Cheap fares go along with Ansett
Qantas CEO Geoff Dixon said yesterday that the extra-cheap airfares offered at the height of the price war will end along with the demise of Ansett. He refused to guarantee that fares won't rise but said that Qantas will be competitive with Virgin Blue.
“The consumer's been the biggest winner from airline deregulation”, he said, “and they'll continue to be… but we'll never go back to the fares there were before, that's just not on”.
Mr Dixon said that the days of $35 one-way fares between Melbourne and Sydney were a thing of the past. He also accused the ACCC of being “over-zealous” in its policing of the aviation industry, to which Allan Fels responded that Qantas now has a high degree of market power which requires “careful scrutiny”.