Despite repeated blockages across the country, domestic air travel is cheaper than ever as airlines try to get the attention of Australians.
And it was the low-cost airline Rex that led the price war, according to the Australian Competition and Consumer Commission (ACCC).
“Prior to the recent Victorian epidemics, the domestic airline industry had experienced relatively less and less disruption for several months, and the combination of cheaper airfares and growing consumer confidence to travel interstate was essential to the recovery, ”said ACCC President Rod Sims. mentionned.
Rex has expanded its reach in the capital and, starting this week, will operate six routes connecting Sydney, Melbourne, the Gold Coast, Adelaide and Canberra.
In response to Rex’s promotional entry rates on new routes, Qantas, Jetstar and Virgin achieved competitive sales that put downward pressure on prices, Sims said.
Consumers traveling between Sydney and Canberra could benefit the most, as Qantas was the only operator on the route since Virgin withdrew service in March 2020.
“The impact of increased competition is visible on all of Rex’s new intercity routes, including Sydney-Melbourne, where air fares have fallen to their lowest level in a decade after Rex joined,” said Sims.
But although the ACCC has said Rex has escalated the price war, the airline has publicly expressed concerns that rivals have increased capacity beyond passenger demand.
The ACCC said it is assessing the impact on competition of increasing capacity and reducing air fares on certain routes.
“Increasing capacity to meet demand and offering reduced fares is usually a sign of competition and is good for consumers,” Sims said.
“However, the ACCC will consider taking enforcement action if capacity and pricing decisions seriously undermine competition, including by preventing competitors from competing effectively, or by removing a competitor from a route or by bankruptcy.”
How to take advantage of lower prices
Compare the prices; there are plenty of flights available right now for domestic travel, so be sure to use comparison websites to find the cheapest deal.
Also consider subscribing to airline newsletters. They often advertise deals to customers in a regular newsletter before posting them online.
Follow the request. Airlines often add flight paths in high demand areas, so you’re more likely to get a cheap flight if you take a popular route than something more specialized.
Another tip is to avoid travel on Fridays and Sundays. If you’re looking to do a bit of domestic travel, consider using the annual leave days you racked up last year and taking a midweek trip.
Many people will travel on weekends, whether it’s a long weekend or a friend’s wedding, these are the most expensive days to travel by plane.
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