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Old Jul 31, 2009 | 7:38 am
  #8  
edy4eva
15 Years on Site
 
Join Date: Nov 2007
Location: KYE
Posts: 4,153
Originally Posted by BackFromAwayAndBackAwayAgain
Well, we'll see what happens come September. I sincerely hope it's a false alarm and a heap of scaremongering, although I remain very pessimistic as far as the travel market is concerned... Some of the airlines will suffer really hard because of this: if not operationally, then at least commercially.
Let's wait and see


Originally Posted by BackFromAwayAndBackAwayAgain
I think the problem here is the Australian government: it would be really easy for them to fix this, but instead they prefer to be far too protectionist of QF and DJ... Maybe you should write them a letter and tell them to open up the market to more competition, which can only be good for the overall population and for Australian businesses.
Agree. I have actually spoken to someone in the Senate a while ago about this issue. The whole problem is centred around protecting QF's interests. QF sees its AU originating pax as cash cows. The Gov. sees QF as as a tax cash cow (for revenue), and as a major employer in the industry for the populous (for image).
One can argue though that the protectionism here is no where near that of Canada and Air Canada.
Originally Posted by BackFromAwayAndBackAwayAgain
I am of a different view than yourself: I think you should praise yourselves lucky to have an airline like EK serving your country the way they do... at least there is increased competition on some of the routes.
Well, increased competition does not always mean better prices for the consumers. It sometimes does the opposite especially when all major market players engage in price fixing and I think this is evident if we look back at the premium airfares ex-Aus.
I remember getting a return F trip on GF for 4200AUD (2001), followed by EK in 2002 (5400AUD), then 5800AUD in 2004.
Today the same trip would cost 13k with EK, that's more than double although they are competing with EY, QR (on the way), and MH and many many others.
You might argue with fuel prices, but let's face it they have also increased capacity by several folds (and hence cost per unit had fallen dramatically) whereas fuel has what, quadrupled at the highest end?
Besides, we all know that airlines price their fares according to market first, and cost last. Because if they looked at cost and were considerate, we would be flying first class for less than $2k.

Anyways, I do agree the government is part to blame. You know I might just write a letter about that to a local MP.
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