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New South Wales - Sydney . Victoria - Melbourne
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Northern Territory - Darwin, Nhulunbuy . Western Australia - Perth
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Queensland - Brisbane, Cairns, Townsville
Qantas Airways Limited ABN 16 009 661 901
Further information and media releases can be found at the Qantas website: qantas.com
September 2010
AIRFARES
Airfares have continued to fall in real terms since the end of World War II as a result of factors that include: operational efficiencies derived from new technology; larger aircraft offering lower operating costs; airline growth leading to economies of scope and scale; increasing competition; and, more recently, computerised yield management systems that allow airlines to meet market demand with a far greater range of fares.
INTERNATIONAL FARES International airfare pricing is today determined by competition and demand, however this was not always the case. The International Air Transport Association's (IATA) 1946 Bermuda Agreement paved the way for IATA's involvement in setting international fares and cargo rates. Under the auspices of IATA, the industry introduced tourist class (now economy), offering lower fares in return for reduced leg room and inflight catering. Qantas introduced tourist class in 1954. With fares agreed between nations (not airlines) as part of bilateral air services agreements, special discounted fares were initially subject to Government approval throughout the world, with a more 'hands off' approach developing over time. The introduction of the Boeing 747, with its lower seat-kilometre costs, enabled Qantas to pioneer fare discounts in the 1970s (still subject to Government approval). In 1982, fare regulation ended with the withdrawal of the government from fare setting. For the first time, Qantas was able to offer discounted fares direct to the public. The tables below illustrate falls in Sydney-London return fares over time. Comparisons are based on the lowest return fares available in each year. In August 2010, the lowest basic Qantas return fare was A$1,873 (excluding taxes and charges) and the latest figure published for average ordinary pre-tax weekly earnings was A$1,256 for full-time work, excluding overtime (sources: Australian Bureau of Statistics and Qantas).
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