Ansett raises fares, more rises may follow

Ansett has raised its domestic airfares across the board by an average of 3.5 per cent. The only fares to escape the hike are its one-way 7-day advance purchase $99 and $143 specials between Sydney, Melbourne, Canberra and Brisbane. Among those to rise are Ansett's full economy (eg. one-way SYD-MEL, up $11 to $332) and 5-day advance purchase fares (eg. one-way MEL-ADEL, up $13 to $405). Rising fuel prices are believed to be behind the increases and Qantas is expected to match Ansett's rises.

Meanwhile, further hikes in airfares are possible with the threat of big increases in airport charges by Sydney Airports Corporation. It wants to raise landing, take-off, passenger movement and parking charges to the airlines by up to 50 per cent.