Airfare probe loses steam

Only two submissions from the Kimberley have been made to yet another government inquiry into regional airfares as the heat goes out of the push for lower prices in Broome.

The Shire of Broome and Broome International Airport have pitched similar cases to the Federal Government as they did to the preceding State Government probe last year.

Interest in the matter has diminished since Qantas and Virgin increased seat allocations into and out of the town for traffic servicing the offshore oil and gas fields in the Browse Basin, about 470km from Broome.

Broome Chamber of Commerce and Industry chairman Peter Taylor believes the availability of additional seats was leading to cheaper fares.

“Given the focus on the high airfares in regional WA, and particularly Broome, it appears the airlines have responded by increasing capacity into and out of Broome, which is probably linked to demand from the oil and gas industry,” he said.

The wet season has also played a part in keeping prices at bay with return Broome-to-Perth fares pre-booked within five weeks averaging about $434 in January.

Research by Broome Advertiser shows there has been no real difference in prices between the two destinations in the past 10 years, although there was a spike from June to September last year when return Broome-to-Perth seats booked a week prior peaked at almost $1000. There were noticeable differences in price when less time before booking was given and there was an upward trend in prices in the high tourist season.

During the State Government regional airfare inquiry, Qantas offered people living in regional WA price reductions of up to 30 per cent, provided they joined its frequent flyer program and a string of other conditions.

But the scheme has come in for some criticism because reductions do not include sale fares and were restricted to just 10 per cent on the most popular and cheapest Red e-Deals. The discounts went up to 30 per cent for more expensive fares, including fully flexible.

In its submission, the Shire said airline pricing had a significant social and economic impact on Broome and did not assist in promoting the town as an affordable tourist destination.

The Shire welcomed any Federal Government assistance and said greater transparency from airlines was needed when setting fares.

BIA chief executive Paul McSweeney said the airport welcomed the opportunity to provide a submission to the inquiry and looked forward to receiving a copy of the final report.