Government to halve flight prices in $1.2bn tourism plan

[Ric]

Sydney to Broome? Any airline that has flown that route for 2 yrs+?

 

[dajop]

Just did some checks on expertflyer (based on just 2 days, Fri/Sat in May, but adjusted for 1 weekly and 2 weekly services pro rata), and of the economy seats flown on these routes

Jetstar - 51%
Virgin - 28%
Qantas - 20%
Air North - 0.9%
Rex - 0.5% (assuming its OOL routes excluded)

Comments have been made the scheme covers 42,000 fares each week (FWIW on the 2 days I looked at there were 32,000 seats total).

I do wonder why the subsidies are necessary on a) some routes, for example QF is running daily A330's from MEL and SYD to CNS. If things were really that bad, wouldn't they just be running 737's? and b) at all, it is reported that in March that Jetstar is running at 90% of its pre-COVID capacity and bringing aircraft temporarily back to Australia from Japan?

Surely the government could better target their assistance at the tourism operators genuinely suffering, rather than boosting Jetstar, who does seem to be performing OK.

Jetstar to shift six A320s from Japan to Australia

Low-cost carrier group Jetstar is to "temporarily" move six Airbus A320s from its Jetstar Japan unit to its Australian operation, as the latter's relatively strong domestic market provides an outlet for capacity.

www.flightglobal.com

 

[jakeseven7]

Let them eat cake?

Or at least the 1/3 of a piece of cake that serves as the VA 'snack'.

Or the flavouring sachet to the business class instant noodles

 

[Mattg]

Just did some checks on expertflyer (based on just 2 days, Fri/Sat in May, but adjusted for 1 weekly and 2 weekly services pro rata), and of the economy seats flown on these routes

Jetstar - 51%
Virgin - 28%
Qantas - 20%
Air North - 0.9%
Rex - 0.5% (assuming its OOL routes excluded)

Comments have been made the scheme covers 42,000 fares each week (FWIW on the 2 days I looked at there were 32,000 seats total).

I do wonder why the subsidies are necessary on a) some routes, for example QF is running daily A330's from MEL and SYD to CNS. If things were really that bad, wouldn't they just be running 737's? and b) at all, it is reported that in March that Jetstar is running at 90% of its pre-COVID capacity and bringing aircraft temporarily back to Australia from Japan?

Surely the government could better target their assistance at the tourism operators genuinely suffering, rather than boosting Jetstar, who does seem to be performing OK.

Jetstar to shift six A320s from Japan to Australia

Low-cost carrier group Jetstar is to "temporarily" move six Airbus A320s from its Jetstar Japan unit to its Australian operation, as the latter's relatively strong domestic market provides an outlet for capacity.

www.flightglobal.com

Quite honestly, I think a simple guarantee that state borders will remain open would stimulate demand more than some discounted flights. And that costs nothing.

People want to travel, but the risk of getting stuck (as many people did over New Year and/or at other times during the last year) has put lots of people off. That has nothing to do with the cost of airfares.

 

[ozflier]

I've read thru the Federal Governments website
(Tourism and aviation's flight path to recovery | Treasury Ministers)
to try and get more information.
Its early days but I would love more details.
For example , do the half price fares include business class - no mention in the press release
or
those where an intermediate transit is required.
What does "The discounts will be off the average fare" mean (and this may be up for discussion) - ? this means that a single calculated "average half price" will apply to all flights between specific origin / destination pairs and that figure will be deducted from whatever fare is booked - business , discount economy , non stop etc .
I'm sure that there will be discussions coming up with airlines so maybe more is coming soon.
Hopefully, if this gets traction , we will see flights added to some of the affected sectors and improve our options.

 

[milehighclub]

, for example QF is running daily A330's from MEL and SYD to CNS.

QF is operating flights to HKG via CNS. It did so yesterday as QF83 CNS to HKG.

 

[AIRwin]

QF is operating flights to HKG via CNS. It did so yesterday as QF83 CNS to HKG.

Cargo?

 

[milehighclub]

Cargo?

Correct cargo only. But the flights to CNS would be part of position and rotating the aircraft. It's possible there is another flight as well to somewhere given that there is an A330 from both SYD and MEL but I can only see one flight ahead and behind for each aircraft.

 

[mviy]

It should all become clear come 1st April when the discounts become available, if not earlier.

Given that the focus is on tourism travel which for most would be in economy I'm not sure whether business would be included. Travel for work is less likely to be discretionary.

Most (but not all) people I know don't travel domestic business for leisure. Those that I know that do travel domestic business for leisure don't need the incentive of a discount to travel.

 

[exceladdict]

Joyce on the radio this morning touting they'll seek to remove subsidies from "high demand" flights and hopefully introduce new routes.
Here's hoping there are some more to/from WA outside BME and ASP(-PER) (when I looked last).
Wonder if there'll be any good opportunities for status runs.

 

[mviy]

Indeed if business is included and indirect routings work, I'll be interested to see what MEL-SYD-OOL is priced at.

MEL-BNE-CNS definitely won't work as BNE-CNS isn't one of the routes covered by the stimulus.

A status run could be a good way to reach the maximum status credits that can be rolled over to the next membership year making it easier to retain/level up status next membership year.

 

[drron]

It should all become clear come 1st April when the discounts become available, if not earlier.

Given that the focus is on tourism travel which for most would be in economy I'm not sure whether business would be included. Travel for work is less likely to be discretionary.

Most (but not all) people I know don't travel domestic business for leisure. Those that I know that do travel domestic business for leisure don't need the incentive of a discount to travel.

We often fly domestic J on leisure flights.
But they are on points or part of an International Itinerary.EG-end an International journey in PER and start the next from PER.

 

[jakeseven7]

Quite honestly, I think a simple guarantee that state borders will remain open would stimulate demand more than some discounted flights. And that costs nothing.

People want to travel, but the risk of getting stuck (as many people did over New Year and/or at other times during the last year) has put lots of people off. That has nothing to do with the cost of airfares.

100% agree and you can see that from the booking patterns and many many QF flights being loaded on at the last minute to cater for last minute demand that people are waiting to the last minute, ascertaining their own 'risk' levels then bolting! Must be a nightmare for the airlines to manage.

Only QLD has come out and said no more border closures in a few weeks time. Crickets from everyone else.

 

[jb747]

Sadly, I don't think I'd even believe most of the Premiers if they came out and said there would be no closures.

 

[kamchatsky]

100% agree and you can see that from the booking patterns and many many QF flights being loaded on at the last minute to cater for last minute demand that people are waiting to the last minute, ascertaining their own 'risk' levels then bolting! Must be a nightmare for the airlines to manage.

Only QLD has come out and said no more border closures in a few weeks time. Crickets from everyone else.

Maybe because regional QLD is the most impacted region, and Premier is desperate to reviving their economy now that the JobKeeper is ending? I can guarantee you that QLD would not make such statement if JobKeeper stays beyond March.

 

[drron]

100% agree and you can see that from the booking patterns and many many QF flights being loaded on at the last minute to cater for last minute demand that people are waiting to the last minute, ascertaining their own 'risk' levels then bolting! Must be a nightmare for the airlines to manage.

Only QLD has come out and said no more border closures in a few weeks time. Crickets from everyone else.

Not what the QLD Treasurer said yesterday in Parliament.Basically we close borders on health advice.If we get that advice we will close the border.

 

[Mattg]

Not what the QLD Treasurer said yesterday in Parliament.Basically we close borders on health advice.If we get that advice we will close the border.

Well if there's still a risk of border closures, I will avoid holidaying in Tasmania (as I have done with WA recently). Simple.

I'm not going to change my mind on that because flights happen to be 50% off whatever the normal median airfare is.

 

[jakeseven7]

Not what the QLD Treasurer said yesterday in Parliament.Basically we close borders on health advice.If we get that advice we will close the border.

Thankfully the QLD CHO is the one saying no more border closures in a few weeks time.

The QLD Treasurer has no say.

In QLD the CHO legally has the power and is on the record as saying no more border closures thankfully.

 

[hydrabyss]

Indeed if business is included and indirect routings work, I'll be interested to see what MEL-SYD-OOL is priced at.

MEL-BNE-CNS definitely won't work as BNE-CNS isn't one of the routes covered by the stimulus.

A status run could be a good way to reach the maximum status credits that can be rolled over to the next membership year making it easier to retain/level up status next membership year.

I unfortunately can't see the Government subsidising these fares and my guess will be just economy and will have a price cap. So once a certain amount have sold and the fare price goes up there will be no more left.

 

[dajop]

I unfortunately can't see the Government subsidising these fares and my guess will be just economy

Rightly so, too.