Asia Times: Airlines drop Sydney Games bombshell



	May 01, 1999	atimes.com

Oceania

Airlines drop Sydney Games bombshell

CAIRNS, Queensland - Australia's two majorairlines are considering a seven-month halt on discountsfor domestic airfares next year to maximize their profits inthe lead-up to and during the 2000 Olympics.

Tourism industry leaders said Friday the pre-Olympic plan was revealed at a private''industry leaders'' forum at the Inbound Tourism Organizationof Australia (ITOA) annual conference in Cairns.

Only about 20 people attended the invitation-only meetingof senior executives of the airline, hotel, accommodation andtourism industries.One attendee, who declined to be named, said he wasshocked when Qantas and Ansett executives dropped the bombshell.

He said that under the proposal neither airline would offerdiscounts on domestic routes from March 1 next year until theend of the Sydney 2000 Olympics in October.Full economy airfares are rarely paid by people flyingdomestic routes because of the range of discounts offered byairlines, including advance purchase discounts.

Canberra Tourism and Events Corporation chief executiveDavid Marshall confirmed to a business briefing session at theITOA conference Friday that the discount airfare blackout wasunder consideration.''We've already heard at the conference that airfares mightrise domestically, possibly from the first of March next year,but certainly from the first of September through to the 10thof October, where only full economy airfares will beavailable,'' he said.

Australian Tourist Commission (ATC) managing director JohnMorse refused to comment.Morse confirmed he had attended the industry leadersmeeting, but said the discussions at the meeting were private.

ATC chairman Don Morris told AAP that domestic air travel madeup about 70 percent of the profits of the Australianairlines, and international routes only about 30 percent.

An Ansett Australia spokeswoman said the airline had madeno announcement about a fare discount halt.The spokeswoman said the airline's usual fare structurewould be in place before, during and after the Olympics, butdiscount seats would be limited on flights in and out of Sydney.Qantas was not immediately available for comment.

(Asia Pulse)