An Aviation Insider Has Suggested Airline Ticket Prices Could Soar To 1 000 As
An aviation insider has suggested airline ticket prices could soar to $1,000 as [/news/qantas/index.html Qantas] exploited its monopoly over domestic air travel.
Virgin Australia confirmed it will be going into voluntary administration, leaving 16,000 direct and indirect jobs in jeopardy until it is restructured or rescued.
The Velocity Frequent Flyer program is also in doubt, leaving customers with nothing to show after many years of loyalty.
Sir Richard Branson, a flamboyant British billionaire, brought some competition to Australia two decades ago when his new budget carrier Virgin Blue filled a gap left by the collapse of Ansett Australia.
The era of intense competition is set to end, leaving Qantas without any competitors on key domestic routes, sparking fear among tourist operators in regional areas.
An aviation insider has suggested airline ticket prices could soar to $1,000 as Qantas exploited its monopoly over domestic air travel.
Virgin Australia confirmed it will be going into voluntary administration, leaving 16,000 direct and indirect jobs (flight attendants at Brisabne airport, pictured on April 21, 2020) in jeopardy until it is restructured or rescued
A businessman with inside knowledge of Australia's aviation industry said the flying kangaroo airline was likely to ruthlessly exploit its monopoly, which could see passengers charged up to $1,000 for a one-way Sydney to Melbourne flight.
That's a tenfold increase on the $100 tickets Qantas and Virgin were offering before COVID-19 pandemic.
'If Virgin doesn't get restructured, it's not a possibility, it's a certainty,' he told Daily Mail Australia on Tuesday.
'I hate monopolies.
Monopolists can do whatever they like. There is nothing good you can say about a monopoly.'
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The aviation insider also feared the Australian Competition and Consumer Commission would be powerless to stop Qantas from ripping off the flying public.
'The ACCC can only do what it's empowered to do and the ACCC has no power to stop gouging prices,' he said.
'There's no law to stop price gouging.'
Virgin Australia customers are also at risk of losing their Velocity Frequent Flyer points.
Financial comparison website Finder's editor-in-chief Angus Kidman said while it is a separate company to Virgin Australia, it was very much tied up with the airline.
Sir Richard Branson, a flamboyant British billionaire, brought some competition to Australia in 2002 when his new budget carrier Virgin Blue filled a gap left by the collapse of Ansett Australia
'For sites.google.com frequent flyer points, the picture is still murky,' he told Daily Mail Australia.
<div class="art-ins mol-factbox floatRHS news" data-version="2" id="mol-dc1ebf00-837b-11ea-9739-8f4c95db8973" website Australia's demise could see $1,000 airfares, lost flyer points