THE final curtain call for Ansett, following the backward-manoeuvring by Tesna, will in itself have only a small overall negative economic impact, but it will hit the pockets of travellers, industry observers agree.
THE final curtain call for Ansett, following the backward-manoeuvring by Tesna, will in itself have only a small overall negative economic impact, but it will hit the pockets of travellers, industry observers agree.
Most of the damage occurred already in Sept-ember, when a shortage of aeroplanes in the sky had a dramatic impact on tourism and business – a situation that has since been address-ed when both Qantas and Virgin Blue increased capacity to fill the void.
However, the real test is expected in the coming days, with industry ob-servers warning that the two surviving airlines, Qantas and Virgin Blue, are likely to take advantage of the demise of Ansett and force prices up.
Tourism Council of WA president Manny Papadoulis said although the two airlines had reached only 80 per cent of original capacity, they were carrying just as many people and capacity was likely to increase as the airlines increased the size of their fleet.
Travel agency firm Travel Design Professionals partner John Hughes said his corporate clients had not been affected by the collapse last year because his business, as part of the United Travel Agent group, used Qantas as the preferred airline.
However, he said that because the airline was now operating at full capacity, it caused some difficulties for business travellers.
“It is still fairly difficult to get people on flights that you want. If you wanted to go tomorrow it would be difficult to find a place,” Mr Hughes said.
“I know Qantas has put on extra flights and some smaller planes have been upgraded to larger planes.”
“Some airfares have conditions that you can’t change it or fly on a different day so they are no good for the corporate traveller.”
Flight Centre Limited corporate general manger Danny O’Brien said he expected travelling conditions to continue to be extremely tight for the next few weeks until after Easter when Qantas and Virgin Blue are expected to in-crease capacity further.
“From a state perspective, it (the Tesna withdrawal from Ansett) will be nothing like the original Ansett collapse.
“However, fairly quickly, in a fortnight or so, prices will be felt and that is
what the industry is very worried about,” Mr Papadoulis said.
“The average fares for the next six months will be a lot higher than in the past six months.”
Mr O’Brien said prices could jump by as much as 30 per cent in the next two weeks.
Mr Papadoulis said that could be devastating for the estimated 5,000 WA tourism businesses and other affected sectors of the economy such as retail and hospitality.
“If the air fares go through the roof then the industry really suffers,” he said.
The Tourism Council is so concerned with the future of the airline industry and its impact on the WA economy that a special conference is being held later this month looking at Aviation Policy in WA.
“The State and Federal Governments really now have to sit down and come up with a plan that provides WA and the rest of Australia with a cheap viable travel industry,” Mr Papadoulis said.
“We need to look at what systems need to be put in place to ensure that travel
is affordable, safe and effective.”
He said the industry was now at a critical stage. “It was 1990 that the industry was deregulated and it doesn’t seem to have really worked,” he said.
Chamber of Commerce and Industry of WA chief economist Nicky Cusworth said she was concerned that the Government may res-pond to the collapse by increasing regulation and removing competition.
“CCI’s main concern is that prices may rise in
the absence of real competition and that would add to business costs and affect consumer demand and tourism,” Ms Cusworth said.
“We hope the Governments respond in ways which encourage the re-emergence of genuine competition.”
Most of the damage occurred already in Sept-ember, when a shortage of aeroplanes in the sky had a dramatic impact on tourism and business – a situation that has since been address-ed when both Qantas and Virgin Blue increased capacity to fill the void.
However, the real test is expected in the coming days, with industry ob-servers warning that the two surviving airlines, Qantas and Virgin Blue, are likely to take advantage of the demise of Ansett and force prices up.
Tourism Council of WA president Manny Papadoulis said although the two airlines had reached only 80 per cent of original capacity, they were carrying just as many people and capacity was likely to increase as the airlines increased the size of their fleet.
Travel agency firm Travel Design Professionals partner John Hughes said his corporate clients had not been affected by the collapse last year because his business, as part of the United Travel Agent group, used Qantas as the preferred airline.
However, he said that because the airline was now operating at full capacity, it caused some difficulties for business travellers.
“It is still fairly difficult to get people on flights that you want. If you wanted to go tomorrow it would be difficult to find a place,” Mr Hughes said.
“I know Qantas has put on extra flights and some smaller planes have been upgraded to larger planes.”
“Some airfares have conditions that you can’t change it or fly on a different day so they are no good for the corporate traveller.”
Flight Centre Limited corporate general manger Danny O’Brien said he expected travelling conditions to continue to be extremely tight for the next few weeks until after Easter when Qantas and Virgin Blue are expected to in-crease capacity further.
“From a state perspective, it (the Tesna withdrawal from Ansett) will be nothing like the original Ansett collapse.
“However, fairly quickly, in a fortnight or so, prices will be felt and that is
what the industry is very worried about,” Mr Papadoulis said.
“The average fares for the next six months will be a lot higher than in the past six months.”
Mr O’Brien said prices could jump by as much as 30 per cent in the next two weeks.
Mr Papadoulis said that could be devastating for the estimated 5,000 WA tourism businesses and other affected sectors of the economy such as retail and hospitality.
“If the air fares go through the roof then the industry really suffers,” he said.
The Tourism Council is so concerned with the future of the airline industry and its impact on the WA economy that a special conference is being held later this month looking at Aviation Policy in WA.
“The State and Federal Governments really now have to sit down and come up with a plan that provides WA and the rest of Australia with a cheap viable travel industry,” Mr Papadoulis said.
“We need to look at what systems need to be put in place to ensure that travel
is affordable, safe and effective.”
He said the industry was now at a critical stage. “It was 1990 that the industry was deregulated and it doesn’t seem to have really worked,” he said.
Chamber of Commerce and Industry of WA chief economist Nicky Cusworth said she was concerned that the Government may res-pond to the collapse by increasing regulation and removing competition.
“CCI’s main concern is that prices may rise in
the absence of real competition and that would add to business costs and affect consumer demand and tourism,” Ms Cusworth said.
“We hope the Governments respond in ways which encourage the re-emergence of genuine competition.”
