Business fares keep falling

Business fares keep falling
By admin


Plummeting domestic business fares coincided with a rapid rise in economy fares over the 12 months to October 2012.

Figures from the Department of Infrastructure and Transport saw the domestic business airfares index fall to 64.4 in October, down from 108 the same month the previous year as the effect of Virgin Australia’s introduction of business class fares across the majority of its routes in January 2012 continued to be seen. The index is measured against 2003 fares, set as an index of 100.

Meanwhile, economy fares rocketed from 94.8 in October 2011 to 121.6 in October 2012, largely due to Virgin Australia’s removal of its premium economy class fare at the time of its business class roll out, which saw the full economy index rise substantially in January 2012.

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