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Business class fares in Australia drop by 25 percent

An unprecedented airfares war has been unleashed in Australia leading to a sharp decline in the business class airfares in the country.

Media reports quoted John Borghetti, Chief Executive of Virgin Australia, as saying that the airline price war has led to a 25 percent drop in business class airfares in Australia. He also said that the ongoing war might see a further drop in the future as well.

Borghetti said that Virgin Australia is currently into a stiff competition with Qantas Airways to grab a large chunk of domestic corporate travel market.

He said that Qantas Airways is planning to target business class flyers of Qantas Airways and aims to make a big dent capturing at least 20 percent of the Australian corporate travel market.

Borghetti said that prices of business class flights had remained unusually high, while Economy Class airfares dropped sharply by more than half in the last decade. He, however, refused to say whether reduced business class airfares will help company to remain profitable.