Qantas announced it will introduce a discounted fares scheme covering six remote cities in Western Australia to access more affordable air transport.
Effective Nov-2017, Qantas will offer a variable discount of between 10% and 30% for economy class fares for residents in Broome, Kalgoorlie, Karratha, Paraburdoo, Port Hedland and Newman to travel between their local airport and Perth.
The discounted fare scheme will also be implemented in Mount Isa for travel to Townsville and Brisbane, and in Cloncurry for travel to Townsville. Other details:
- The discount will apply to the Qantas-controlled component of return fares, which excludes airport charges, security fees and GST;
- The discounted fares scheme will be run as a 12 month trial, during which Qantas will review the uptake and revenue impact;
- The discounts will only be available for personal travel and will be limited to four return flights a year for each resident.
Qantas selected these markets as residents are “competing with a very high volume of corporate travel, specifically from the resource industry”.
Qantas Domestic CEO Andrew David said the economics of air travel to these communities can be severely impacted by their remoteness, levels of demand and high operating costs.
“We’ve listened to residents in regional communities around WA and understand their concerns on the cost of travel. The reality is that the per kilometre cost on a small aircraft is significantly higher than a larger aircraft that operates between major cities, because the costs are divided by a much higher number of passengers. These regional routes don’t have the levels of demand needed to sustain a much larger aircraft and we want to maintain the frequency of services.”