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Virgin Australia vs Rex: Price War Heats Up on Perth-Melbourne Route

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Immanuel Debeer | 21/06/2024

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The competitive landscape of the Australian aviation market is heating up, with Virgin Australia and newcomer Rex (Regional Express) engaging in a fierce price war on the Perth to Melbourne route. Both airlines are offering remarkably low $97 airfares, sparking significant interest among travellers.

Background on the Players

Virgin Australia

Virgin Australia, a well-established player in the Australian aviation market, has a reputation for reliable service and competitive pricing. Known for its extensive domestic and international network, Virgin Australia is a favourite among many Australian travellers thanks to its fantastic Velocity Frequent Flyer program.

To find the lowest Virgin Australia fares on this route, click here.

Rex (Regional Express)

Rex, traditionally a regional airline, is making bold moves into the domestic market with its entry into major city routes. The airline is known for its efficient service on regional routes and is now aiming to capture a share of the lucrative domestic travel market. With the recent launch of its own loyalty program dubbed “Rex Flyer“, Rex is looking to win hearts with low fares and a new way to earn points.

Details of the Price War

Specifics of the $97 Fares

Both Virgin Australia and Rex are offering $97 one-way fares on the Perth to Melbourne route. These fares are available for select flights and dates, providing an affordable travel option for budget-conscious travellers.

Route Details

The Perth to Melbourne route is a major domestic corridor, and the introduction of these low fares is expected to drive significant competition. Virgin Australia and Rex are offering these fares with some conditions and limitations, including specific travel periods and availability.

Conditions and Limitations

The $97 fares come with certain restrictions, such as limited availability and specific travel dates. Travelers need to act quickly to secure these deals as seats at this price point are likely to sell out fast.

Will Qantas & Jetstar join the battle?

As one of the major players in the Australian aviation market, Qantas may feel the pressure to respond to this price war. While Qantas has not yet matched these low fares, it remains to be seen if they will introduce competitive pricing to maintain their market share. Jetstar, Qantas’ low-cost subsidiary, is known for its budget-friendly fares. It is possible that Jetstar will join the fray and offer similarly low prices to attract cost-conscious flyers and stay competitive.

Conclusion

The price war between Virgin Australia and Rex on the Perth to Melbourne route offers exciting opportunities for travellers but also poses challenges for the airlines. For consumers, this price war is a boon, offering unprecedented low fares on a major domestic route. However, travellers should be aware of potential drawbacks, such as limited availability and the need to book quickly. Additionally, low fares often come with stricter cancellation and change policies.

The sustainability of these ultra-low fares is questionable. While they attract travellers and boost short-term sales, maintaining such low prices long-term could impact profitability for the airlines involved. This price war could signal a shift in the Australian aviation market, leading to more competitive pricing and increased options for travellers.

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Immanuel Debeer

Chief points nerd and travel hacker at Flight Hacks

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