The majority of Australians have been reaping the rewards of cheaper fuel over the last few months. Last week I filled up my car with fuel that cost just 107 cents per litre! I was shocked – the last time it was that low had to be over a decade ago. While we enjoy the cheap fuel now we need to ask, when will the rest of our products and services get cheaper as a result?
If you say never, because the major corporations won’t do it, I’ll tell you to stop being so cynical. The Daily Mail has revealed that Virgin Australia has lowered fares slightly to account for the fuel price reduction – actually passing the saving onto the customer.
They have cut prices on flights from Australia to Los Angeles by $40 for economy fares and $50 for business class. Virgin Atlantic made a $5 reduction to their fuel surcharge in December and the hope is that this will bring the cost of air travel down significantly across the board.
A spokesperson for Virgin said today, “Over the past 10 years, despite oil prices reaching some historic highs, domestic airfares in Australia have gone down more than 20 per cent, driven by strong competition in the market.”
If you’ve been following the Qantas journey, you will know it hasn’t been an easy market for the big organisations. The competition driven by so many airlines competing for the consumer dollars has made air travel affordable and it is really nice to know that although prices are significantly reduced compared to five or ten years ago, the airlines still want customer loyalty and are leading by example.
There is no word about whether the other airlines will follow suit but we will keep you posted!
Tell us, when you fly, who do you choose to fly with?