Airline Fares at Their Lowest in 20 Years

Good news to all passengers! The latest figures showed that plane fares for business class of domestic flights are at their lowest level in the last 20 years. Thanks to rivals Virgin and Qantas, airlines are forced to bring down the fares to bring in more customers.

Statistics also showed that business fares for October are about 40 percent cheaper compared to last year. The figure has been adjusted to reflect inflation.

According to the Bureau of Infrastructure, Transport and Regional Economics, business fares hit their lowest last July. The fares were also at their lowest since the bureau started maintaining fare records since October 1992.

The continuing battle between airlines has made prices more affordable to business-class passengers. Aside from Qantas and Virgin, Tiger Airways and Jetstar are also pushing each other to keep the prices low.

Statistics showed that “best discount” fares are about one-third lower compared to 2003.

John Borghetti said that discounting fares for business-class passenger has been aggressive since Ansett’s collapse in 2001. Borghetti is chief executive of Virgin.

Qantas has cornered the corporate travel market, which generates about $3.5 billion annually. Qantas has been leading in the segment since 2001.