Overnight, the Australian Government unveiled a $1.2b aviation support package, primarily designed to provide extra financial assistance to keep airlines running. But passengers will benefit too, with certain routes getting fares slashed by 50% to boost tourism.
Half-price travel to a range of regional towns
Thirteen regions, which primarily rely on international tourism, will be eligible for the discount. To counter claims of ‘price jacking, Qantas says the price cut will be based on “median prices to key regional destinations.” Those places are:
- Queensland: Gold Coast, Cairns, Whitsundays, Sunshine Coast
- Northern Territory: Uluru, Alice Springs
- Tasmania: Launceston, Devonport, Burnie
- Western Australia: Broome
- South Australia: Kangaroo Island
- New South Wales: Merimbula
- Victoria: Avalon
The scheme will kick-in from April to July, with Qantas, Virgin Australia, and Jetstar expected to the main beneficiaries on those routes. Further details are expected in the coming weeks.
Support scheme welcomed with open arms
Jayne Hrdlicka, Virgin Australia CEO, said the package would play a ‘vital role in … stimulating tourism, jobs, and investment across Australia’.
This isn’t just good news for us, this is good news for all Australians. The economic impact this will have cannot be underestimated. This is a once in a generation event that is going to give the entire tourism industry supply chain a significant boost, which it desperately needs.
– Jayne Hrdlicka, Virgin Australia CEO, 11 March 2021
Qantas Group CEO, Alan Joyce, also welcomed the initiative and remarked it would help bring domestic crews back to work faster.
With the vaccine rollout now giving more certainty that state borders will stay open, this is the perfect time to provide stimulus and get people travelling domestically again, particularly given there won’t be any international tourists for another seven months
– Alan Joyce, Qantas Group CEO, 11 March 2021
Virgin Australia is currently operating at 50% of its pre-pandemic capacity and is aiming to ramp this up to 70% by the Easter break, just 3 weeks away. This is also coinciding with the airlines’ upcoming relaunch of Business Class service and the Economy buy-on-board menu.
Meanwhile, the Red Roo is sitting pretty at 60% of pre-pandemic domestic flying levels and is looking to boost this to 80% before July 2021. The group estimates that around 550,000 discount fares across Qantas and Jetstar will be offered, which will help improve capacity.
Frequent flyers will continue to be able to earn Velocity Points and Qantas Points on eligible discounted flights, though the 50% subsidy isn’t expected to extend to reward seat bookings at this stage.
This is useless unless they stop the border closures. There are few of us who can risk being stuck in a city or state lockdown and/or having to quarantine for 2 weeks at $3500 to get back to our own state if there’s a border closure. Not to mention not being able to get back to work and the ramifications that has on employers. There are bigger concerns to address before offering something like this.
I live in Brisbane. The flights are limited to Uluru and Burnie. The Sunshine Coast is massively booked out and will attract people who want to fly to Brisbane, an hour train trip away. $1.2 Billion for 800,000 flights assumes fares of $3,000. Targeting well heeled travellers who would normally be going overseas (I am one) seems a strange way to use taxpayers money.
Will we get Frequent Flyer Points? The airlines get full payment from both us and the Govt. There isn’t any fair reason why we shouldn’t get them.
At this stage, there is no indication you won’t earn frequent flyer points. It should be treated as a standard fare and you should earn the standard rate on them.
Thanks, that is what I thought/hoped. It would be pretty bad if the airlines didn’t allow the FF points.
This is great news! Problem is – West Australians can only go to Alice Springs. Doesn’t make sense.
I don’t mean to be unkind Dawn, but you voted in (again) a premier who (like ours over here in Vic.) locks down the state when someone sneezes.
I’m pretty sure that you’d have more choice if people thought the borders wouldn’t close at the drop of the hat.
Is has the dates they go on sale but what are the travel dates? You can the available fares from the 1st April, can you travel from the 1st also?
Price jacking has to be the biggest concern here, we’ve seen building companies with HomeBuilder subsidies, will be interesting to see price comparison before and after the subsidies.
This is all terrific news BUT which fare class is the discount based on. I’m a little skeptical that the % might be taken from a published fare (or a flexible, high priced fare) and there will be no difference between this initiative and the prevailing best fares in the market.
We’ll find that out soon, though I hope the government would ensure there are safeguards in place to prevent these issues — they’ll definitely hear the complaints otherwise!