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It’s an Australian capital city where an interstate return trip can cost upwards of $1,500 and flights to other capitals regularly depart in the middle of the night.
Exorbitant fares, poor flight times and frequent unexpected scheduling changes have become the standard in the Northern Territory capital of Darwin, with few signs of change on the horizon.
But despite ongoing accusations of flight price gouging by major airlines Qantas and Virgin, airfares to the NT may be about to climb even higher, as Darwin Airport's boss refuses to rule out hiking up its airline fees.
Darwin hostel manager Debbie Turner said her business had been forced to shut seven hostels in the city in recent years due to a downturn in tourism, which she blamed chiefly on prohibitive flight costs.
“We’re definitely being gouged,” she said.
Debbie Turner says expensive flights are discouraging tourists from visiting Darwin. (ABC News: Mike Donnelly)
“I don’t think we even exist with a lot of the airlines – I think we’re very much an afterthought.
“They abandoned us years ago.”
Stateline NT put the call out to territory residents on social media for their stories of flight price gouging.
Many reported paying thousands just to travel interstate, even when booking six months out.
NT federal MP Luke Gosling said the social licences of both major airlines and the airport were “reasonably poor because of the prices Territorians are having to pay”.
Luke Gosling says Territorians are fed up with high flight costs. (ABC News: Dane Hirst)
“Territorians definitely feel like they’re being ripped off,” he said.
Over the years, airlines have consistently blamed their sky-high prices for flights on the NT’s low population, remoteness and tourism seasonality.
Qantas claimed in a statement that these factors have meant average airfares to the NT capital are “comparatively higher” than other cities.
“This also makes scheduling challenging,” the spokesperson said.
But behind the scenes, there are also accusations that plans by Darwin’s Airport Development Group (ADG) to substantially raise its fees to airlines are contributing to the situation.
Darwin Airport has undergone major infrastructure works in recent months. (ABC News: Michael Franchi)
Virgin Australia blames airport fees
Qantas and Virgin Australia declined to take part in interviews, but in statements, both suggested that they “always try to offer great value” on prices.
Virgin Australia claimed the fees ADG was charging airlines to land at Darwin Airport were a key factor in flight pricing.
“Darwin Airport’s plans to double passenger charges over the next three years will continue to put pressure on airfares and will not incentivise airlines to grow services to Darwin,” a Virgin spokesperson said.
“While we are laser-focused on delivering the best possible value … it is increasingly difficult to prevent the high cost of operating at Darwin Airport from being felt by travellers.”
Virgin Australia says Darwin Airport's airline fees are contributing to high prices. (ABC News: Christopher Gillette)
The airline took aim at the ADG’s “capital spend”, which has included recent major runway works, as well as upgrades to the airport’s terminal.
“We expect the airport to be operated in an efficient and cost-effective manner and that the level of capital spend is appropriate and optimised to customer demand,” the Virgin spokesperson said.
The ADG is majority-owned by Melbourne-based industry superannuation manager IFM Investors, and has only one person from the NT on its board of seven.
Mr Gosling said the ADG’s airport landing fees were among the highest in Australia.
"Being a super fund, they want to drive maximum profits for the members,” he said.
ADG executive general manager Rob Porter denied its fees were pushing up airfares.
Rob Porter claims Darwin Airport's fees are not impacting flight costs. (ABC News: Michael Franchi)
“I don’t see our charges having any impact on the prices that are being charged,” he said.
“In some instances, the cost of doing business up here, and the reasons for travel, I could make it free on some occasions, and [the airlines] still wouldn't come."
Mr Porter defended the ADG’s plan to increase fees, saying they were needed to help pay for costly runway and infrastructure upgrades.
“There’s a level of acceptance from airlines that that’s the cost of flying to the NT,” he said.
Aviation analyst Bruce Dale said, “any cost like that will get passed onto the consumer”.
Bruce Dale says consumers will be hit by increased fees. (ABC News: Mike Donnelly)
'All options on the table'
Both the NT and federal governments claimed they are working on solutions to high airfares.
NT Chief Minister Lia Finocchiaro said a priority of her government was “sitting down with both Qantas and Virgin to outline our expectations of flight prices and availability”.
Lia Finocchiaro says her government is working on solutions. (Four Corners)
She also said the NT government was open to exploring the prospect of cabotage – the concept of further opening up domestic Australian routes to international carriers.
“We’re currently exploring all options on the table for flights in and out of the NT,” she said.
Mr Gosling said the federal government was also looking into possible solutions, including “calling out anti-competitive behaviour” by the airlines and possibly trialling cabotage in the territory.