ozzieeagle

Not exactly sure when the last glich in the oil price was, circa 15 months ago I think, but it put Air fares up big time.

Now with the Aussie dollar performing like the Deutch Mark did in the 70's and out performing most other currencys (thanks China ), Will this make air fares go down. Apparently the AUD is expected to hit parity with the USD in the next few months.

If the dollar keeps going up will Aussie bought air fares go down. Anyone know if the AUD is relevant in international air fares.

Surely some cheaper fares are on the way, if they can go up because of international circumstances surely they can go down ?

I wouldn't mind a 10pct saving in fares, if one is due.


Thanks
Prospective Air fare Buyer
Melbourne

TheSubMainMan

Or may be the Airlines will just suffer a 10% increase in profit margins


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Amazulu

Some points:
The AUD may gain parity with the USD but it's going to take more than a few months - and there may be big fluctuations along the way.
I can't see the USD getting much weaker or for long periods. The US economy is basically sound and the weaker USD is going to benefit their economy, probably causing the USD to rise.
I think airfares will remain basically the same but there may be spurts of big discounts. There is more competition coming in to Australia - both for international and domestic flights - fares should come down.

ozzieeagle

Hopefully your correct, I may wait until Feb, to book my June ticket next year. Currently AUD 2,340 return, (including taxes) into Gatwick of all places with UAE, If I get that cheaper, during peak season I'll be well happy. A fellow Italian worker, is paying 3,000 grand for a trip back to Sicily with UAE.

asprilla

I think that we will see the continued decline of the US$ against the major currencies throughout the remainder of 2007 and for at least a year or two to come. Reasons being;
practically no growth in US GDP,
very few new jobs being created in the US,
increasing consumer uncertainty,
increasing household credit pressures,
increased aversion to risk as a result of recent market events.

The bigger picture also points towards an inevitable slide in the US$ :
Increasing risk associated with growing chinese US$ reserves,
possibility of Saudi Arabia unpegging from US$.

One major thing in the USA's favour is that it is a massive importer of goods, and as such China cannot really afford for the $ to depreciate too far.

There will definitely be swings and roundabouts along the way, but I think that the only way is down for the dollar. By Oct 2008 I reckon that we will all be buying lots and lots of things from the US via ebay, as AU$1 will be worth more than US$1.

With regard to cheap flights, I don't think that the strength of the aussie dollar will help us out much there. Our best hope is for increased competition in the domestic air travel market.

TheSubMainMan

More dollars to buy the same amount of goods = inflation = interest rate rises. = more recession = more defaults = ???

Where will it end

O sorry, stronger dollar thou!

SKIPPI79

So if I can put it right, then the dollar will continue to rise and us that are heading there will lose out!!!
Not Good!!!!
Need to save even more......s**t
Better start now then