G'Day travelers, air fares to Down Under are on their way down.
Travel between Sydney, Australia, and Los Angeles, considered one of the more popular but most expensive routes in the world, may be soon be getting more competitive for airlines and cheaper for passengers.
After a decade of wrangling, Australian and U.S. negotiators agreed to a landmark aviation pact to open their skies to each other's airlines, and Los Angeles International Airport may become the big winner. It is the nation's busiest hub for flights to and from Australia.
The deal, which must be ratified by both governments, would open the route to more airlines, including a fare-slashing carrier started by British billionaire Richard Branson.
Some analysts predicted that fares, currently hovering at $1,500 for the cheapest round-trip coach ticket between Los Angeles and Sydney could fall below $1,000 -- in line with other international flights of similar distances.
Corporate travelers buying business-class tickets for as much as $18,000 could see fares fall even further, perhaps by as much as several thousand dollars.
"It's great news for consumers and the travel industry," said Diane Embree, a travel consultant for Michael's Travel Centre in Westlake Village. "A lot of people want to go to Australia, but because there is limited competition airlines have been able to charge whatever they want."
LAX is expected to be a major beneficiary of the Open Skies Agreement, which was hammered out over three days in Washington.
The agreement "begins a new era where American and Australian consumers, airlines and economies can enjoy the benefits of lower fares and more convenient service," U.S. Transportation Secretary Mary E. Peters said.
In an unusual duopoly, only two airlines have been allowed to offer nonstop flights between the two countries. And because of the demand for travel between the two countries, Australia's Qantas Airways Ltd. is now the largest foreign-based carrier at LAX, operating three flights a day with 747 jumbo jets that often have full passenger loads.
Last year, it flew more than 1.2 million passengers between LAX and Australia, now considered one of the most profitable routes in the world. While the U.S.-Australia flights account for only a fraction of overall operations, they generated about 15% of the airline's profit.
