Airfares governed by the $US????

[Danni]

I was just talking to Qantas about availability of an extra seat on the flights I am taking this week and how much it would cost.

The lady gave me a price - and told me that when I ring back it may be different. I asked why and she said "the fares change as they are governed by the fluctuation of the $A against the $US"


HUH???? Why? If I am flying with an Australian airline, on a domestic/within Australia route, why are the fares governed by the US dollar?

Anyone know?

[TigerCraig]

Air fuel is puchased in USD.

Also, most aicraft are not owned by the airlines, they are leased. The leases are normally denominated in USD, so when the exchange rates change, the AUD value of the repayments rises.

Of course it is rare that prices are reduced when the dollar goes the other way.