Emirates has announced it will be flying a third A380 into Sydney daily from November but warns it will likely not result in cheaper airfares.
The United Arab Emirates’ flag carrier currently operates two A380s in Sydney each day, and two A380s in Melbourne alongside a Boeing 777.
Capacity is only a “small part of airfares”, the airline claimed, with higher prices for fuel, workers and catering all contributing to higher ticket prices.
“Once you start layering on all these additional costs, while it may seem airfares are high, it’s not solely because of capacity – it’s all these compounding costs hitting us from all areas,” said Emirates Australasia vice-president Barry Brown.
“In spite of these challenges, we’re committed to strengthening our schedules as much as we can and offering the essential connectivity that Australian travellers have come to know and expect of us.”
The comments from Mr Brown appeared to be in response to claims that the Qatar Airways bid for 21 extra flights in Australia would have brought down airfares by as much as 40 per cent.
Virgin boss Jayne Hrdlicka said the additional Qatar flights would have an “immediate and tangible effect in reducing airfares between Australia and Europe, the Middle East and Africa.”
The tourism and travel industries have welcomed the additional capacity, but many have noted Australia still lacks competition on European routes.
“That’s why the industry is so vocal around this point of approving additional capacity from a carrier like Qatar, because when they go into markets they introduce competitive fares,” said Experience Co CEO John O’Sullivan.
“That’s why the approval of those flights has become such an issue.”
Emirates is a direct competitor of Qatar and is wholly owned by the government of Dubai through the Emirates Group.
Qatar Airways is also wholly owned and backed by the Qatari government.
Emirates operates a codeshare agreement with Qantas, a partnership that commands a 43 per cent share of the Middle East and Europe routes in Australia.
(SKY NEWS)
