Why are Regional Airline Flights so dear?

[irv]

I know the answer before I post this, but it is frustrating. Flight from Port Macquarie to Sydney on Qantaslink varies from on average $146 each way to $500 each way, depending on day and time. Since Virgin started flying in and out competition has improved but still way over the top, and Virgin can and is at times dearer. You can get a flight out of Newcastle to Melbourne on Jetstar starting at $59 each, which is only a 90 Minute flight. A flight from Port to Melbourne on either Qantaslink or Virgin is around $1,000 return and entails flight changes. Something is just not right

 

[Sprucegoose]

Two words

Supply

Demand

 

[lovestotravel]

Two words

Economics 101

 

[RB]

I know the answer before I post this, but it is frustrating. Flight from Port Macquarie to Sydney on Qantaslink varies from on average $146 each way to $500 each way, depending on day and time. Since Virgin started flying in and out competition has improved but still way over the top, and Virgin can and is at times dearer. You can get a flight out of Newcastle to Melbourne on Jetstar starting at $59 each, which is only a 90 Minute flight. A flight from Port to Melbourne on either Qantaslink or Virgin is around $1,000 return and entails flight changes. Something is just not right

I think you must be looking to buy at the wrong time or have little lead time. I have PQQ-SYD flights booked through to Jan 2014 & I think they are some of the cheapest I have ever purchased. One booking on QF 2nd Jan 2014 one way was $59, Virgin flight in Nov 2013 $75 including paid luggage. I acknowledge these were made well in advance but all flight times were available

 

[Mal]

Three words.

Lack of competition.

 

[anat0l]

Three words.

Lack of competition.

True in a way.

Which of the routes are subsidised by the NSW government? (I believe it's similar for other regional flights about Australia)

I'd imagine without the subsidy surely the prices would be higher, but at the same time there is regulation which keeps the number of flights operated to some minimum. (This may not apply to the OP's example but for regional flights in general).

I don't know about other regions but in QLD and WA the resource industry basically bankrolls whatever inventory on some regional flights.

With the golden triangle being a major trampling ground, it is absolutely no surprise that these fares are, by and large, amongst the cheapest in the network (but probably also deliver the smallest at-face margin on the cheapest seats to the respective airlines).

 

[Conrad_S]

As others have said supply and demand. Have you seen the price of airfares in and out of Melbourne this coming weekend.
Flights to and from Port Macquarie can be quite expensive but are regularly discounted. Qantas discounts to $79 quite frequently on all but the early flight. If you buy more than a week or two out it normally doesn't cost more than $125. We flew MEL-PQQ a couple of weeks ago for $125 each. I don't find Virgin to be any cheaper.

 

[irv]

I think you must be looking to buy at the wrong time or have little lead time. I have PQQ-SYD flights booked through to Jan 2014 & I think they are some of the cheapest I have ever purchased. One booking on QF 2nd Jan 2014 one way was $59, Virgin flight in Nov 2013 $75 including paid luggage. I acknowledge these were made well in advance but all flight times were available

A bit different when you live here and need to book flights for work etc, is no lead time under those circumstances. I presume your cheap flights are for leisure, if so would you have paid a few hundred dollars for the same thing.

 

[irv]

As others have said supply and demand. Have you seen the price of airfares in and out of Melbourne this coming weekend.
Flights to and from Port Macquarie can be quite expensive but are regularly discounted. Qantas discounts to $79 quite frequently on all but the early flight. If you buy more than a week or two out it normally doesn't cost more than $125. We flew MEL-PQQ a couple of weeks ago for $125 each. I don't find Virgin to be any cheaper.

So I am looking to book in August, some six weeks away, Qantas PQQ to Melbourne $305 each, can fly back on a $267 fare each, that's $1,144. Virgin can get flight PQQ to Mel $209 each (not too bad) return $273 each, total $967 with charges, long way from from $125 each, each way. I am well aware of the economics, however PQQ now has over 20,000 passenger movements a year and 53 flights a week, plus the airport is being extended to cater for larger planes. It is the inconsistency of the fares that is frustrating, if you need to catch the early flight for work purposes you will pay a premium.

Always dearer flying out than flying in, great for the local economy, frustrating for the locals. Anyway that's my rant for the day

 

[Conrad_S]

So I am looking to book in August, some six weeks away, Qantas PQQ to Melbourne $305 each, can fly back on a $267 fare each, that's $1,144. Virgin can get flight PQQ to Mel $209 each (not too bad) return $273 each, total $967 with charges, long way from from $125 each, each way. I am well aware of the economics, however PQQ now has over 20,000 passenger movements a year and 53 flights a week, plus the airport is being extended to cater for larger planes. It is the inconsistency of the fares that is frustrating, if you need to catch the early flight for work purposes you will pay a premium.

Always dearer flying out than flying in, great for the local economy, frustrating for the locals. Anyway that's my rant for the day

I agree about the inconsistency but my argument is that occurs in all markets (flights).
I am a port resident and fly from here around 40 times a year, mostly business. I do have the benefit of being able to book many of the flights 6-9 months out.
My experience with virgin is that there is normally not much difference on fares

 

[markis10]

True in a way.

Which of the routes are subsidised by the NSW government? (I believe it's similar for other regional flights about Australia)

I'd imagine without the subsidy surely the prices would be higher, but at the same time there is regulation which keeps the number of flights operated to some minimum. (This may not apply to the OP's example but for regional flights in general).

I don't know about other regions but in QLD and WA the resource industry basically bankrolls whatever inventory on some regional flights.

With the golden triangle being a major trampling ground, it is absolutely no surprise that these fares are, by and large, amongst the cheapest in the network (but probably also deliver the smallest at-face margin on the cheapest seats to the respective airlines).

In NSW the following destinations to SYD are not regulated (not subsidised)

• Albury
• Armidale
• Ballina
• Coffs Harbour
• Dubbo
• Griffith
• Lismore
• Orange
• Port Macquarie
• Tamworth
• Wagga Wagga
• Williamtown
• Routes not linked to Sydney Kingsford Smith Airport

 

[UP4014]

Even with the subsidy routes like Cobar can have wild up and downs on pricing by 100%.

Matt

 

[spreezy]

two words

cry more