Virgin Australia: More cuts to capacity likely in Western Australia as resources boom slows

    Virgin Australia stated the slowing of the regional economy and passenger market due to a weaker resources sector is likely to result in reductions in capacity and frequency on “many intrastate routes” and higher airfares as fly-in, fly-out traffic weakens (Perth Now, 17-Aug-2017). The carrier stated most of its intrastate routes in Western Australia “do not deliver acceptable commercial returns” and that reducing airfares on these routes “will be unlikely to boost demand and will simply reduce the total revenue we would otherwise earn on these services”. The carrier noted its total seat capacity on Western Australian routes has fallen by 8% since 2014. Intrastate route seat capacity has fallen by around 24% over the same period. The Western Australian State Government is conducting an inquiry into the high price of regional airfares, which is due to report on 28-Nov-2017.