Page 7 - AAA SEPTEMBER - OCOTBER 2017 Online Magazine

COVER STORY AIR FARES

Most legacy airlines have changed their while the average weekly earnings were but a check of the seat plans reveal more
pricing model – thanks to computerisation A$32.30. Translated into today’s average rows than those of the early 70s. The fact
– to both offer a tailored product and to weekly earnings of A$1575, the equivalent is that the economy space on a widebody
compete with Ultra Low-Cost Carriers that pricing is a return fare of A$65,536 and aircraft has reduced by 13.7 per cent since
offer rock bottom fares. The reality is that A$52,385 respectively! On international the introduction of the 747 in 1970. However,
they have no choice because surveys show routes, the two cabin classes of 1955 have the number of weeks required to earn the
that 70 per cent of travelers cite price as the been replaced in most cases by four, with economy return fare over the same period
main driver in their choice of airline. With Business Class introduced by Qantas in 1979 has plummeted by a staggering 91 per cent.
global travel websites ranking airlines by price, and Premium Economy added by British The Business Class equation, however, has a
legacy carriers must have a low-ball product Caledonian in the early 1980s. twist. In the early 1980s, the return fare from
to figure in the website rankings. Long gone The two most significant falls in fares Sydney to London was around A$1,600 or
are the days of travel agents being the main occurred in the 1960s, when jet travel seven weeks’ salary whereas today the fare
source for booking passengers. Airlines argue, became widespread, and then in the 1970s is around 5.50 weeks’ salary - a seemingly
correctly, that these days one size certainly with the introduction of the 747, DC-10, modest reduction. However, what has
does not fit all when it comes to product Tristar and A300. The Sydney-to-London changed is the space, which has more than
and fares. Whereas once travelers had two economy fare fell 45 per cent between 1959 doubled from a basic seat (DC-9 first class
choices of First and Tourist (Economy) class - 1970 and plunged 64 per cent over the next seat) to a lie flat bed or suite. Expressed
with the same fare levels year-round, today 10 years as airlines took delivery of widebody in a dollar per cubic foot measure over the
passengers are faced with a mind-numbing equipment. In the 1970s, the late Sir Freddie same period, the cost of business class has
array of product and fare options. Laker introduced mass travel on DC-10s, dropped 63 per cent.
prompting traditional airlines, which were
Are We Really Being Squeezed? facing competition, to add more seats to their Premium Economy Has Emerged as a
Certainly, the space in economy is less but aircraft to compete or ward off the threat. All Real Value Leader
countering that, the options for economy 747 operators increased the number of seats Introduced by British Caledonian, PY gained
passengers have never been greater. An by reducing the distance between rows and wider momentum in the last decade as
Asian Airlines and Aerospace study of the adding a seat across the width. Initially the airlines realised that seats would be filled not
Sydney to London air route – which has been 747 had a 3-4-2 configuration with seats set by downgrading business class passengers
liberalised but never de-regulated - shows at about 34 inches apart in economy. Today, but by upscaling economy passengers
extraordinary declines in airfares since 1955. that has shrunk to 31 or 32 inches. Likewise, looking for some separation and extra
In a first, the study also looks at the reduction the generous 2-4-2 configurations on DC-10s legroom room. Premium Economy has also
or increase in space of each class. In 1955, the and Tristars have given way to 2-5-2 layouts. declined in price. In 2000, the return PY fare
First Class return fare to London was A$1344 Airlines claim the seat pitch has been to London was A$4000 or five weeks’ average
and Economy a little cheaper at A$1074.30 maintained as current seats are thinner, earnings. Today, it is A$3,600 or just over two

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