NKSK version 2

For those who explain away Australian high prices compared with the UK due to the supposed ‘small market’ syndrome, I thought I’d paste the following from Brunei’s local paper.

Just to put this in context, Brunei’s market is approximately 360000 (i.e. about 1.75% that of Australia. A Brunei dollar is worth approximately 70% of an Australian dollar so BND$1000 is approx. AUS$700.
Brunei is about 14 hours flight from the UK and is the stop-off for Royal Brunei Airlines to Australia.

"Malaysian Airlines is offering promotional international travel airfares in Brunei from March 17 to 31, said Yuzer Yusof, Area Manager for Brunei, in a press conference yesterday.
During the two-week selling period, Malaysian Airlines is offering favourite destinations to Kuala Lumpur for B$200 and Kota Kinabalu for B$85 on return flights from Brunei.
Other destinations from Kuala Lumpur include Madras, Bangalore, Calcutta, Bombay and Dhaka for B$420, Taipei and Kaoshiung for B$475 and B$980 for London plus other Malaysian Airlines destinations in Europe, except Amsterdam, selling at B$1050."

Hutch

Were you aware that Royal Brunei airlines are heavily subsidised by Sultan Sir Hassanal Bolkiah, the Sultan of Brunei, one of the richest men on the planet?

NKSK version 2

Yes, I know that but the airline is Malaysian Airlines - the same one which is currently rationalising (cutting manchester from its direct schedules) - and not - as far as I know - subsidised.

Vash the Stampede

Source.
Source.

Amazulu

Australia is a great country but unfortunately it is rife with protectionism, price controls & cosy little 'agreements' between suppliers/manufacturers/retailers. I think it has little to do with the size of the market here, 20 million is a large population in my opinion, but more to with the people being 'conditioned' into being ripped off. People here accept it & put up with it hence suppliers get away with it. It's the Aussie way.

NKSK version 2

[QUOTE=Vash the Stampede]Source.
Brunei isn't Malaysia, Vash. It's a different country - so it hasn't got anything to do with the domestic route schedule or subsidy.

Vash the Stampede

I didn't say that it was.

I was addressing your comments about Malaysian Airlines, of which you said:

I was pointing out that Malaysian Airlines is indeed subsidised.

jad n rich

It was what? a month or so ago we were told we could not have another airline fly the USA route, so the expected price falls of 30% 40% on USA airfares did not happen. Gov said it was to protect Qantas jobs.

Yesterday Qantas workers were marching in Cities protesting the loss of their jobs which have been sent overseas.

Interesting comment on another subject too, as the marchers were shown marching to save there jobs, the news commented that from Monday, when workplace reform comes in this will be banned.

Oh the land of milk and honey

Vash the Stampede

Elaborate. Details of specific examples will assist your claim.

Are you thinking of union power in Australia? I refer you to Howard's IR reform.

Are you thinking of the building and construction industry? I refer you to Howard's Royal Commission into that industry.

What a load of tosh.

Firstly, 20 million is a very small population in global terms - particularly for a country the size of Australia. Suid Afrika has more than twice that number - and is, may I remind you, one of the most violent and corrupt nations on the face of the planet. I guess people must like it that way - because if they didn't, they wouldn't put up with it. Right?

Secondly, Australian farmers are among the most efficient in the world. They receive no government subsidies (unlike their inefficient American and European counterparts, who rely on government handouts, import tariffs and industry protectionism.) Australian airlines are not even part-owned by the government, and receive no government subsidies.

Thirdly, Australians don't like being ripped off, and protest very strongly when they know that they have been. They are not "conditioned" to putting up with it, and it is not "the Australian way."

Fourthly, there are some things that the average punter on the street simply cannot change - much as he would like to.

Certain government decisions (such as the ill-fated war on Iraq) and the unstoppable power of multinational corporations fall into this category.

Fifthly, Australia has government legislation which prohibits price controls, such as price-fixing and inter-corporate deals. This legislation is guarded by the ACCC (Australian Competition and Consumer Commission.)

The ACCC has achieved many successes, including fines against multinational supermarkets such as Woolworths (Safeway) for fixing the price of bread, and Coles/Myer for uncompetitive alcohol prices.

Earlier this year, it handed down a decision in favour of Virgin Blue (the Australian arm of Richard Branson's low-budget airline) which had protested against uncompetitive behaviour by Sydney Airport.

In 2002, Australia Post proposed to increase the prices for large letters and bulk PreSort mail. This was rejected by the ACCC.

A redrafted proposal (submitted a month later) was accepted by the ACCC on the grounds that it was (a) substantially lower than the initial proposal, and (b) acceptable to interested parties (such as private mail services, small businesses, retailers and private citizens.)

The ACCC also noted that Australia Post was making a loss on the current price of a standard letter and would require several years to make up the deficit, even after the proposed price rise.

In 2003, the price of a basic Australian postage stamp rose by 5 cents (around 1.5p) for the first time in ten years. By contrast, Royal Mail has lifted its prices several times in the last 5 years.

Protectionism? Price controls? Cosy little "agreements" between manufacturers and suppliers? Sounds like a perfect description of British supermarkets - not the Australian economy.

Go and read this book.

Then come back and talk to me again.

Vash the Stampede

All this in a nation supposedly rife with protectionism, price-fixing and cushy deals.

Scotty123

I say if we all pitch in a million quid each we could start our own low cost airline from aussie to uk whos with me