it appears his wishes have come true.

There are expectations the airline, which has struggled to respond to intense competition from Jetstar and high fuel prices, will forecast a rebound in profits.

You can read the rest of the artcile here:

http://www.smh.com.au/articles/2006/01/23/1137864863652.html
 

Mal

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Let me guess. Airlines need to increase the base fare to cover increasing fuel costs?

Hmmmm :roll: :roll: :roll: :roll:
 

straitman

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Mal said:
Let me guess. Airlines need to increase the base fare to cover increasing fuel costs?

Hmmmm :roll: :roll: :roll: :roll:

Now how do you come to that conclusion :?: :?: :?: :?:
 

Mal

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Quite simple really.

Airlines bleat that they are losing money because of high fuel charges. So they tack on Fuel Surcharges.

Then they raise the base fares because they aren't making enough money. Fuel is listed as a reason why they aren't making enough money.

Sounds like double dipping to me. Can't the airlines decide to either recover their fuel through the surcharge, or recover it in the base fare only?

All very convenient for them. 2006 will be remembered as a year where airfares go up quite a bit. Doubt if they will come down in 2007 either...
 

straitman

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Mal said:
Quite simple really.

Airlines bleat that they are losing money because of high fuel charges. So they tack on Fuel Surcharges.

Then they raise the base fares because they aren't making enough money. Fuel is listed as a reason why they aren't making enough money.

Sounds like double dipping to me. Can't the airlines decide to either recover their fuel through the surcharge, or recover it in the base fare only?

All very convenient for them. 2006 will be remembered as a year where airfares go up quite a bit. Doubt if they will come down in 2007 either...

Just kidding Mal. I fully understand and I was just being facetious :!:
 
G

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It's just competition.... the more competition the lower prices will go (and stay) ... just look at USA..... always cheap fares with at least 1 major airline.

To me it seem QF/VB/DS are all comfortable with the positions they are in and don't see why they need to compete so hard against each other anymore. Afterall... add some teamwork and they can rip pax off together and make even more $$$ yayayayay!!!

If you've watched closely...all fares have slowly been rising over the last 4 eyars and I'm not entirely sure the increased cost is justified by the extra/upgraded services offered (apart from skybed).

Comes back to australians have very limited choices and competition and there is nothing we can do about it except refuse to support (jump ship) airlines doing this (all 2 - assuming I'm right)
 

oz_mark

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Some fares (business and full economy) have certainly gone up this year, and Qantas had announced this. Presumably this increase will filter down to the other fares as well.
 
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