Cheaper air fares ahead as competition ramps up between airlines

Flights between Sydney, Melbourne and Brisbane are set to become cheaper as a price war erupts between the airlines.

That’s the prediction of Virgin Australia’s new boss Jayne Hrdlicka, who says “it will have never have been cheaper to travel in this country”.

Hrdlicka said a move into the routes between the east coast’s three capital cities by regional airline Rex would result in lower fares.

“But I think they should expect it’s going to be super competitive because we’re all rebuilding the market,” she said.

“Prices will be very sharp for a long time to ensure that everyone re-settles in the marketplace in the way they intend.”

Rex will service the Sydney/Melbourne route with three Boeing 737s in March before adding Brisbane to its network.

But Hrdlicka said that Virgin would not give up the profitable route without a fight and “has no intent of backing off that market share”.