It's inevitable that regional airlines will cost more than inter-capital-city flights -- there's fewer people to serve so it's harder to achieve economies of scale. But not all those costs are under the control of airlines, which is why the ACCC is seeking public comment on a plan that could raise ticket prices for passengers flying to Sydney.
Picture by Simon Sees
Sydney Airport wants to raise changes for regional airlines (who largely use T2, the same terminal as Virgin Blue) by 2.9%, which apparently will equate to around $4.70 per aircraft movement -- a cost which will certainly be passed on. It's not a huge amount of money, but when you're routinely paying a couple of hundred dollars for a fairly brief flight, it's potentially an issue. Sydney Airport hasn't raised prices for regional services since 2001.
The ACCC is inviting public comment on the proposed increase; submissions are required by July 30. If the increase is approved, it will kick in from late October.