Qantas Cancellations Raise Concerns Over Airfare Pricing
Recent cancellations by Australian airline Qantas have sparked concerns among travelers regarding airfare pricing. Data from Sydney Airport reveals that there were significant numbers of cancellations in June for reasons other than weather or air traffic control issues. On days without specific problems, there were a total of 127 cancellations on the popular Sydney to Melbourne route, including 65 cancellations by Qantas and 18 by Jetstar.
Qantas CEO Alan Joyce defended the cancellations, stating that when the airline has to cancel flights for maintenance or technical reasons, they prefer to concentrate the cancellations on busy routes such as Sydney to Melbourne. This approach allows them to minimize the disruption to customers by accommodating them on later flights, given the high frequency of these routes. However, critics argue that these last-minute cancellations are just the tip of the iceberg.
Former executive director of think tank the McKell Institute, James Pawluk, suggests that every cancelled flight, whether on the day or weeks in advance, enables airlines to keep airfares higher than they otherwise would. Pawluk explains that airlines can leave airfares high as the departure date approaches because they have the flexibility to cancel flights and rebook passengers on remaining flights, thereby maximizing seat sales.
Pawluk further argues that if airlines were unable to cancel flights past a certain point, they would be compelled to lower airfares or reduce the number of scheduled services. This would increase capacity for other carriers and result in more competitive pricing. Pawluk’s analysis challenges the current lack of transparency surrounding flight cancellations and supports calls for forensic audits of cancellation data.
It is worth noting that Qantas is not always the worst offender when it comes to cancellations. In July, Virgin Australia had higher cancellation rates on the Sydney to Melbourne route compared to Qantas or Jetstar. However, Sydney Airport asserts that there is no clarity regarding the reasons behind the cancellations by Qantas and other airlines. The airport supports former Productivity Commission chairman Peter Harris’s call for greater transparency through forensic audits of the cancellation data.
Sydney Airport emphasizes that the high cancellation rates at a slot-constrained airport like Sydney have a significant disruptive impact on passengers and inefficiently utilize the limited arrival and landing slots. This limits customers’ choices at a time when rising living costs are already placing a burden on households that are forced to pay record-high airfares.
The concerns raised by travelers and industry stakeholders highlight the need for better transparency and accountability in airfare pricing and flight cancellations. As the discussion continues, travelers hope for improvement in the system that would ultimately provide more affordable and reliable air travel options.
