Qantas under fire over $1,386 outback return flight as productivity inquiry looms

Brisbane-Longreach return costs more than a last-minute flight to Auckland, prompting accusations the airline is not 'fair dinkum' with regional travellers

By LineZotpaper
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A return flight from Brisbane to the Queensland outback town of Longreach can cost more than an interstate or overseas trip, a resident has discovered, as two separate reviews examine the affordability of regional airfares. John Elliott was 'staggered' to find a $1,386 return fare booked five days in advance — equivalent to a last-minute Qantas flight to Auckland and only $450 less than a budget flight to Singapore.

Mr Elliott, who has coordinated events in Winton, said expensive rural flights deterred both residents and potential tourists, adding that chartering an 80-seat jet could sometimes be cheaper than booking commercial flights. Qantas is the sole airline on the Longreach-Brisbane route.

The Queensland government already subsidises seven of more than 40 regional routes, covering 23 towns where demand is considered too low to be commercially viable. Maximum fares are capped on those regulated routes, with contracts held by Rex and Qantas reviewed every five years. The Department of Transport and Main Roads has delayed its decision by 12 months, saying it needs to 'consider all the feedback' from 37 consultation sessions.

A separate Australian Productivity Commission inquiry into the cost of regional airfares is under way, with a draft report due in November.

In its submission to the commission, Qantas said it used Dash 8-400 planes on smaller regional routes because they had lower maintenance and operating costs than the even smaller Q200 and Q300 aircraft. However, the carrier argued these services were not as profitable due to economy of scale.

'On average, these services are more than twice as expensive to operate than Qantas 737s and about three times more expensive than Jetstar and Qantas international services on a per-passenger basis,' the submission stated.

Mr Elliott said 'corporate Australia' was treating people in the bush 'with a lack of respect' and called on Qantas to prove that remote flights cost as much as the airline claims. 'I just don't think Qantas are being fair dinkum at the moment,' he said.

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Analysis

Why This Matters

  • Essential connectivity for outback residents and businesses is coming at a price that can exceed international travel, raising equity concerns.
  • Tourism and event organisers in western Queensland say high airfares deter visitors, impacting local economies that rely on drawcard attractions.
  • Two simultaneous reviews — the Queensland government's contract renegotiation and the Productivity Commission inquiry — could reshape regional airfare pricing and subsidy structures.

Background

Queensland subsidises airfares on seven regional routes where demand is too low for commercial viability, capping maximum fares on those regulated services. Contracts for these routes are held by Rex and Qantas and are normally reviewed every five years, but the current review has been delayed by 12 months for further consultation. Separately, the Australian Productivity Commission is conducting a national inquiry into the cost of regional airfares, with its draft report expected in November.

Key Perspectives

Regional travellers and event organisers: Residents like John Elliott argue that high fares effectively isolate outback communities and make it cheaper to charter planes than book commercially. They want greater transparency from airlines on operating costs. Qantas: The airline states it uses the most suitable aircraft (Dash 8-400) for smaller regional routes but that these services cost more than twice as much per passenger as its domestic 737 services and three times as much as international services, making profitability challenging without current pricing. Queensland Government and Productivity Commission: The state government is reviewing existing regulated route contracts after extensive community consultation. The Productivity Commission is due to release a draft report in November that may recommend policy changes to improve regional airfare affordability.

What to Watch

  • The Australian Productivity Commission's draft report on regional airfares due in November.
  • The Queensland government's decision on renewed contracts for regulated routes, now delayed to 2027.
  • Whether Qantas adjusts pricing on the unsubsidised Longreach-Brisbane route or faces further public and political pressure.

Sources

Zotpaper

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