New Fare Restructure Frequently Asked Questions

General

Why is Qantas changing the fare structure and what are the benefits?
We are introducing a fare structure, which will provide:

Simplicity - offering a more user-friendly and easy to understand range of fares, with many features in common with other Qantas New Tariffs
Flexibility – The ability to create a greater selection of pricing options by combining half-return fares

When will the new fares be introduced?
The new fares are for sale from July 15, 2005 and travel from August 01, 2005.

What will happen to the current/old fare structure?
The previous fare structure will still be saleable and ticketable until August 31, 2005.

How are the new fares structured?
There are 3 year-round fare families, each of which has its own set of conditions.
The groups are:
  • Red Tail - low range fares with more restrictive conditions
  • Super Saver - mid-range fares with less restrictive conditions
  • Flexi Saver - flexible fares, giving our customers the most flexibility for their travel

All fares are available in GDS systems and via the Internet at qantas.com/us.

How will combinations work?
All core fares will be round-trips but one-way fares will also be available in Super Saver and Flexi Saver fare families at 60% of the round-trip. All economy fares are combinable on a half round trip basis with all other economy fares, with the conditions of the most restrictive fare being applicable. Booking classes can be combined across fare families, ie one class in one direction and a different class in the other direction.
Example: LAX QF SYD (V-class, Red Tail) QF LAX (H-class, Flexi Saver)

Do the changes mean lower fares?
The new fare structure will see a mixture of decreases and increases in the standard fares that Qantas offers, depending on the market and booking class. More importantly, it will offer a greater number of combination fares than are available today, at many more new price levels and with much more flexibility to find the right level for the customer’s needs.

Will Qantas still offer net fares?
We will retain some specialised net fares for selected accounts, although most net deals will continue to be based on a percentage discount off the published fare.

Will commission levels change for the agent?
Qantas recognises the importance of maintaining commissions for the agent. There is no change to standard commission levels, although there may be some adjustments to some deals over coming weeks.

Are there any changes to child, infant, or unaccompanied minor fares from the current arrangements?
Child fares will continue to be 75% of the adult fare and infants 10% of the applicable adult fare. Unaccompanied minors are at the adult level, and can only be offered to children aged 6-11 years of age.

Will there be any change to Group, Wholesale, Corporate or Student fares?
Competitive group fares will continue to be available through Qantas Groups. Wholesale, Corporate and Student fares will continue to be available, although there may be some adjustments to some net deals over coming weeks.

Are all codeshare services permitted?
Yes. All codeshare services are permitted.

Are domestic transfers permitted for the Red Tail and Super Saver within the specific routings?
Yes, within the transfer provision of the fare rules.

Are add-ons permitted in combination with the new fares?
Yes, USA, New Zealand and Australian add-ons will apply. Brisbane and Melbourne are USD 100rt above Sydney levels, while Cairns is USD 170rt and Perth is USD 350rt above Sydney levels. All other add-ons are as per current standards. The fares can also be combined with fares to points beyond Australia.

Are there any new fare classes not currently being used?
The Red Tail fare classes of V and R have not previously been used for year-round fares and in many cases provide fare levels lower than current advance purchase fares.

What do I do if I cannot find R class on American Airlines domestic services for add-ons?
While R is in the sale hierarchy for Qantas flights (both QF-operated and code share), American Airlines may not have R included in their inventory on all domestic services. Where R is not available on AA, book L class.

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Changes

Which fares can be changed without any additional charge?
Flexi Saver fares may be changed at any time before or after departure of a flight without charge, subject to availability (local service fees may apply). Super Saver fares may be changed for a charge of USD 100 and Red Tail fares may be changed for a charge of USD 150 (local service fees may apply on all fare families).

If a ticket was purchased prior to the new fare structure sale date of 14 July 05 and changes are requested after 15 July 05, which conditions apply?
The fare rules are those which applied to the ticketed fare at the date of purchase. Current fares will remain in the system until 31 August 2005.

Can changes be made on the day of departure?
Flexi Saver fare families can be changed on the day of departure free of charge. Other fare families can also be changed on the day of departure, although charges will apply (same levels as before/after departure). Local service fees may apply on all fare families.

What are the new cancellation and no-show fees?
The New Tariff structure has simplified the cancellation requirements. There will be a fee charged for the cancellation of Red Tails (fare value less USD 500), Super Saver (fare value less USD 300) fares and Flexi Saver fares (fare value less USD 100). After departure from origin, Flexi Saver fares can be refunded for the unused fare value less USD 500, while other economy fare families are non-refundable.

All fares may be exchanged. The residual (unused) value, less a servicing fee (USD 150 for Red Tails and USD 100 for Super Saver fares) may be used towards the purchase of any new ticket provided that the value of the new ticket is of equal, or greater, value to the value being exchanged.

As the cost of no-shows is high, if a customer does not board a flight and has not advised the airline they will incur a penalty. Fees are unused fare value less USD 700 for Red Tail, USD 500 for Super Saver and USD 300 for Flexi Saver fares.

In the case of cancellation, exchange or a no-show, customers can have their ticket exchanged where the unused value of the ticket may be used towards payment of a ticket of an equal or higher value, less a servicing fee of USD 150 for Red Tail and USD 100 for Super Saver fares.

If a journey, or part of a journey, is cancelled can the remaining value of the ticket be used towards payment of another fare?

The unused value of the ticket may be used towards payment of a ticket of an equal or higher value, less a servicing fee of USD 150 for Red Tail and USD 100 for Super Saver fares. No fee applies to Flexi Saver fares, although local service fees may apply on all fare families. Any additional airfare must be paid at the time of re-ticketing.


If an International ticket was purchased on qantas.com, can it be changed online?
International tickets purchased on qantas.com can only be changed by contacting Qantas Telephone Sales, or over the counter at a Qantas Travel location. Changes are permitted on all year round fare families prior to departure, at a charge, however these are subject to availability and it may be necessary to upgrade to a higher fare if the original booking classes are no longer available.

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Combinations

If one fare type is combined with another fare type, which fare conditions apply?
For certain fares, the fare quote will apply the most restrictive conditions of the fare family to the entire ticket. This is not the case for all conditions on the ticket. In the new fare structure the most restrictive conditions will apply to:
  • Advance Reservation and ticketing (TTL)
  • Stopovers
  • Combinations
  • Sales Restrictions
  • Penalties (Refunds/Cancellation)


Will all the other fare conditions be applied under the individual fare types used on each part of the journey?
Yes. The other fare conditions will be considered individually by the fare quote system, and may be applied individually to each section of the journey.

What about refunds?
The most restrictive fare family conditions on the journey will apply. If there is a Super Saver refund fee of USD300 for one half-journey on the ticket and a Red Tail USD500 for the other half-journey, the refund fee for the entire ticket is USD500 as the Red Tail is more restrictive than the Super Saver fare family.

Are children’s fares affected by the most restrictive condition requirement?
Children’s fares are considered individually in the fare construction – the discount is applied according to each fare component.

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Frequent Flyer

Does the new structure affect Frequent Flyer points?
At this stage, Flexi Saver, Super Saver and Red Tail fare families are eligible to earn Frequent Flyer points, although the number of points earned may vary.

Can Frequent Flyer points be used to pay for airfare differentials?
No. Payment can only be made by cash/cheque/credit card.

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Seasons

Have there been any changes to seasonality?
Yes, Qantas has reduced the number of seasons applicable to Australia and New Zealand from current four. Fares to Australia have three seasons. Seasons to New Zealand are in line with Australian seasonality, although low and shoulder seasons to that market are common-rated for Red Tail fares. Seasons have also been adjusted to be more in line with customer demand and, where possible, with the end/start of months.

Revised seasonality is as follows:
Low Season: May 01-Jun 08, Jul 24-Sep 21
Shoulder Season: Feb 01-Apr 30, Jun 09-Jul 23, Sep 22-Dec 08
High Season: Dec 09-Jan 31
Peak Season: No longer applicable

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Weekend Surcharges

Are weekend surcharges still included in the new fare structure?
No. Weekend surcharges have been removed from the new structure to aid in the simplification process.

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Stopovers

How many stopovers are permitted in the new fare structure?
It varies by fare family. Flexi Saver fares permit four stopovers free of charge. Super Saver fares permit four stops, two free of charge, and two at a charge of USD 150 each. Red Tail fares permit two stopovers, one free of charge, and one at a charge of USD 150. Where a stop includes NAN, charges are USD 100 for southbound stops and USD 200 for northbound stops.

Do stopovers include the point of turnaround?
Permitted stopovers are in addition to the point of turnaround.

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Minimum / Maximum Stays

Are there any changes to minimum / maximum stay requirements?
Yes, this has been adjusted to provide more simplified options for customers. Minimum stay is not applicable on Super Saver or Flexi Saver and is 5 days after international departure for Red Tail fares.

Maximum stay conditions have been removed on all fare types, with a maximum of 12 months permitted on all fare families.

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Ticketing Time Limits / Advance Purchase Conditions

Are fares still subject to advance purchase conditions?
No, although ticketing time limits will apply.

What are the ticketing time limit conditions?
Flexi Saver fares require ticketing within one month of booking or no later than 7 days before departure or, if less than 7 days before departure, then no later than 3 days after booking. Super Saver fares require ticketing within 14 days of booking or no later than 10 days before departure or, if less than 10 days before departure, then no later than 3 days after booking. Red Tail fares require ticketing within 7 days of booking or no later than 14 days before departure or, if less than 14 days before departure, then no later than 3 days after booking.

Why is Qantas applying more structured Ticket Time Limits to the new fare package?
No-shows and last minute cancellations are a problem for all airlines as is the holding of multiple bookings with different agents. There is a risk that a customer will not cancel their seat in time for someone else to use it, and it will go empty. At departure it is often not possible to re-sell seats that have been cancelled at late notice.

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Qantas Airways Ltd. (USA) (71b)