Ansett raises economy airfares

Airline Industry Information, August 29, 2001

AIRLINE INDUSTRY INFORMATION-(C)1997-2001 M2 COMMUNICATIONS LTD

Ansett, an Air New Zealand-owned carrier operating in Australia, announced on 29 August that it would be raising its economy class fares by 6%, effective immediately.

Aviation industry observers have said that the increase signifies that a price war in the Australian domestic market is on the way out, although three domestic carriers are currently still offering discount fares via the Internet, according to the Sydney Morning Herald. A spokesperson for Ansett stated, "The increase is in line with industry-wide increases to discount fares over the past couple of months. It also reflects current trading conditions."

Other carriers, including Qantas Airways, are expected to follow Ansett's move, although Virgin Blue has stated that it has no plans to increase its fares at this stage.

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