State Border Openings Resuscitate Australian Domestic Air Travel
Australia’s domestic market is seeing some rapid changes in the latter part of 2020, breathing life back into the airline sector and boosting confidence that the industry’s outlook will be dramatically improved in 2021.
The factor that’s driving the Australian domestic market is of course the reopening of state borders, and there have been some major breakthroughs in this regard. As domestic borders open airlines are responding quickly by adding back routes and ramping up capacity, as well as reactivating more of their aircraft. Seeing the domestic market roar back to life comes as a welcome relief for both airlines and the Australian travel industry.
The picture remains clouded for the return of significant international services, as there is still no firm timeline for two-way travel corridors. But domestic operations should be enough to sustain Australia’s major players – and even a brash new entrant – while they wait for international borders to reopen.
Summary:
- Australian domestic capacity has accelerated dramatically from late Nov-2020
- Interstate trunk routes have once again climbed to the top of Australia’s rankings
- Qantas is reactivating more narrowbody aircraft – and some of its widebodies too
- Virgin Australia is also gradually rebuilding its domestic Boeing 737 fleet
- Virgin is unlikely to return to long-haul flying in the next 18-24 months, CEO says
- Australian domestic market is the only battlefield now, but that will change next year