Air rivalry sees fares tumble

Air rivalry sees fares tumble
By admin


The introduction of Virgin Australia’s business class fares across the majority of its routes in January 2012 saw business fares dramatically fall over the 12 months to July 2012.

Figures from the Department of Infrastructure and Transport saw domestic business airfares index 64.6 in July, down from 107.7 the same month the previous year. The index is measured against 2003 fares, set as an index of 100.

Meanwhile, economy fares shot up from an index of 88.6 in July 2011, to 119.5 in July 2012 with the removal of Virgin Australia’s premium economy class fare which coincided with the launch of its business class product.

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