Why Are Canberra Flights So Expensive? Canberra Airport Explains

Mix 106.3’s Gabi spoke with Michael Thompson, Head of Aviation for The Canberra Airport Group, who settled the debate. 

 

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Episode Transcript

Speaker 1 (00:01):
Your podcast, camera wrapped, It's right and Gabby driving you home.
Over the last week, though, Beth, I was away. Rod
is obviously away for the moment as well. So you
were in here by yourself covering the show.

Speaker 2 (00:13):
Yeah, I took one for the team. I was solo,
you know, just doin it just Beth, just Beth.

Speaker 1 (00:18):
And when you're alone sometimes you go a little bit
rogue and there's no one to pull you back.

Speaker 2 (00:23):
Yes, I was going to do a conspiracy theory segment
and I was like, I don't think that this is
legal without a.

Speaker 1 (00:30):
Need someone else in the other seat to be the balance. Well,
there was some comments you made that we need to
clear up because we were talking. You were talking with
Tomorrow from the newsroom about the Canbra airport and this
is just what you said last week on air.

Speaker 2 (00:45):
You know, everything is more expensive in and out of
the Canbra airport.

Speaker 1 (00:48):
Do you know what, I'm going to go Sydney, But yes,
go on.

Speaker 2 (00:50):
Obviously the Snows own the airport. Yeah, they're able to
choose basically what that fee is in terms of every
single time a plane like lands or takes off, there's
a fee that they have to pay for the airport
and because it's privately owned, they're able to set that
fee and apparently it's more expensive than other airports. So
I've heard interesting.

Speaker 1 (01:12):
So those comments were not quite accurate. So we do
have Michael Thompson from the Camber Airport, he is actually
the head of aviation on the line with us right
now to clear things up.

Speaker 3 (01:21):
How are you, Michael, I'm very good and may I
say it's always good to go a little bit broke.

Speaker 2 (01:29):
Sometimes I do apologize, and Michael, I do need to explain.
I was told this by a flight attendant one time,
so look, I probably should have checked my.

Speaker 1 (01:38):
Facts a little bit sources. So Michael, can you explain
to us why this comment was not particularly factual and
what is actually going on at Cambra Airport.

Speaker 3 (01:50):
Yeah. Sure, So we have long term agreements with airlines,
usually sort of five plass years, which set the prices
for passengers in and out of the airport. So when
prices go up or prices go down for flights, it
doesn't make any difference to what revenues we get. All

(02:10):
that does is either increase or decrease revenues for the airlines,
and our fixed price is a very small component of
total airfare of prices and is very similar to what
other airports charge across Australia. The reason we see high
prices generally out of Canberra when we do is historically

(02:34):
we've been a business airport, so politicians, lobbyers, those sort
of organizations come through and as a result, the airlines
feel that they can charge slightly more.

Speaker 1 (02:48):
That's what I've always heard, because you know, politicians and
business people have to fly, so there's no need for
there to be a discount when it comes to the airline,
not as they know that these people are going to
fly no matter what, but if it was a tourist destination.
So that's why we see the Gold Coast always has
you know, deals on their flights because they want to
encourage tourism. So do we need to become more of

(03:09):
a tourist capital to get flights?

Speaker 2 (03:12):
I like that.

Speaker 3 (03:13):
Yeah, that's a great idea. It's certainly something that we've
been working on. So the start of jet Star was
probably sort of our most recent push into that. Up
until a couple of years ago, we didn't have jet
Star flying in and out of camera, and we've worked
really hard to encourage them to do that, and we
want them to do more because when you have a

(03:35):
carrier like Jetstar, it not only reduces flights prices on
their flights, it also leads to the other airlines dropping prices.

Speaker 1 (03:45):
As well of the competition. Yeah, that's the Jet start
to the Gold Coast just last week. So I'm doing
my part, you are.

Speaker 3 (03:53):
Indeed, And so we're always trying to find more routes
and more places for for people from Canberra to get away,
whether it's for a holiday or for business. And also
more airlines. So the more airlines that we have operating
here generally the lower the prices will become. So we're

(04:14):
conscious of it and we really want people to travel
and we also want people to be very proud of
the airport.

Speaker 2 (04:19):
Yeah, Michael, while we have you just quickly. You obviously
have a lot of pool in Canberra, are you? And
the snows You're very well respected in the community, which
is why I am asking you for a friend. Can
you please get a disney Land in Canberra, where the
capital of Australia, we don't have a Disneyland. Honestly, think
about how many tourists woud want to visit us.

Speaker 3 (04:39):
Then I think the idea is fantastic. I'm just not
quite sure I'm the right person for the thought.

Speaker 1 (04:48):
What you're not friends with the Disneys.

Speaker 3 (04:51):
Oh I'd love to say that where my mouth is regularly,
but I don't really get that.

Speaker 1 (04:56):
Gent Well, thank you so much for joining us, Michael,
and that up it was. It's a question that a
lot of can Baron's asking. Your explanation is a very
obvious one, so we appreciate your time.

Speaker 2 (05:08):
Oh good, Thank you, Michael, thank you your podcast camera
wrapped play