23 July 2008

Price wars a boost for Tullamarine

Fairfax media reports say that Victorians are flying internationally and domestically in record numbers, shrugging off the increased cost of air travel and cuts in capacity.

Figures to be released today by Melbourne Airport will show the biggest growth in three years in both markets, with 1.7 million more passengers flying in the 2007-08 financial year than the previous corresponding period.

International passengers going through Melbourne Airport hit 4.7 million for the first time, 5% or 242,000 passengers more than 2006-07. The arrival of Tiger Airways last year and the price war between the budget carriers was largely responsible for a 9% increase in domestic travel, lifting passenger numbers from 17,806 to 19,363 for 2007-08.

The figures come as Qantas announced on Friday it would cut 1500 jobs, and Virgin Blue said it would begin charging a fee for passengers flying on discount fares to check in their baggage.

Melbourne Airport's chief executive, Chris Woodruff, said the figures were a bright spot amid the gloomy headlines relating to the aviation industry.

"Melbourne Airport is the only capital city east coast airport with the six major domestic airlines, and it has clearly driven business growth," he said.

"On the international front, new capacity from carriers such as Qantas, Cathay Pacific, Thai Airways, Air New Zealand Ã¢â¬~¦ and others has meant more seats available in the 2007-08 year."

Growth at Melbourne Airport eclipses Sydney Airport's half-year passenger numbers released last week, which showed growth of 5.6% overall.

A Report by The Mole from Fairfax media