From the CEO
Not many products get better as they get cheaper.
Years ago, I bought a top-of-theline laptop that cost me about $5000. By today’s standards, it would be an absolute brick. My current laptop runs rings around it and cost about $2000.
Airfares in Australia have been on a similar trajectory. Fifteen years ago, a flight from Sydney to Melbourne cost around $400. Back then, you stood in a queue to check in, brought a good book for entertainment and knew you’d be out of contact for the entire flight.
These days, the average entry cost for the same flight is about $160. You can check in via an app before you even get to the airport and stream TV and movies on your phone or tablet while on board. From next year, you’ll have free, fast wi-fi inflight.
That’s an amazing change. The main reason it’s happened is that airlines have found more efficient ways of doing things. And we’ve continued investing – particularly in technology, which is a huge driver of efficiency and also gives customers a better experience.
Those investments can be as small as the chip in your Frequent Flyer card or as big as the Boeing 787 Dreamliner. Or behind-thescenes investments such as a new scheduling system that helps us bounce back faster from weather-related delays.
There’s no doubt that more affordable air travel is helping drive a surge in Aussie tourism. So is the lower Australian dollar, which is making a trip here much cheaper for overseas visitors. Tasmania is featured in this issue and it’s a good example of a region that’s making the most of this opportunity and marketing itself to the world.
You often hear about the Australian economy transitioning out of a mining boom. Tourism is a really important bright spot in that process, keeping in mind that it’s one of our biggest exports.
A final point on affordable travel. In August, the aviation community was saddened to hear that Joe Sutter had died at the age of 95. Widely recognised as the “father of the 747”, he led the engineering team at Boeing that created the aircraft that changed the economics of the industry with its size and efficiency. The jumbo made flying possible for millions of people through lower fares, including here in Australia; at one stage, when Qantas was purely an international airline, we had an all-747 fleet.
By finding new ways of using technology to lower prices and improve the experience for travellers, airlines are carrying on the legacy of pioneers like Joe – and the next innovation is never far away.