Down Under Deals

摘要

Australia is not alone in that its airline market has faced a turbulent few years. Back in 2019 Australian domestic travel numbers peaked at 61.39 million passengers on scheduled air services - but then plummeted to 19.44 million in 2020. The post-pandemic recovery has since gathered pace to carry 50.19 million passengers in 2022, but that is still 18.2 short of pre-COVID levels. Last year, the Australian Competition and Consumer Commission said the domestic market was split four major ways, with Qantas holding 38, its subsidiary Jetstar 23, Virgin Australia 34 and Rex 5. This year, new entrant Bonza commenced services, so five domestic airlines are now competing for a share of a market now operating at pre-pandemic levels. Qantas Group CEO Alan Joyce has often said that the group's 60 share -including Jetstar - will be defended to the hilt in the face of any competition, while Virgin Australia CEO Jayne Hrdlicka is similarly committed to holding on to their 34 share. Meanwhile, Rex is expanding by adding more aircraft and routes, while Bonza, which commenced flying on January 31, is already establishing its third operational base and building a new 737 MAX aircraft fleet. The fascinating aspect is that all five airlines are heading in different directions with varying strategies, something very unusual in a country that had a tightly regulated and protected two-airline duopoly for the best part of 50 years. Air International spoke to each of the airlines and looked behind their strategies to make some sense of where the Australian domestic market, one of the most profitable in the world, is heading.