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Why such a difference in flight cost ?

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Old Jun 3, 2012, 7:59 pm
  #1  
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Why such a difference in flight cost ?

Hi,
this is my first post here so don't even know if I'm in the correct section.

My issue is with cost of flights from Australia. I am currently in Sydney and would like to fly home to the UK next February.

Why is the cost of flying SYD-LHR so much more expensive than LHR-SYD ?
Singapore Airlines LHR - SYD 11th Feb 2013 = £631 ( $AUD 1004)
whereas SYD-LHR same date is $AUD1442 (£905) !
That's a huge difference in price.

Can anyone explain to me why this should be the case ?

It's the same issue with return flight. I cannot see why there should be a difference in price as a return is basically one flight in either direction - so therefore the price should be the same :

SYD-LHR-SYD Dep 11th Feb Ret 25th Feb = $AUD 2498 (£1568)

LHR-SYD-LHR Dep 11th Feb Ret 25th Feb = $AUD 1690 (£1061)

Thats £507 ($AUD 808) more for the same thing !!!! Surely there cannot be a fair reason for this ?

Thanks

Stereo

Last edited by stereotongue; Jun 3, 2012 at 8:08 pm
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Old Jun 4, 2012, 1:26 am
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Originally Posted by stereotongue

Can anyone explain to me why this should be the case ?
Economics 101.
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Old Jun 4, 2012, 2:16 am
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so yet again - no answer of value - thanks for the help Savage - very inciteful of you.

Has anyone ever got an answer from an airline on this subject ....
and not the nonsense answer of 'they are comaprable to market rates for that region' bulls**t?
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Old Jun 4, 2012, 3:44 am
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Originally Posted by stereotongue
Has anyone ever got an answer from an airline on this subject ....
and not the nonsense answer of 'they are comaprable to market rates for that region' bulls**t?
The 'nonsense' answer of charging different rates for different reasons isn't nonsense. If people in Australia are willing (not wanting, but willing) to pay £1568 for SYD-LHR-SYD, then why shouldn't they charge that much? Prices from London don't matter since it's a different product they are selling.

Yes, costs are similar (supply costs), but if demand for different flights varies, the optimal price varies. Airlines aren't necessarily trying to sell the most tickets, they are trying to make the most money, hence, different prices for different flights.

Also, some taxes and fees only apply on departure from certain countries or depend on transit points or other variables, so those costs really can vary depending on which direction you travel. They probably aren't the only story here, but they matter.
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Old Jun 4, 2012, 5:14 am
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Originally Posted by stereotongue
so yet again - no answer of value - thanks for the help Savage - very inciteful of you.

Has anyone ever got an answer from an airline on this subject ....
and not the nonsense answer of 'they are comaprable to market rates for that region' bulls**t?
Are you serious? Apart from the differing taxes that apply, economics 101 is the answer. What world do you live in?
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Old Jun 4, 2012, 9:35 pm
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So basically you see no problem with charging whatever price they want ?
In Australia people are paying these prices because there is no other option. That doesn't make it right though does it ?
I understand the economics of this all, I'm just wondering if I'm in the minority here thinking that profiteering is morally acceptable ?
Obviously the airlines want to make as much profit for as little product as possible - same as any other industry.
I have just spoken to a couple who have decided not to go back to a family members funeral because they can't afford the cost of the flights for all of them...... this sucks doesn't it ?
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Old Jun 4, 2012, 9:42 pm
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Which is it, do you want the answer to your title and original statement or an ethics debate?
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Old Jun 4, 2012, 10:36 pm
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Originally Posted by stereotongue
So basically you see no problem with charging whatever price they want ?
In Australia people are paying these prices because there is no other option. That doesn't make it right though does it ?
I understand the economics of this all, I'm just wondering if I'm in the minority here thinking that profiteering is morally acceptable ?
Obviously the airlines want to make as much profit for as little product as possible - same as any other industry.
I have just spoken to a couple who have decided not to go back to a family members funeral because they can't afford the cost of the flights for all of them...... this sucks doesn't it ?
Making profits is part of capitalism...morally preferable to all the failed and failing communist experiments, IMHO. One always has options...not flying is one of these.

On the other hand, from the outside, the aviation industry in Australia is not free from state meddling...protectionism can and most likely will result in higher prices in the absence of subsidies...
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Old Jun 5, 2012, 12:01 am
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Originally Posted by stereotongue
So basically you see no problem with charging whatever price they want ?
In Australia people are paying these prices because there is no other option. That doesn't make it right though does it ?
I understand the economics of this all, I'm just wondering if I'm in the minority here thinking that profiteering is morally acceptable ?
Obviously the airlines want to make as much profit for as little product as possible - same as any other industry.
I have just spoken to a couple who have decided not to go back to a family members funeral because they can't afford the cost of the flights for all of them...... this sucks doesn't it ?
There was a time when DEL-SIN-DEL (J SQ) < SIN-DEL-SIN (Y SQ), and DEL-SIN-DEL (F SQ) < SIN-DEL-SIN (J SQ) and on the F ticket you could do a literally a free add on to many destinations in Asia.

The reality of airline pricing is that no one knows how it works, except that they price to the market or economics 101. You will find all sorts of quirks in airline prices, or a more recent example

SFO-JFK one way was about ~1,500 in Business
OAK/SJC-JFK one way was about 500 in Business, the difference being the cradle seat on the SFO-JFK service. Even in the same city they are able to find different markets!
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Old Jun 5, 2012, 12:52 am
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Originally Posted by stereotongue
So basically you see no problem with charging whatever price they want ?
In Australia people are paying these prices because there is no other option. That doesn't make it right though does it ?
I understand the economics of this all, I'm just wondering if I'm in the minority here thinking that profiteering is morally acceptable ?
Obviously the airlines want to make as much profit for as little product as possible - same as any other industry.
I have just spoken to a couple who have decided not to go back to a family members funeral because they can't afford the cost of the flights for all of them...... this sucks doesn't it ?
It's all about the (more or less) free market - if prices are unnaturally high, someone will come in and undercut them. If prices are unnaturally low, there won't be enough seats/flights for everyone, and airlines may go out of business.

If you want some sort of 'protection' against profiteering, talk to your government, but even with that, flying long distances is expensive. Nothing you or anyone can do about that.
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Old Jun 5, 2012, 1:26 am
  #11  
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Singapore-Seoul in Business

CX: SGD 2600 (indirect)
TG: SGD 2200 (indirect)

OZ: SGD 2830 (Direct)
KE: SGD 2911 (Direct)

SQ: SGD 4470

Economics 101? Seems SQ is concerned about their renevue decline, charging this much more than their competition is not going to help?

Globalist
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Old Jun 5, 2012, 6:46 am
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You must factor in the weaker £. The fare for SYD-LHR is priced in AU$. If the pound now was as strong as it was in 2004 (when £1.00 equalled AU$2.50) then that would mean it would be cheaper for us Brits to fly SYD-LHR than the other way round.
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Old Jun 5, 2012, 8:36 am
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I understand your frustration stereotongue, but...

Originally Posted by Desert Traveller
Making profits is part of capitalism...morally preferable to all the failed and failing communist experiments, IMHO. One always has options...not flying is one of these.

On the other hand, from the outside, the aviation industry in Australia is not free from state meddling...protectionism can and most likely will result in higher prices in the absence of subsidies...
As Desert Traveller commented above, have you compared the price what QF/BA offer? VA/EY offer AUD 1,996 for the same flight. If you are simply targeting the price difference only, then please blame people who are happy to pay not airline company.

Originally Posted by stereotongue
I have just spoken to a couple who have decided not to go back to a family members funeral because they can't afford the cost of the flights for all of them...... this sucks doesn't it ?
Yes, it does. But again, it should apply to all transport methods, such as bus, train & etc. I do not mean to be rude, but if I really have to fly and want to stick with particular airline, then I would pay. But if I really have to fly but cheap, then I will look for LCC and would not complain the lack of service.
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Old Jun 5, 2012, 8:46 am
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No doubt there is a published fare difference of a few hundred $ between SYD-LHR and LHR-SYD, but has OP considered the possibility that the available fare classes on those specific dates for each direction maybe different. ie : SYD-LHR-SYD maybe booking under a higher fare class than LHR-SYD-LHR - hence the significant difference in price.
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Old Jun 5, 2012, 4:17 pm
  #15  
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Originally Posted by stereotongue
So basically you see no problem with charging whatever price they want ?
In Australia people are paying these prices because there is no other option. That doesn't make it right though does it ?
I understand the economics of this all, I'm just wondering if I'm in the minority here thinking that profiteering is morally acceptable ?
Obviously the airlines want to make as much profit for as little product as possible - same as any other industry.
I have just spoken to a couple who have decided not to go back to a family members funeral because they can't afford the cost of the flights for all of them...... this sucks doesn't it ?
SQ isn't the only one. In fact, I think SQ is charging the cheapest of the others eg BA/QF.

If you don't like the price, then try another carrier like EK, MH, CX, TG etc. There are many options to choose from - and many travel agencies to help you choose your options.

Just FYI - its still cheaper to fly from Australia to Europe than it is from SINGAPORE to Europe. Then I have to ask you - why?
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