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Qantas blames Coldplay for airfare surge

<p>Qantas has blamed Coldplay's sell-out Australian tour for a surge in airfares, after new data revealed that prices on some routes doubled after Rex Airlines went into administration in July. </p> <p>The Australian Competition and Consumer Commission released their latest report on domestic airline competition on Tuesday, and found the demise of Rex on capital city routes had an almost instant effect on airfares. </p> <p>“The recent spike in airfares corresponds with a less competitive domestic airline sector after Rex’s exit from 11 of the 23 services between metropolitan cities,” ACCC commissioner Anna Brakey said.</p> <p>“While we also typically see a seasonal peak in air travel in September due to major sporting events and school holidays, there were additional pricing pressures this year.</p> <p>"Passengers were no longer able to access the lower fares that Rex offered, and airline seating capacity decreased following Rex’s exit. This in turn has contributed to higher airfares.”</p> <p>One of the largest price increases was on flights from Adelaide to Melbourne, which went up 95 per cent to $296 one-way for discounted economy fares between July and September.</p> <p>Prices on the Melbourne to Gold Coast route increased by 70 per cent to $432 and Canberra to Melbourne by 54 percent to $298. </p> <p>The ACCC report added that prices of domestic flights might not come down until a new third airline comes in to challenge the duopoly that is Qantas and Virgin Australia. </p> <p>Qantas, which also owns Jetstar, and Virgin carried 98 per cent of domestic passengers, according to the ACCC. </p> <p>“The exit of Rex as a third competing airline group on services between metropolitan cities may have significant longer-term impacts on the domestic aviation sector,” Brakey said.</p> <p>However, Qantas Domestic chief executive Markus Svensson criticised the report, saying it only showed "a snapshot of the lowest fares available to purchase on a particular day", without taking into account events, like the Coldplay concert, "which may impact demand and fares." </p> <p>The airline said the day chosen for the latest report was October 31, when Coldplay had their show in Melbourne. </p> <p>“As such, demand was significantly higher on flights into Melbourne, which means lower fares were snapped up early and the fares left available to purchase three weeks out were higher than usual. The average fare increase on these routes between July and October was significantly lower,” Qantas said. </p> <p>The claimed that their airfares from July to September had increased in line with inflation from the same period in 2023. </p> <p>While domestic airfares are going up, international flights are coming down, with data from Flight Centre showing the cost of an international economy airfare falling by 5 to 10 per cent from the July to September period last year to the same time this year. </p> <p><em>Image: Claudio Veneroni/IPA/ Shutterstock Editorial</em></p>

Domestic Travel

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Predictably, domestic airfares surged after the collapse of Rex. There aren’t many good solutions

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/doug-drury-1277871">Doug Drury</a>, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a></em></p> <p>Australia’s airline industry is famously duopolistic. Just two companies – Qantas and Virgin Australia – service 98% of the domestic passenger market. That’s not for a lack of other companies having <a href="https://www.smh.com.au/traveller/travel-news/grounded-five-of-australias-biggest-airline-failures-20221216-h28pzn.html">tried to secure a foothold</a>, over many decades.</p> <p>In 2024 alone, we’ve seen the high-profile collapse of both <a href="https://theconversation.com/what-just-happened-to-bonza-why-new-budget-airlines-always-struggle-in-australia-228995">Bonza</a> and <a href="https://theconversation.com/rex-airlines-future-up-in-the-air-amid-questions-about-viability-of-small-airlines-in-australia-235761">Rex</a>, airlines that once ignited hopes for much greater competition in the sector. Now, we’re beginning to see the predictable effects of their exit.</p> <p>According to a <a href="https://www.accc.gov.au/media-release/domestic-airfares-increase-amid-reduced-airline-competition">quarterly report</a> released on Tuesday by the Australian Competition and Consumer Commission (ACCC), domestic airfares on major city routes increased by 13.3% to September after Rex Airlines halted its capital city services at the end of July.</p> <p>There’s little reason to be optimistic about things changing anytime soon. Australia’s lack of competition means airfares are only likely to remain inflated due to higher demand and lower supply.</p> <h2>How are airfares actually set?</h2> <p>To predict what the market will bear in a given year, airlines use a process called <a href="https://www.sciencedirect.com/science/article/abs/pii/S0969699714000556">revenue management</a>.</p> <p>This involves sophisticated mathematical modelling, incorporating a range of factors – seasonal variations for school breaks, holidays, and major sporting events – to determine both what the airlines can charge per passenger and what the likely impact will be on their bottom line.</p> <p>There are three main expenses that airlines expect every year which fluctuate regularly:</p> <ul> <li>fuel prices</li> <li>aircraft maintenance</li> <li>salaries.</li> </ul> <p>But the Australian market has some unique characteristics. Our options for travelling the vast distances between major cities are very limited – and, if we’re not flying, very time-consuming too.</p> <p>Many of us choose to fly as it provides us more time at our destination for leisure or work, without a massive road trip or train ride. Our airline duopoly is very aware of this, and know we’re willing to pay a premium for convenience.</p> <p>The ACCC found that the price of “best discount economy” tickets on routes Rex had recently departed had <a href="https://www.accc.gov.au/media-release/domestic-airfares-increase-amid-reduced-airline-competition">increased significantly</a> – up 95% between Adelaide and Melbourne, and 54% between Canberra and Melbourne.</p> <p>The report also noted that fuel prices declined by more than 40% in the 12 months to September, which the airlines have not adjusted for in their pricing model.</p> <h2>The best solution’s a long shot</h2> <p>For Australian passengers to pay lower domestic airfares, competition from another airline is the only viable solution. That might seem like a far-fetched proposition for the foreseeable future.</p> <p>Any airline attempting to start up in Australia would need significant financial backing to weather market fluctuations, and a singular focus on flying the airline.</p> <p>There might be some hope on the horizon with a possible new entrant, Koala Airlines, in the press recently, stating its intentions to enter this market and be successful.</p> <p>Many customers may be hoping Koala can excel where Bonza and Rex were unable to. However, its entry remains quite some way off. Koala is still working on attaining an <a href="https://www.casa.gov.au/licences-and-certificates/air-operators">air operators certificate</a> (AOC) from CASA and a fleet of new aircraft.</p> <p>Koala has given few details about its business strategy, except for a promised <a href="https://www.abc.net.au/news/2024-09-29/koala-airlines-to-enter-qantas-virgin-duopoly-four-corners/104405640">cash refund guarantee</a> for passengers, and plans to implement <a href="https://koalaair.com.au/koala-tech/">artificial intelligence</a> to remain viable in the market.</p> <h2>What else can be done?</h2> <p>Can the government do anything to protect new entrants, to support them through the initial startup phase? Part-ownership of any new airline by the government is probably off the cards.</p> <p>Salvaging the competition we have left may be a better strategy. Also on Tuesday, the government announced an <a href="https://www.afr.com/companies/transport/labor-stumps-up-80m-to-keep-failing-airline-rex-afloat-20241112-p5kpu3">$80 million support package</a> to keep Rex’s regional services operational.</p> <p>Much of Rex’s fleet of SAAB 340 aircraft is in need of repair, so this will help somewhat.</p> <p>But such a big spending package is reminiscent of the <a href="https://theconversation.com/government-funding-to-qantas-and-virgin-to-ensure-air-services-on-key-routes-136554">pandemic-era strategies</a> the government will not want to revisit on a grand scale.</p> <h2>Better compliance</h2> <p>Other strategies could focus on ensuring that everyone plays fairly and doesn’t abuse the system to keep market share. The ACCC’s latest report is part of ongoing quarterly reporting, after the Treasurer redirected the ACCC to monitor domestic airfares for another three years in November last year.</p> <p>But other regulatory oversight may have been lacking. <a href="https://www.aap.com.au/news/competition-at-sydney-airport-less-than-we-like/">Speaking</a> before a senate inquiry on Tuesday, Sydney Airport’s Scott Charlton said that until recently, a compliance committee set up to monitor Sydney Airport’s slot system hadn’t met for five years.</p> <p>The government will need to tread carefully. If it wants to provide incentives for new entrants, it will need to do so in a manner that does not appear to be a re-regulation strategy, creating hardships for Qantas and Virgin Australia.</p> <p>Ultimately, appearing to re-regulate the Australian aviation sector is not in line with the government’s long term strategy of keeping the airline market stable through less intervention. <!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/243463/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><a href="https://theconversation.com/profiles/doug-drury-1277871"><em>Doug Drury</em></a><em>, Professor/Head of Aviation, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a></em></p> <p><em>Image credits: Shutterstock</em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/predictably-domestic-airfares-surged-after-the-collapse-of-rex-there-arent-many-good-solutions-243463">original article</a>.</em></p> </div>

Domestic Travel

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Flying to a footy final? Watch your wallet. Here’s why airfares soar

<div class="theconversation-article-body"> <p><em><a href="https://theconversation.com/profiles/doug-drury-1277871">Doug Drury</a>, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a></em></p> <p>Planning a flight to an AFL final is like trying to decide when and how to hop on an amusement park ride that hasn’t stopped.</p> <p>You don’t know where you need to be until the very last minute, and by then, it seems everyone else wants to be there too.</p> <p>This annual dilemma is now in sharp focus, with preliminary finals coming up this weekend. Sydney will face Port Adelaide at the Sydney Cricket Ground on Friday night, then Geelong will take on Brisbane in Melbourne on Saturday.</p> <p>Getting to these locations on the right dates can be no mean feat, and some fans have already been stung by surging prices. For those who tried to book over the weekend, prices to fly from Adelaide to Sydney in time for Friday’s game <a href="https://www.adelaidenow.com.au/news/south-australia/port-adelaide-fans-will-have-to-pay-a-hefty-price-for-airfare-tickets-to-sydney-for-prelim-final-at-scg/news-story/e549e292c50eb9798f6735d2270aafc3">reportedly ranged</a> from $597 to an eye-watering $1,723.</p> <p>Australia’s airline duopoly is already under intense scrutiny. According to government <a href="https://australianaviation.com.au/2024/09/domestic-airfares-rise-after-rexs-demise/">data</a> released this week, domestic airfares have risen by more than 10% since Rex shut down its capital city services.</p> <p>So how exactly do airlines price their fares today, and then again once the teams are decided? Why are they allowed to charge so much?</p> <h2>How are airfares priced?</h2> <p>Airfares are set through a process called revenue management. Airlines use <a href="https://www.sciencedirect.com/science/article/pii/S0969699714000556">mathematical modelling</a> to help determine what we as consumers are willing to pay.</p> <p>Airlines plan out their entire year based on what services they predict will be needed at certain times – such as travel for school breaks, winter skiing, or summers in Hawaii.</p> <p>In economics, this is known as seasonal supply and demand. Airlines have the supply, planes, and we as consumers provide the demand.</p> <p>The cost of flights to cities hosting footy finals might seem outrageous. But these games are one-off events that happen at the same time each year.</p> <p>Using historical data, airlines have determined that enough people are willing to pay these fares to justify charging them.</p> <h2>Two types of traveller</h2> <p>Airlines base their <a href="https://doi.org/10.1016/j.jksuci.2019.02.001">pricing strategies</a> on the assumption that we as travellers fall into two groups: elastic and inelastic. Here, elasticity simply describes how sensitive demand is to a change in price.</p> <p>Vacationers with a flexible calendar are an example of elastic travellers, who are able to change their flight dates to get the lowest airfare.</p> <p>Inelastic travellers, on the other hand, include business travellers who need to be somewhere specific on a particular date, and aren’t paying fares out of their own pocket.</p> <p>Airlines factor in both of these groups to determine <a href="https://digitalcommons.odu.edu/hms_fac_pubs/27">demand-based pricing</a>.</p> <p>Footy finals create huge amounts of inelastic demand, allowing airlines to push up their prices.</p> <h2>Does the price actually reflect the value?</h2> <p><a href="https://digitalcommons.odu.edu/hms_fac_pubs/27">Transactional utility</a> is a theory based upon the assumption that the price we pay for a product or service should reflect the value we receive. In this case – how much fans are willing to pay to be there to watch the game live.</p> <p>But individually, this depends on who you barrack for, as well as whether you have the disposable income to pay a premium for the experience. Last year, some airfares to the grand final soared <a href="https://www.couriermail.com.au/sport/travel-tsunami-2300-grand-final-flights-for-diehard-brisbane-footy-fans/news-story/270a34ad89d49cc68f1e7202b0d22e59">above the $2,000 mark</a>.</p> <p>So how are the airlines able to set these prices? Are they not regulated by the government? It all comes back to what we as consumers are collectively willing to pay for a diminished supply during high demand. The government does not regulate airfares on that level.</p> <p>Airlines will not want to sell discounted seats if they know enough of us are willing to pay. They might run more flights, but that doesn’t necessarily mean airfares will come down.</p> <p>Our decision to buy a seat is based on the perception of its fairness. Getting into the final is costly enough – does the price charged to fly there also <a href="https://digitalcommons.odu.edu/hms_fac_pubs/27">seem fair</a>?</p> <p>Airlines know the psychology of fairness is what will fill the seat. So they will continue to test our perception of fairness on last minute purchases.</p> <h2>Less competition makes it worse</h2> <p>These types of pricing strategies are not unique to Australia. Airlines all around the globe understand the passion associated with championship sporting events and position themselves to take advantage of such moments.</p> <p>But we also know that here, airlines are pricing what they can in part due to very low competition, only worsened by the recent demise of Bonza and Rex.</p> <p>We can <a href="https://www.accc.gov.au/by-industry/travel-and-airports/domestic-airline-monitoring">voice our displeasure</a> about this situation with the Australian Competition and Consumer Commission, but in the short term, many of us simply continue to pay the airfares.</p> <p>This is because the other methods of travel either don’t exist, such as high speed rail, or aren’t reasonable, such as driving for multiple days.</p> <p>Remember, airlines see this as an opportunity to increase their bottom line as part of their revenue management system.</p> <p>So what should you do if your team makes the grand final? Sell your car or house? Take out a second mortgage?</p> <p>What if you book now while it’s still relatively cheap and your team doesn’t make the final? Well, there is plenty to do in Melbourne in September!</p> <p>I, for one, will be watching from the comfort of my lounge room.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/239104/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><a href="https://theconversation.com/profiles/doug-drury-1277871"><em>Doug Drury</em></a><em>, Professor/Head of Aviation, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/flying-to-a-footy-final-watch-your-wallet-heres-why-airfares-soar-239104">original article</a>.</em></p> </div>

Domestic Travel

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Pay-by-weight airfares are an ethical minefield. We asked travellers what they actually think

<div class="theconversation-article-body"> <p><em><a href="https://theconversation.com/profiles/denis-tolkach-11345">Denis Tolkach</a>, <a href="https://theconversation.com/institutions/james-cook-university-1167">James Cook University</a> and <a href="https://theconversation.com/profiles/stephen-pratt-335188">Stephen Pratt</a>, <a href="https://theconversation.com/institutions/university-of-central-florida-1925">University of Central Florida</a></em></p> <p>Imagine checking in for a flight with your two teenage children. At the counter, you are told that your youngest teenager’s suitcase is two kilograms over the limit. You get slapped with a $75 penalty for their excess luggage.</p> <p>This penalty feels arbitrary and unfair. The youngest weighs about 45 kg, and their luggage weighs 25 kg, making their total payload on the flight 70 kg.</p> <p>Their older sibling, on the other hand, weighs 65 kg, and has brought 23 kg of luggage to check in. Their total weight is higher – 88 kg – yet they receive no penalty.</p> <p>Obviously, things aren’t that simple. Charging passengers based on their weight is highly controversial for many reasons. But that hasn’t stopped some airlines <a href="https://theweek.com/articles/466035/should-airlines-charge-passengers-by-weight">experimenting</a> with such policies.</p> <p>Imagine checking in for your flight only to have the staff tell you to <a href="https://edition.cnn.com/travel/article/plus-size-travelers-slam-airline-seat-policies/index.html">purchase an extra seat</a> as you are a plus-size passenger. You feel discriminated against because you are using the same service as other passengers and your weight is beyond your control.</p> <p>But despite the lived experience of many and hot debate in the media, there has not been a formal study into what passengers themselves think about this matter.</p> <p>Our recently published <a href="https://doi.org/10.1002/jtr.2691">research</a> examined air passengers’ views on alternative airfare policies to understand whether the public finds them acceptable and what ethical considerations determine their views.</p> <p>Though we found a range of ethical contradictions, most travellers were guided by self-interest.</p> <h2>A controversial but important topic</h2> <p>The issue of whether airlines should weigh passengers is an ethical minefield with no easy answers.</p> <p>Despite its sensitivity, the aviation industry can’t ignore passenger weight. Airlines intermittently undertake <a href="https://www.forbes.com/sites/marisagarcia/2024/02/11/despite-backlash-heres-why-airlines-need-to-weigh-passengers/?sh=5f07623e1bfa">passenger weight surveys</a> as they need to accurately calculate payload to ensure flight safety and estimate fuel consumption.</p> <p>The evidence shows passengers are <a href="https://www.forbes.com/sites/marisagarcia/2024/02/11/despite-backlash-heres-why-airlines-need-to-weigh-passengers/?sh=5f07623e1bfa">getting heavier</a>. Airlines including the now-defunct <a href="https://theweek.com/articles/466035/should-airlines-charge-passengers-by-weight">Samoa Air</a> and <a href="https://www.theguardian.com/us-news/2016/oct/23/hawaiian-airlines-american-samoa-weight-passengers">Hawaiian Airlines</a> have taken things one step further and experimented with weighing passengers regularly.</p> <p>Samoa Air, for example, became the first airline to introduce a “pay-as-you-weigh” policy, where the cost of your ticket was directly proportional to the combined weight of you and your luggage.</p> <p>In contrast, Canada has now long had a “<a href="https://otc-cta.gc.ca/eng/publication/additional-seating-and-one-person-one-fare-requirement-domestic-travel-a-guide">one person, one fare</a>” policy. It is prohibited and deemed discriminatory to force passengers living with a disability to purchase a second seat for themselves if they require one, including those with functional disability due to obesity.</p> <p>To complicate matters further, the issue of passenger and luggage weight is not only ethical and financial, but also environmental. More weight on an aircraft leads to more jet fuel being burned and more carbon emissions.</p> <p>About <a href="https://www.nature.com/articles/s41467-021-24091-y">5%</a> of human-driven climate change can be attributed to aviation, and the industry faces enormous pressure to reduce fuel consumption while it waits for low carbon substitutes to become available.</p> <h2>What do passengers actually think?</h2> <p>To get a better sense of how the public actually feels about this issue, we surveyed 1,012 US travellers of different weights, presenting them with three alternatives:</p> <ul> <li><strong>standard policy</strong> – currently the most widely used policy with passengers paying a standard price, irrespective of their weight</li> <li><strong>threshold policy</strong> – passengers are penalised if they are over a threshold weight</li> <li><strong>unit of body weight policy</strong> – passengers pay a personalised price based on their own body weight, per each pound.</li> </ul> <p>The standard policy was the most acceptable for participants of differing weight, although the heavier the passenger, the more they preferred the standard policy. This can be partially explained by status quo bias. Generally, people are likely to choose a familiar answer.</p> <p>The threshold policy was the least acceptable. This policy was seen to violate established social norms and be generally less fair.</p> <p>The unit of body weight policy was preferred to the threshold policy, although participants raised concerns about whether it would be accepted by society.</p> <p>Perhaps unsurprisingly, we found that self-interest played a clear role in determining whether respondents considered a policy acceptable.</p> <p>Younger, male, financially well-off travellers with lower personal weight generally found the alternative policies more acceptable.</p> <h2>An ethical conflict</h2> <p>Alternative airfare policies that are based on passenger weight bring environmental and ethical concerns into conflict. Obviously, the effect isn’t from any one traveller, in particular, but averages over the entire industry.</p> <p>Interestingly, respondents that were more concerned about the environment – “ecocentric” – preferred air fare policies that would reduce the carbon emissions. This made them more open to the controversial alternatives.</p> <p>While the threshold policy was clearly rejected by many respondents as discriminatory, environmental concern played a role in the level of acceptance of the unit of body weight policy.</p> <p>It’s important to apply a critical lens here. These ecocentric travellers were also generally younger and had lower personal weights, so many would benefit from the alternative policies financially.</p> <p>For policymakers overall, our study suggests when it comes to controversial ticketing policies, the public is more likely to be swayed by self-interest than anything else.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/237856/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/denis-tolkach-11345">Denis Tolkach</a>, Senior Lecturer, <a href="https://theconversation.com/institutions/james-cook-university-1167">James Cook University</a> and <a href="https://theconversation.com/profiles/stephen-pratt-335188">Stephen Pratt</a>, Professor, <a href="https://theconversation.com/institutions/university-of-central-florida-1925">University of Central Florida</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/pay-by-weight-airfares-are-an-ethical-minefield-we-asked-travellers-what-they-actually-think-237856">original article</a>.</em></p> </div>

Travel Trouble

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Huge drop in international economy airfares revealed

<p>Airfares to some of the most popular tourist destinations have dropped over the past year according to new data released by Flight Centre. </p> <p>The Australian agency revealed that average price of an international economy airfare sold in Australia has dropped by 12.8 per cent.</p> <p>The top three destinations with the most significant drop in prices include Indonesia at 21.01 per cent, New Zealand with 13.03 per cent and the US at 12.45 per cent. </p> <p>The UK has seen a decrease of 8.05 per cent and popular European destinations like France, Germany and Spain down 7.91 per cent, 6.9 per cent and 6.03 per cent, respectively.</p> <p>The cost of flights to Thailand has also gone down by 3.84 per cent. </p> <p>The figures are based on a comparison of the cost of flights between January and March last year and the same period this year. </p> <p>“In fantastic news for travellers the latest data shows the average cost of an international airfare is down almost 13 per cent when compared to this time last year,” Flight Centre global managing director Andrew Stark told news.com.au.</p> <p>“What that means in real figures is that an economy return airfare between Sydney and Bali would’ve cost on average $1010 this time last year, now it will now set you back under $800.”</p> <p>He attributed these changes to the increased competition and capacity. </p> <p>“It’s vital that there is active competition between the airlines and the more we see of it, the more likely we are to see cheaper airfares, more destination options and a better experience for consumers.”</p> <p>Qantas has also recently announced that they will be increasing the number of flights to Singapore and India, with flights from Sydney to Singapore set to increase from 14 to 17 return flights a week, and Sydney to Bengaluru from five a week to seven. </p> <p><em>Image: Shutterstock</em></p>

Money & Banking

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The easy way Aussie airfares could be halved in the future

<p>A federal taskforce has found that there is a way for Aussies to pay half the amount on airfares, and that is by simply introducing some competition. </p> <p>Early results from their research found that the "mere threat" of rivalry can be enough to lower airfares. </p> <p>Just last year the Australian Competition and Consumer Commission (ACCC) <a href="https://www.smartcompany.com.au/industries/tourism/accc-blames-qantas-and-virgin-australia-duopoly-for-high-flight-prices-and-poor-service/" target="_blank" rel="noopener">found</a> that the duopoly between Qantas and Virgin Australia was a key contributor to the "high prices and underwhelming customer service." </p> <p>The early findings of the Competition Taskforce, which was set up last year, found that having flights serviced by three carriers instead of one can significantly reduce the cost. </p> <p>When serviced by a sole carrier, airfares average 39.6 cents per kilometre - this drops to 28.2 cents a kilometre with a second rival, and to 19.2 cents a kilometre with a third. </p> <p>Assistant Minister for Competition Andrew Leigh said that competition  exerted "significant" downward pressure on airfares.</p> <p>He added that a lack of competition in the aviation industry was problematic for a country that relies heavily on flying to connect cities to reach other parts of the world. </p> <p>"For a resident of Darwin, it is often cheaper to fly from Darwin to Singapore than it is to fly from Darwin to Sydney, even although the international flight is longer than the domestic one,"  he said. </p> <p>Leigh added that more than a dozen airlines operated in Australia before World War Two, but from the 1950s to the 1980s, a duopoly prevailed which kept prices high. </p> <p>"Only with the deregulation of aviation in the late 1980s did flying become affordable for many middle-class families and small businesspeople," he said. </p> <p>"Australia's aviation history shows the value of competition."</p> <p>Just last year the aviation sector came under fire after the government's decided to block Qatar Airway's from running additional flights in Australia, with accusations that the move was made to protect Qantas from competition.</p> <p>The federal government has since issued a review of the  sector - including its competitiveness - and a white paper is expected to be released mid-year. </p> <p><em>Image: Getty</em></p> <p> </p>

Money & Banking

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“Are you kidding me?”: Woman shocked over uncompassionate $48K airfare

<p>Linda Schulman had just received the news every parent fears. Her son Scott Beigel was dead, shot at the school he works for as a teacher. He had died unlocking the classroom door to let students in to hide from the gunman.</p> <p>The New York woman did everything she could to get to her son’s side at Marjory Stoneman Douglas High School in Parkland, Florida.</p> <p>All the flights to the area were sold out but she finally found one with a private jet charter company Talon Air. Within 90 minutes, she, along with her husband and brother, were flying to Florida.</p> <p>Days later, the grieving mother was handed a bill for the flight costing $US36,000 ($A48,000).</p> <p><iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2FLtschulman%2Fposts%2F10213021372943046&amp;width=500" width="500" height="735" style="border: none; overflow: hidden;" scrolling="no" frameborder="0" allowtransparency="true" allow="encrypted-media"></iframe></p> <p>She begged the company to show some compassion and slash the exorbitant bill but they refused. So Ms Schulman took to Facebook.</p> <p>“Today marks day 74 since my son Scott J. Beigel was shot and killed senselessly at the Parkland massacre,” she wrote in the April 30 post. “I have waited all this time in hopes that the owner of Talon Air, Inc. would show some compassion, but as you read on you will see that unfortunately he has not.”</p> <p>Ms Schulman says she had no problem with paying for the service but she took issue with the fact she was charged for the return flight which she hadn’t even travelled on.</p> <p>“Even though I had never chartered a plane before, I knew it was going to be super expensive,” she wrote. “It didn’t matter what the cost — I had to get to my son!</p> <p>“Talon Air, Inc. not only charged us $US18,229.57 one way, they charged us another $US18,229.56 to bring the plane back to Farmingdale because they did not have anyone wanting to charter the plane back from Fort Lauderdale. Really?”</p> <p>She added: “I have no problem accepting that I have to pay for one way, even the fuel charge for the return flight ... but $US18,229.56 for the return of the plane? Where is the compassion from Talon Air, Inc.?”</p> <p>She pointed to the fact that victims’ families were offered free flights on JetBlue at the time.</p> <p>Finally, the company’s CEO Adam Katz responded and set things right, offering to refund the cost of the one-way flight and donate the remaining airfare to charity.</p> <p>“You have endured the greatest tragedy that no parent should have to confront,” he wrote in a letter.</p> <p>“No parent should have to go through what you and so many other parents have endured. My heart goes out to each and every one who has suffered so much pain, anguish and loss by virtue of this senseless act of violence.”</p> <p>He added: “I apologise for how poorly Talon initially handled this tragic matter.”</p>

Travel Trouble

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This simple trick can save you 10% on your flights

<p>We’re always happy to hear about new ways to save money here at Over60, so when we heard about this incredible travel tip, we couldn’t resist sharing it with you.</p> <p>You might have noticed in Jetstar’s ads, they claim they’ll beat any competitor’s airfare by 10 per cent. Sounds great, right? The only problem is, they don’t exactly make it easy for you. So let’s break it down.</p> <p>First, you need to find the flight you’re looking for on a competitor’s website, save the URL and take note of the time and price of the flight.</p> <p>Now, go to Jetstar and find the closest comparable flight. For international flights (with the exception of New Zealand), the flight has to be on the same date and must fly direct to the destination – no stopovers. For domestic (or New Zealand) flights, the flight needs to be within the same hour (either side) as the original flight.</p> <p>Then, <a href="http://www.jetstar.com/au/en/price-beat-guarantee" target="_blank"><strong><span style="text-decoration: underline;">click here</span></strong></a> to visit their Price Beat Guarantee page and then click “Apply Now”. You’ll be taken to a live online chat with a customer service representative who will make sure your flight is eligible for the 10 per cent discount, and there you have it.</p> <p>It could potentially save you a decent amount of money, but as with all good things, there are a few caveats – including the ever-annoying “checked baggage not included” clause. However, if you’re happy to abide by the <a href="http://www.jetstar.com/au/en/price-beat-guarantee#terms-and-conditions" target="_blank"><strong><span style="text-decoration: underline;">terms and conditions</span></strong></a>, you’ve gotten yourself an easy discount on your next flight. Enjoy!</p>

Travel Tips

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How to get the cheapest airfare every time

<p>Living so far away from the rest of the world, Aussie travellers pay a premium whenever we book flights. But everyone deserves a holiday now and then, so what can you do to keep airfares to a minimum? The <a href="http://www.smh.com.au/interactive/2017/costs-of-living/airfares.html" target="_blank"><em><strong><span style="text-decoration: underline;">Sydney Morning Herald</span></strong></em></a> has put together a handy interactive guide to help you do just that. Here’s a breakdown.</p> <p><strong>Timing</strong></p> <p>When it comes to domestic flights, your best bet is to avoid early mornings and late evenings (especially on Mondays and Fridays), as these are rush-hour routes popular with business travellers. Because airlines know these flights will always be busy, they can afford to charge extra. Likewise, Friday evenings and Sunday nights are popular with holidaymakers and thus cost more. So, it pays to be flexible – aim for the middle of the day in the middle of the week, if possible.</p> <p>For international flyers, avoid the start and end of school breaks (as well as public holiday periods) if you want the cheapest fares. As always, first in, best dressed – you’ll always save more by booking earlier.</p> <p><strong>Loyalty</strong></p> <p>Those points you painstakingly earnt might not be as powerful as you thought – status is what matters more. Unless you have status credits, it’s unlikely that you’ll nab a seat during busy times of the year. “You typically do not get them at peak times when airlines can charge a premium for their seats,” general manager of leisure travel at Flight Centre, Tom Walley, told <em>SMH</em>.</p> <p>If you’re loyal to one airline, however, you will be rewarded. Platinum (or similar) status will always be put before those who have simply earned points while out shopping.</p> <p><strong>Budget</strong></p> <p>Think you’re getting a better rate by going with a budget carrier? Think again. If you’re flying international, the basic ticket will certainly shave hundreds off competing airlines. But if you want to take luggage or eat during the flight, these added “extras” will take your fare to about the same level as non-budget airlines.</p> <p>What’s your number one money-saving travel tip? Let us know in the comments.</p>

Domestic Travel

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5 facts to help you get the cheapest airfare

<p>There are endless theories on how and when to book to secure the cheapest deal. But do they really add up?</p> <p><strong>1. There’s no ‘magic’ time to book</strong></p> <p>Many experts like to claim that there’s a specific day or time to book that will always guarantee the cheapest flights, like 11pm on a Tuesday or 6am on a Sunday. Or they will advise you to book a specific number of days before your flight. In reality, that’s rarely true. There are so many variables within the industry that it’s almost impossible to accurately predict an exact time to press that ‘purchase’ button.</p> <p><strong>2. Travel on unpopular days</strong></p> <p>This one does make sense and will definitely save you some money. As a general rule, travel midweek, in low season or out of school holidays to get the best fare. You also need to look at the specific circumstances of your destination. For example, if it’s a major business hub, early morning flights will be more expensive as corporate travellers want to arrive in time for a full day of meetings. Look at the flight pricing over the week and you should soon see a pattern for unpopular days or times.</p> <p><strong>3. Break up your booking</strong></p> <p>If you’re flying long haul, it can be cheaper to book your tickets as multiple separate flights rather than one long flight. For example, it can be cheaper to fly from Sydney to Hong Kong and then take a separate flight from Hong Kong to London. This is particularly true as more and more budget carriers begin flying from Asia. Just be aware that you will need to clear immigration, collect your baggage and check in again, so you’ll need to leave plenty of time in between flights.</p> <p><strong>4. Choose the right airport</strong></p> <p>Many major cities will have one primary airport and then one or more smaller, regional airports that are a short distance away. Think Melbourne’s Tullamarine close to the city and then Avalon further out. Fares to these smaller airports will almost always be cheaper and the difference can be significant. If you aren’t in a huge rush, try a flight into a smaller airport and a bus transfer to the main destination.</p> <p><strong>5. Sign up for alerts</strong></p> <p>Many airlines or booking sites (like Kayak) will let you sign up for alerts on changing prices. Enter your chosen route and time period (often up to a month) and when the price drops, you’ll receive an email with the new fares for your dates. It saves you from having to check the site every day and means you’ll never miss the latest deal.</p> <p>Do you agree with these tips? Do you have any trip plans on the horizon, and if so where are you planning to go?</p> <p>Share your thoughts in the comments.</p> <p><strong>Related links:</strong></p> <p><a href="/travel/travel-tips/2016/08/tips-to-help-you-survive-a-long-haul-flight/"><strong><em><span style="text-decoration: underline;">16 tips to help you survive a long-haul flight</span></em></strong></a></p> <p><a href="/travel/travel-tips/2016/08/secret-way-to-raise-the-armrest-on-your-aisle-seat/"><span style="text-decoration: underline;"><em><strong>There is a secret way to raise the armrest on your aisle seat</strong></em></span></a></p> <p><a href="/travel/travel-tips/2016/07/7-foods-to-definitely-avoid-before-catching-a-flight/"><strong><em><span style="text-decoration: underline;">7 foods to definitely avoid before catching a flight</span></em></strong></a></p>

Travel Tips

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Are round the world airfares worth it?

<p>Round the world airline (RTW) tickets can be useful and economical solutions to complicated or extensive travel, but it’s worthwhile doing your homework to ensure you get the best deal to suit your requirements.</p> <p>Each of the big three airline alliances (Star Alliance, Oneworld and Skyteam) offer various RTW or related ticket products. In addition, a few airlines have partnerships outside their own alliances (or in some cases with non-alliance airlines), which offer RTWs. And a number of specialty travel agencies have also put together RTW booking vehicles.</p> <p><strong>The basics –</strong> An RTW ticket requires you to travel eastbound or westbound around the world, crossing both the Atlantic and Pacific Oceans in the same direction. The alliances also sell more limited “circle” tickets in certain regions.</p> <p>RTWs offer multiple stopovers en route that are usually classified from a minimum of 24 hours up to several months and most RTWs are valid for up to a year. Generally you need to begin and end the trip in the same country, but not necessarily in the same city. Subject to the limitations of the tickets (and there are many rules) you generally can zigzag and backtrack within continents or regions, but not return to a particular region once you’ve left it.</p> <p>RTW and Circle tickets generally limit you to a maximum of 16 flights included in the ticket, which is primarily sold on tiers based on maximum kilometres that can be flown without moving up to the next price tier. Obviously the greater distance you fly, the higher the price.</p> <p><strong>Costs -</strong> An important consideration with RTW tickets is that the pricing is extremely variable, depending on where you begin (and therefore end) the trip as well as differences in classes and variations from one alliance to the next.</p> <p><strong>Changes and flexibility -</strong> RTW tickets must have all segments booked prior to issue; however all make provision for changes or alterations during the life of the ticket. Generally, date changes are free, provided the same airline is being used for the same city pair. Itinerary changes – adding or deleting stops, changing the route, etc. – require that the ticket be re-issued for a fee, and any taxes or fees that change because of the new route be added or subtracted.</p> <p><strong>Frequent flyers -</strong> RTW tickets earn frequent flyer miles/points according to the ground rules established by the frequent flyer scheme used.</p> <p><strong>Limitations -</strong> Some RTW trip segments can be undertaken more cheaply by using point-to-point tickets, which obviously offer greater flexibility than any other approach. However this needs to be considered within the overall context of the trip cost. Another issue is inflexibility and limited choice. You have to fly on airlines the ticket allows you to use, and fly where they fly. And because there are many city pairs where no non-stop flights exist, usually a high percentage of the 16 flights are spent in indirect routes between your preferred cities.</p> <p>For most travelers, however, RTW tickets can provide good to very good value, and a great way to explore the world.</p> <p> </p>

International Travel

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