Gouging Ticket Prices for Pacific Route
Why isn’t the Australian government or the ACCC investigating price fixing for passenger tickets on the pacific route to the US? I recently did some research on ticket pricing using local and US based airline websites (Qantas, American Airlines, United and Air New Zealand) and found that OneWorld alliance partners were charging almost double the ticket price, Qantas was charging 90% more and American Airlines was charging 98% more for Australians to travel to the US in comparison to the ticket price being charged to our American friends travelling to Australia at the same time (MEL to SFO – 1 to 14 August). The competitor airlines flying the pacific route United and Air New Zealand (members of the Star Alliance), were both charging coincidently 30% more. Is this a coincidence or price fixing that the airlines in the same alliance are charging similar fare prices? Why are Australians being charged almost double the ticket price? More competition is needed and deregulation to stop this unfair price gouging by our so called ‘own’ Australian airline. Not only are we paying almost double the ticket price, to top it all off, Australians are charged an $18 credit card booking fee. Qantas does not charge Americans any fee for accepting payment by credit card on the Qantas North America website.
The Rudd Government needs to open the pacific route to allow Emirates, Singapore Airlines and Virgin compete and only then will we see much better ticket prices and better passenger service.
Being so isolated geographically with minimal competition comes at a high price – we are being totally ripped off!
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