It's Cheaper To Fly Than Drive, Says Perplexed Exec
Sydney Morning Herald
Saturday February 16, 2008
CHEAP airfares are partly to blame for the dramatic slide in large car sales, a car industry executive claims.
Peugeot Australia boss Rob Dommerson says low-cost travel has eroded the appeal of the big car for a big country."With Virgin in the market, the air fares have become so cheap a lot of families are flying to their holidays. The old idea of loading the family into the Commodore or Falcon and heading for the Gold Coast doesn't have the appeal it once had, especially with the cost of fuel," he says.Dommerson says many families are hiring a small-car once they get to their destination, rather than driving all the way.As airlines battle for customers with $1 gimmick fares, the cost of filling a Commodore's tank has risen to roughly $100 - more than some budget airfares between major capital cities. A quick check by Drive this week found numerous air fares between the eastern capitals priced between $49 and $89.The slide in sales of large cars claimed its first victim last week when Mitsubishi announced it would no longer manufacture the 380 sedan in Australia.A decade ago large cars made up roughly a third of the total passenger car market. Last year they accounted for less than 14 per cent, despite the introduction of a new model Commodore and the launch of the Toyota Aurion in late 2006.Last month the Ford Falcon recorded its lowest monthly sales on record and large cars made up less than 9 per cent of the market.Apart from high fuel prices, locally built large cars have also been hit by cuts in import tariffs and a strong Australian dollar making imported cars more attractive.
© 2008 Sydney Morning Herald
