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Business class airfares at 20-year lows as Qantas Airways and Virgin Australia battle for domestic market

Leading Australian carriers Qantas Airways and Virgin Australia are currently engaged in a stiff battle to attract premium customers towards their side in a big way. Fares for booking business class seats to domestic destinations are at a 20-year low now.

According to a recently-released report by the government, the airlines are offering business class tickets at much cheaper rates in October this year. The report said that business class flights were booked almost a third cheaper than what was offered in 2003, which is considered to the base line for aviation statistics.

The report also revealed that the business class airfares offered in October this year was nearly 40 percent cheaper as compared to the same month in 2011. 

The Bureau of Infrastructure, Transport and Regional Economics index also revealed that business class fares were at their lowest level in July this year. The fares were 35.8 percent below the base line in 2003. According to reports, the fares were also the cheapest ever since the bureau started keeping the records in October 1992.