Oz public being ripped off for flights
Apr 24th 2009, 6:13 pm
#16
Joined: Dec 2003
Location: Hillarys, Perth
Posts: 3,973
Re: Oz public being ripped off for flights
I am currently searching for a return flight back to the UK in June. Other than Cathay pacific who are about $1500 return all the rest of the major airlines are over $2000. However when you compare the exact same flights from the british end ie. lon-syd return they are coming up less than £550($1200ish). Why is this and how is it fair that we are subsidising brits travelling here for holidays.
Apr 24th 2009, 6:30 pm
#17
Banned
Joined: Apr 2009
Posts: 1,054
Re: Oz public being ripped off for flights
If each major airline charges about the same for the same departure point then the departure point with the highest fare would have the highest charges (or taxes). No?
Comparing BA & QA, both charge the about same for the same route but if the first departure point is Sydney then both BA & QA's fares are about $500 higher (at low season for both). That suggests that charges are higher at Sydney or the airlines are both subsidized at London. No?
Comparing BA & QA, both charge the about same for the same route but if the first departure point is Sydney then both BA & QA's fares are about $500 higher (at low season for both). That suggests that charges are higher at Sydney or the airlines are both subsidized at London. No?
Apr 24th 2009, 6:48 pm
#18
Banned
Joined: Apr 2009
Posts: 1,054
Re: Oz public being ripped off for flights
If each major airline charges about the same for the same departure point then the departure point with the highest fare would have the highest charges (or taxes). No?
Comparing BA & QA, both charge the about same for the same route but if the first departure point is Sydney then both BA & QA's fares are about $500 higher (at low season for both). That suggests that charges are higher at Sydney or the airlines are both subsidized at London. No?
Comparing BA & QA, both charge the about same for the same route but if the first departure point is Sydney then both BA & QA's fares are about $500 higher (at low season for both). That suggests that charges are higher at Sydney or the airlines are both subsidized at London. No?
UK Taxpayers are effectively subsidising airlines to the tune of £300 per person every year
Revealed: airlines' £10bn government fuel subsidy
UK wanting to raising fuel levy rather than applying excise and VAT?:
US threatens Britain with legal action over airline taxes
Last edited by WillBlack; Apr 24th 2009 at 7:26 pm.
Apr 24th 2009, 7:51 pm
#19
BE Enthusiast
Joined: May 2007
Posts: 314
Re: Oz public being ripped off for flights
Am I the only person to think that the prevailing exchange rate has more to
do with such discrepancies than charging policy.
Depends which rate you use...and/or when you use it.
I wonder what the difference would be between when you got 1.8 dollars
to the pound and when you got 2.6 dollars to the pound....I can't be bothered
to work it out...just finished night shift....
HKA
x
do with such discrepancies than charging policy.
Depends which rate you use...and/or when you use it.
I wonder what the difference would be between when you got 1.8 dollars
to the pound and when you got 2.6 dollars to the pound....I can't be bothered
to work it out...just finished night shift....
HKA
x
Apr 24th 2009, 8:00 pm
#20
Forum Regular
Joined: Jul 2008
Posts: 116
Re: Oz public being ripped off for flights
Smaller market here, less competition because the Government subsidise QANTAS and have a tighter control as to who can fly into which airport and when. Added to that they don't actually care a great deal about the customers 
. Not sure about the subsidising Brits (not just British people coming here for holidays), more a case of fleecing the locals.
. Not sure about the subsidising Brits (not just British people coming here for holidays), more a case of fleecing the locals.Customer service ends right after.. g,day can I help you?....
Complaining on the the phone to Harvey Norman- furniture department.
"you said delivery would be 6 - 8 weeks..its now 13 weeks....etc,."
Responce from the "manager"... "Sorry about that mate... hope its not as bad for you as the guy who got his stuff delivered yerday 16 weeks after order!
I kid you not.... reason for delays.. the franchise holder packed it in and left....the staff did not know how safe their jobs were and did'nt give a toss about "our " problems!
But the petrol is cheaper - Tuesday and Wednesday!
Apr 24th 2009, 8:29 pm
#21
Banned
Joined: Apr 2009
Posts: 1,054
Re: Oz public being ripped off for flights
Am I the only person to think that the prevailing exchange rate has more to
do with such discrepancies than charging policy.
Depends which rate you use...and/or when you use it.
I wonder what the difference would be between when you got 1.8 dollars
to the pound and when you got 2.6 dollars to the pound....I can't be bothered
to work it out...just finished night shift....
HKA
x
do with such discrepancies than charging policy.
Depends which rate you use...and/or when you use it.
I wonder what the difference would be between when you got 1.8 dollars
to the pound and when you got 2.6 dollars to the pound....I can't be bothered
to work it out...just finished night shift....
HKA
x
Both BA and QA flights first departing from London are charged in £UK.
The exchange rate is currently $A2.03 / £UK1.00.
The price of each airline's equivalent flights is about the same. $A1,500 (£UK740) from London. $A2,000 (£UK985) from Sydney. (october low season)
The price of both BA and QA flights is lower for first departures from London by $A500.
Q: If the difference in fares is entirely due to exchange rate movements, what would the exchange rate have to be to make the fares equal?
A: 2.03 * (2,000 / 1,500) = $A2.707 / £UK1.00
The last time the exchange rate was about $A2.7 / £UK1.00 was briefly in 2008/October. £UK Exchange rate history
I do think slowness to adjust fares to exchange rate changes explain some of the difference but not all.
Last edited by WillBlack; Apr 24th 2009 at 8:35 pm.
Apr 24th 2009, 9:43 pm
#22
Banned
Joined: Apr 2009
Posts: 1,054
Re: Oz public being ripped off for flights
Cheap Flights (Aus)
About £UK500 from London-Sydney return:
Cheap Flights (UK)
First departing from London appears to be cheaper by about the same $500 even comparing the cheapest fares from London to the cheapest fares from Sydney.
Apr 24th 2009, 9:56 pm
#23
Frequent Flyer Member
Joined: Jun 2007
Location: Melbourne
Posts: 10,994
Re: Oz public being ripped off for flights
It's really a simple case of the price matching what the local market is prepared to pay, hence also the reason the 'same' flight departing on 18th December is a heck of a lot more expensive than one departing on say, 18th October for exactly the same product.
Point in case the buying frenzy on here for the recent Singapore Airlines $1400 fares. If at the same time the flights were nearly £700 ex London there wouldn't be nearly so much demand for them.
Does a loaf of bread cost the same in the UK and Aus? A litre of milk? Petrol? A Ford Focus? No....why should flights be any different?
Point in case the buying frenzy on here for the recent Singapore Airlines $1400 fares. If at the same time the flights were nearly £700 ex London there wouldn't be nearly so much demand for them.
Does a loaf of bread cost the same in the UK and Aus? A litre of milk? Petrol? A Ford Focus? No....why should flights be any different?
Last edited by bcworld; Apr 24th 2009 at 9:58 pm.
Apr 24th 2009, 10:15 pm
#24
Banned
Joined: Apr 2009
Posts: 1,054
Re: Oz public being ripped off for flights
It's really a simple case of the price matching what the local market is prepared to pay, hence also the reason the 'same' flight departing on 18th December is a heck of a lot more expensive than one departing on say, 18th October for exactly the same product.
Point in case the buying frenzy on here for the recent Singapore Airlines $1400 fares. If at the same time the flights were nearly £700 ex London there wouldn't be nearly so much demand for them.
Does a loaf of bread cost the same in the UK and Aus? A litre of milk? Petrol? A Ford Focus? No....why should flights be any different?
Point in case the buying frenzy on here for the recent Singapore Airlines $1400 fares. If at the same time the flights were nearly £700 ex London there wouldn't be nearly so much demand for them.
Does a loaf of bread cost the same in the UK and Aus? A litre of milk? Petrol? A Ford Focus? No....why should flights be any different?
That is how flights are different to a litre of milk; you could order a litre of milk from the UK, pay for it with £ from an Aus card and have it delivered in Aus. Not so flights, I believe.
Apr 24th 2009, 10:17 pm
#25
Lost in BE Cyberspace
Joined: Apr 2004
Posts: 10,375
Re: Oz public being ripped off for flights
The discussion on why aussies get ripped off on airfares goes waaaay back.
Uk is more competitive on pricing on many things.
Uk is more competitive on pricing on many things.
Apr 24th 2009, 10:19 pm
#26
Frequent Flyer Member
Joined: Jun 2007
Location: Melbourne
Posts: 10,994
Re: Oz public being ripped off for flights
Have you succeeded in buying a ticket at UK prices in £'s from Aus? More particularly one where you depart Aus before departing the UK? I don't think they will sell you one. Can you buy a one-way ticket with in the UK with £s from Aus departing from Aus while in Aus?
That is how flights are different to a litre of milk; you could order a litre of milk from the UK, pay for it with £ from an Aus card and have it delivered in Aus. Not so flights, I believe.
That is how flights are different to a litre of milk; you could order a litre of milk from the UK, pay for it with £ from an Aus card and have it delivered in Aus. Not so flights, I believe.
A travel agent or airline reservations in the UK can sell you a ticket Aus - UK - Aus and that will be charged to your credit card in Australian dollars - I can't see the problem with that.
Apr 24th 2009, 10:30 pm
#27
Banned
Joined: Apr 2009
Posts: 1,054
Re: Oz public being ripped off for flights
Have you ordered airline tickets from the UK and had them delivered to Aus and successfully used them? Electronic ticket delivery would seem to make this easy.
Apr 24th 2009, 10:45 pm
#28
Frequent Flyer Member
Joined: Jun 2007
Location: Melbourne
Posts: 10,994
Re: Oz public being ripped off for flights
I think you passed over the important point that one can order books, as an example, from the UK, pay in pounds using an Aus card (the currency exchange being "automated") and have them delivered to Aus. Best I know, purchase of airline tickets from the UK by a person in Aus is "resisted".
Apr 24th 2009, 10:45 pm
#29
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Joined: Apr 2009
Posts: 1,054
Re: Oz public being ripped off for flights
Yes it is cheaper but is it cheaper merely because it is more competitive or are the UK taxpayers subsidizing the airlines (by £10 billion or £166 per capita each year) through exempting the airlines of fuel excise and VAT as reported above?
Apr 24th 2009, 10:53 pm
#30
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Joined: Apr 2009
Posts: 1,054
Re: Oz public being ripped off for flights
It's not resisted at all. You can happily call up Trailfinders in the UK and ask them to book you Aus-UK-Aus - they'll have no problem. However you'll pay the price for airfares departing Australia (the Australian market) - if that's what you want to book. The airfares for each market are set such that the airline optimises the number of seats sold in each market, and provides the best availability for people in each market along the way. Therefore you buy the tickets according to the market in which you originate.
Cheaper through competition or through subsidy?
