Qantas-Jetstar already gouging essential travellers | Australian Frequent Flyer
Australian Frequent Flyer

Welcome to Australia's leading independent Frequent Flyer and Travel Resource since 1998!
Our site contains tons of information that will improve your travel experience.

Joining AFF is fast, simple & absolutely free - register now and take immediate advantage of these great BENEFITS.

Once registered, this box will disappear. And you will see fewer advertisements :)

Login Now to remove this and all advertisements (GOLD and SILVER members)
Not a member? Register Now for free

Qantas-Jetstar already gouging essential travellers

DrGBanks

Newbie
Joined
Jun 1, 2020
Messages
1
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

Enthusiast
Joined
Jun 30, 2002
Messages
18,430
Flights
My Map
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...
 

BAM1748

Senior Member
Joined
Jul 22, 2008
Messages
5,916
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

Enthusiast
Joined
Jul 1, 2002
Messages
10,695
Flights
My Map
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

Established Member
Joined
Sep 9, 2005
Messages
2,305
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

Senior Member
Joined
Aug 21, 2011
Messages
9,292
Flights
My Map
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.
 

offshore171

Active Member
Joined
Oct 8, 2014
Messages
639
Flights
My Map
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

Established Member
Joined
May 15, 2004
Messages
3,265
I just looked at random dates SYD-MEL. Jetstar doesn't look so bad booking in advance

1590981907745.png
 

muppet

Established Member
Joined
Jun 19, 2010
Messages
1,013
Qantas
Platinum
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

Active Member
Joined
Oct 8, 2014
Messages
639
Flights
My Map
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

Established Member
Joined
Jan 14, 2013
Messages
4,018
Virgin
Platinum
Flights
My Map
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

Established Member
Joined
Sep 28, 2008
Messages
2,499
Qantas
Bronze
Virgin
Red
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

Established Member
Joined
Sep 28, 2008
Messages
2,499
Qantas
Bronze
Virgin
Red
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

Enthusiast
Joined
Jul 4, 2002
Messages
24,061
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

Enthusiast
Moderator
Joined
Apr 27, 2003
Messages
17,672
Qantas
LT Gold
Virgin
Red
Flights
My Map
Please leave the worries about the OP to the moderation team. IF there is a specific issue then please send in a report.

Thanks.
 

jakeseven7

Established Member
Joined
Sep 9, 2005
Messages
2,305
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?
 

Melburnian1

Enthusiast
Joined
Jun 7, 2013
Messages
20,316
Flights
My Map
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.
 

Community Statistics

Threads
85,950
Messages
2,052,141
Members
53,274
Latest member
aidsvlek
Top