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Qantas defend their pricing at airline hearing | The North West Star

Mr David said their major costs were labour, fuel, maintenance though like Virgin Airlines in their Brisbane hearing he also blamed airport charges.

“Airport charges make up a significant and growing portion of the price of airfares,” Mr David said.

“Airport and security charges make up 17 per cent of the average fare for QantasLink on our 74-seat turboprop on a bucket of intra-Queensland routes.”

He also said airlines around the world used dynamic pricing to sell seats on a flight, which can mean flights booked closer to the day can be extremely expensive.

“The first seats sold on a flight are typically the cheapest while the last few fares are the most expensive,” he said.

“And if you travel at short notice, there’s a good chance you’ll pay more than someone who booked three months earlier.”

Mr David said this pricing model was universal to the tourism sector.

“This is how the Mercure hotel that we are in today, or Budget car rental at Darwin Airport, also price their services,” he said.

“When it gets closer to the day you need a room – it may well cost more. Without dynamic pricing, the customers who can afford to travel the least would pay more, and the customers who can afford to travel more would pay less.”

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Qantas defend their pricing at airline hearing | The North West Star.