Alliance airlines landed in Bundaberg for the first time on Monday July 17, 2017.
Alliance airlines landed in Bundaberg for the first time on Monday July 17, 2017. Craig Warhurst

Airline reveals why regional flights are so expensive

AN AIRLINE that claimed to have "regional Australia in its DNA" has admitted it prices flights to "maximise" profits and ups prices around events like grand finals.

But Alliance Airlines managing director Scott McMillan blamed high per-passenger fees that regional airports charged as a cause for the high prices passengers were charged throughout the year.

In Brisbane yesterday, Mr McMillan told a Federal Senate inquiry, the company's "nirvana" was flights for the NRL grand final between the Brisbane Broncos and North Queensland Cowboys, and an AFL grand final between West Coast Eagles and Fremantle Dockers.

The Senate committee is examining ticketing prices for flights in regional Australia.

South Australian Centre Alliance senator Rex Patrick asked Mr McMillan if the company, which flies out of Bundaberg, approached "ticket pricing to maximise how much you earn".

Mr McMillan said that was a "fair" summary of their pricing strategy.

Similarly, Virgin Australia revenue general manager Russell Shaw told Senator Patrick the company tried to "maximise the revenue" on every flight.

NewsRegional



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