Originally Posted by
lokijuh
Some destinations are hurting because they are closed to their biggest markets, the 10 million people that live in Melbourne and Sydney, as well as their higher margin markets, international travellers. I'm assuming once people can actually travel and borders open up, then the airline will start increasing capacity. Already .this week, between QF, VA, and JQ we've had announcements about reopening and/or increasing frequency on various NSW/VIC routes including MEL-SYD/NTL/CFS/BNK and SYD-MQL/BXG once borders open in 2 weeks time. But you can forget Queensland - I imagine, maybe, just maybe there's a short term market for NTL-HTI/CNS?? type flights, but is that going to make a material difference to ground operators in those destinations, and charter flights aren't exactly without risk. It might be easier to ride out the border restrictions.
but there is also the aspect of credits not just for airfares but accommodation etc.
Airlines have to be careful they don't just fill majority of seats with those having credits. They need cash. Same for hotels.
+ some leisure routes get very few high yield business type passengers, so airlines might be reluctant to go back to old frequent schedules. This is exactly where charters can work & risk with charters can be reduced by getting hotels, car rental, tours onside & all taking a reduced cut if flights aren't full. Prices are .......ised, as no one knows individual prices, as not disclosed.