Qantas-Jetstar already gouging essential travellers

[DrGBanks]

I wonder if AFF could shine a light onto Qantas and Jetstar's current pricing? Jetstar in particular - given Qantas have so few flights at the moment. Just look at the SYD>MEL>SYD leg. Jetstar have doubled and in some cases quadrupled prices for this leg - at a time when its just essential fliers travelling. If this is not gouging at its most unconscionable, I don't know what is. But perhaps AFF might also like to provide the ACCC with an update on Qantas' current profiteering strategy?

 

[oz_mark]

I wonder if AFF could shine a light onto Qantas and Jetstar's current pricing? Jetstar in particular - given Qantas have so few flights at the moment. Just look at the SYD>MEL>SYD leg. Jetstar have doubled and in some cases quadrupled prices for this leg - at a time when its just essential fliers travelling. If this is not gouging at its most unconscionable, I don't know what is. But perhaps AFF might also like to provide the ACCC with an update on Qantas' current profiteering strategy?

I don't think airlines are a terribly profitable enterprise at the moment. And given there are so few flights they are in demand. You can choose to go, or not.

ACCC generally doesn't regulate prices...

 

[UP4014]

I wonder if AFF could shine a light onto Qantas and Jetstar's current pricing? Jetstar in particular - given Qantas have so few flights at the moment. Just look at the SYD>MEL>SYD leg. Jetstar have doubled and in some cases quadrupled prices for this leg - at a time when its just essential fliers travelling. If this is not gouging at its most unconscionable, I don't know what is. But perhaps AFF might also like to provide the ACCC with an update on Qantas' current profiteering strategy?

If you can point to the profit, then there is a complaint. I seriously doubt using an aircraft once per week or day is making money.

 

[dajop]

Just look at the SYD>MEL>SYD leg. Jetstar have doubled and in some cases quadrupled prices for this leg - at a time when its just essential fliers travelling. If this is not gouging at its most unconscionable, I don't know what is.

If the flights are running full (which I doubt), may well be gouging. If the flights are running quite empty (which is likely), almost certainly not gouging.

 

[jakeseven7]

If the flights are running full (which I doubt), may well be gouging. If the flights are running quite empty (which is likely), almost certainly not gouging.

My partners Syd-Mel was 100% full.

Other reports on AFF suggest both QF and VA flights on some routes are very full and both airlines fares are definitely not 'on sale'!

 

[Mattg]

My partners Syd-Mel was 100% full.

Other reports on AFF suggest both QF and VA flights on some routes are very full and both airlines fares are definitely not 'on sale'!

Aren't the airlines still blocking middle seats for the time being? I wouldn't have thought any domestic flights were "100% full" at the moment. (That said, I realise QF & JQ are changing their policy from 12 June.)

From a revenue management point of view, I can understand why prices would be high while the government is advising people not to travel. Unlike in normal times, lowering fares is unlikely to stimulate demand as people currently don't want to or are not allowed to travel for leisure. Meanwhile, there are still some people that do need to travel, and they are unlikely to be price sensitive because they are travelling for essential reasons. When the price elasticity of demand is less than 1 (which it normally isn't in the Australian domestic market, but probably is now) airlines can make more money by raising fares. So they do.

 

[dajop]

airlines can make more money by raising fares.

Or in the current environment "airline can lose less money by raising fares"

 

[offshore171]

I wonder if AFF could shine a light onto Qantas and Jetstar's current pricing? Jetstar in particular - given Qantas have so few flights at the moment. Just look at the SYD>MEL>SYD leg. Jetstar have doubled and in some cases quadrupled prices for this leg - at a time when its just essential fliers travelling. If this is not gouging at its most unconscionable, I don't know what is. But perhaps AFF might also like to provide the ACCC with an update on Qantas' current profiteering strategy?

Profiteering? They are bleeding money hand over fist.

Remember if they are only operating a handful of flights per week, they still have a massive fixed-cost base.

Pre corona pricing was based on hundreds of thousands of PAX per week to cover fixed costs.

Now they are doing maybe 1% the PAX volume. You think the pricing economics are the same?

 

[albatross710]

I just looked at random dates SYD-MEL. Jetstar doesn't look so bad booking in advance

 

[muppet]

I think the OP raises a good point.

These fares are government subsidised to some extent and charging high fares because you know that the people travelling are doing it out of necessity would be the definition of gouging wouldn’t it?

You can’t price gouge discretionary travel because people will just not travel...

I don’t think a company has to be profitable for an individual transaction to be considered gouging either.

However, i had a look at dates later this week and the prices seem to be standard fares. No absolute dirt cheap fares but the usual non-discounted fares so i don’t think gouging is happening much.

Edit: posted after @albatross710 and those prices are definitely not gouging. I did see some today for $1500 return but usual last minute fares is a better explanation

 

[offshore171]

Just a word of caution.

OP is a first time poster. On these boards when a first time poster comes in all guns blazing with ACCC threats etc, it’s often (not always) the sign of a troll.

Prepared to give the OP the benefit of the doubt, especially if they follow up with a reasoned response, but there’s also the chance they are a 1 hit wonder

 

[andye]

I rarely see such trolls. Usually they are people who are unhappy due to a perception of unfair treatment. Often their upset is justified but sometimes they dont have the experience and encyclopaedic knowledge of airlines/rewards programmes that is collectively on AFF.

 

[p--and--t]

If you running an operations centre, airport staff, IT department, admin, etc geared for a 18,000 mainly full flights per month as opposed to currently a couple dozen a week at 60% occupancy, there just might be a few overheads that aren't distributed so thinly as before.

 

[p--and--t]

Just a word of caution.

OP is a first time poster. On these boards when a first time poster comes in all guns blazing with ACCC threats etc, it’s often (not always) the sign of a troll.

Prepared to give the OP the benefit of the doubt, especially if they follow up with a reasoned response, but there’s also the chance they are a 1 hit wonder

Joined today, one post only. Came and went in the space of an hour........you could be right

 

[drron]

Well I have just had my flights back from LST to BNE booked.
I had 2 choices.LST-MEL-CBR-BNE all on the delightful Crash 8.$533 with the less than 5 seats.Fully Flexible is over $1000.But I het to BNE at 1800.

2nd choice LST-CBR-SYD-BNE with the last sector on a 738.Only $500 but arrives in BNE at 2230.

So I am going LST-BNE all the way on a crash 8 but saving 4.5 hours elapsed journey time.

 

[straitman]

Please leave the worries about the OP to the moderation team. IF there is a specific issue then please send in a report.

Thanks.

 

[flydoc]

LST-CBR

New route?!

 

[jakeseven7]

Well I have just had my flights back from LST to BNE booked.
I had 2 choices.LST-MEL-CBR-BNE all on the delightful Crash 8.$533 with the less than 5 seats.Fully Flexible is over $1000.But I het to BNE at 1800.

2nd choice LST-CBR-SYD-BNE with the last sector on a 738.Only $500 but arrives in BNE at 2230.

So I am going LST-BNE all the way on a crash 8 but saving 4.5 hours elapsed journey time.

Sounds like fun to me!!

Trip report?

 

[drron]

New route?!

I often try and forget MEL.Put it back in though.

 

[Melburnian1]

Given that these flights are attracting a government subsidy, why doesn't any agreement specify maximum allowable fares?

Some (if not many) of those using these flights may be travelling to attend funerals, yet high fares are still charged. It's subjective as to what is 'reasonable' but aqnything above $200 one way in whY for a single SYD-MEL journey is expensive.

No one can disagree that both major carriers - one close to bankrupt, and the other losing money hand over first - are not experiencing good trading, but the 'minimum domestic network' profits aren't meant to cover, and couldn't realistically, all overheads for transport providers that normally have more expansive networks with far more frequent flights.