News

Market update



Journal: TWUKSection:
Title: Issue Date: 30/04/01
Author: Page Number: 38
Copyright: Other





Market update

AIRLINES have taken advantage of the unprecedented high demand for flights to Australia by putting up air fares.

Prices for a return ticket are £20-£50 higher than this time last year, according to Gold Medal, one of the biggest flight consolidators to Australia.

Gold Medal air product manager Nigel Fell said there were also fewer promotional fares in February than during the same month last year, which is the start of the shoulder season for flights Down Under. “The level of demand is such that airlines feel there is less urgency to secure business,” he said.

A record 80,000 Britons visited Australia last December, making the UK its single largest overseas market for the first time. According to the Australian Tourist Commission, enquiries for this year are already up by 40%.

Such a high level of demand has prompted British Airways to relaunch flights between Heathrow and Melbourne, which it axed two years ago. The new five-times-a-week service will operate via Singapore.

Qantas has also added two extra flights a week between Heathrow and Sydney via Bangkok, giving the airline a daily service from April 1. The additional flights will give BA and Qantas, which are partners in the Oneworld alliance, a total of 38 flights a week between the UK and Australia.

In spite of the high demand, air fares are not likely to rise much higher due to the already heavy competition on the kangaroo route.

Malcolm Trevor, Qantas market development manager UKand Ireland, said:”There are still more than 30 airlines operating to Australia so it is difficult to put up fares. I imagine they will remain good value, with returns starting at £700 including two stopovers and round-the-world tickets going for just over £900.”

Taking off: strong demand has prompted BA to relaunch flights to Melbourne, a service it axed two years ago

Carriers increase cost of going Down Under



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