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How Come Cheap Flights are So Cheap?`


Posted June 29th, 2009 and last modified February 12th, 2010

How can Australian airlines (or any international airline) provide such cheap flights? The info graphic below explains how cheap flights are possible


Cheap plane tickets make it possible for Australians to travel interstate at a very low cost, and make air travel a super convenient and desired form of transport.


Since low-cost airlines like Jetstar and Virgin Blue entered the Australian air travel industry, there have been price wars that have driven the cost of a ticket down to the lowest levels we’ve seen yet.


The following info graphic is an analytical diagram of international air-lines and explains the processes that make cheap flights possible with a focus on productivity and it’s influence on ticket prices.


How come cheap flights are so cheap?


Top Travel Credit Cards*


Credit Card Card Details Interest Rate (p.a.) Cash Advance Rate (p.a.) Balance Transfer Rate (p.a.) Annual fee Interest free days (up to)





Qantas American Express Premium Credit Card
Qantas American Express Premium Card

Earn 1.25 Frequent Flyer points for every dollar spent. 2.25 for every dollar spent on associated Qantas Services. Travel insurance included.


Earn up to 7,500 FF points when you make your first purchase on your Qantas Premium card.

19.99% 19.99% N/A $249 44 Apply now for the Qantas Frequent Flyer Premium via the official American Express website.
Find out more about what the Qantas Premium has to offer.
Citibank Platinum Credit Card
Citibank Platinum Credit Card

1 Citibank Reward Point for every $1 spent on your card.


You can convert your Platinum reward points for Frequent Flyer points at a 1:1 ratio.


Also a popular and prestigious Platinum card offer.

19.99% 19.99% 4.90% balance transfer for life. $250 55 Apply now for the Citibank Platinum via the official Citibank website.
Find out more about what the Citibank Platinum has to offer.
Commonwealth Bank Gold Card
Commonwealth Bank Gold Card

$1 = 1 Commonwealth Award Point.

1.5 Commonwealth Award Points = 1 Frequent Flyer Point.

18.99% 19.99% 4.99% p.a. for 9 months. $114 55 Apply now for the Commonwealth Bank Gold via the official CBA website.
Find out more about what the Commonwealth Bank has to offer.
Commonwealth Bank Platinum Credit Card
Commonwealth Bank Platinum Card
$1 = 1 Frequent Flyer Point. A range of Commonwealth Bank travel insurance and luxury opportunities. 18.99% 19.99% 4.99% p.a. for 9 months. $200 55 Apply now for the Commonwealth Bank Platinum via the official CBA website.
Find out more about what the Commonwealth Bank has to offer.
ANZ Frequent Flyer American Express/Visa
ANZ Frequent Flyer American Express/Visa
Earn 1 Frequent Flyer point for every $1 spent on your American Express card, and 1 point for every $2 spent on your Visa.

Uncapped Frequent Flyer earnings. Both cards linked to same account with one annual fee, credit limit and statement.

18.99% 20.24% N/A $95 44  Apply Now For The ANZ Frequent Flyer American Express/Visa
Read More About The ANZ Frequent Flyer American Express/Visa
ANZ Frequent Flyer Gold American Express/Visa
ANZ Frequent Flyer Gold American Express/Visa
Earn 1.25 Frequent Flyer points for every $1 spent on your American Express card, and 1 point for every $2 spent on your Visa.

Uncapped Frequent Flyer earnings. Both cards linked to same account with one annual fee, credit limit and statement. $5000 Minimum credit limit.

18.99% 20.24% N/A $195 55  Apply Now For The ANZ Frequent Flyer Gold American Express/Visa
Read More About The ANZ Frequent Flyer Gold American Express/Visa
ANZ Frequent Flyer Platinum American Express/Visa
ANZ Frequent Flyer Platinum American Express/Visa
Earn 1.5 Frequent Flyer points for every $1 spent on your American Express card, and 1 point for every $2 spent on your Visa.

Uncapped Frequent Flyer earnings. Complimentary International travel & medical insurance. Both cards linked to same account with one annual fee, credit limit and statement. $12,000 Minimum credit limit.

18.99% 20.24% N/A $295.00 55  Apply Now For The ANZ Frequent Flyer Platinum American Express/Visa
Read More About The ANZ Frequent Flyer Platinum American Express/Visa
NAB Velocity Standard Card
NAB Velocity Standard Card
Gain velocity reward points and redeem for rewards.

You gain both an Amex and Visa card which are linked to one single account and annual fee.

19.49% 19.24% 3.99% for 6 months $65.00 44  Apply Now For The NAB Velocity Standard Card
Read More About The NAB Velocity Standard Card
NAB Velocity Gold Card
NAB Velocity Gold Card
Gain velocity reward points and redeem for rewards. 19.49% 19.24% 3.99% for 6 months $150 44  Apply Now For The NAB Velocity Gold Card
Read More About The NAB Velocity Gold Card
NAB Qantas Gold Card
NAB Qantas Gold Card
Comes with a Visa and American Express card, both linked to one account and annual fee. No point expiry. 19.49% 19.24% 6.99% for 6 months $145.50 44  Apply Now For The NAB Qantas Gold Card
Read More About The NAB Qantas Gold Card
NAB Qantas Platinum Card
NAB Qantas Platinum Card
Comes with a Visa and American Express card, both linked to one account and annual fee. No point expiry. No points cap. 19.49% 19.24% 6.99% for 6 months $290 44  Apply Now For The NAB Qantas Platinum Card
Read More About The NAB Qantas Platinum Card
Diners Club Frequent Flyer
Diners Club Frequent Flyer Charge Card

One Qantas Frequent Flyer point for every $1 you spend.

This is technically a ‘charge card’, you are required to repay your balance in full each month or face high fees and interest charges.


Diners Club has declined in popularity over the years due to limited acceptance by merchants.

N/A N/A $95 0 N/A N/A



Related posts:

  1. ANZ Frequent Flyer Credit Card – Earn 10,000 Bonus Frequent Flyer Points!
  2. Earn 10,000 Bonus Frequent Flyer Points With ANZ Frequent Flyer Credit Cards
  3. Best Frequent Flyer Credit Cards
  4. How To Pay For Your Next Holiday With Your Credit Card
  5. ANZ Frequent Flyer Rewards Programme
  6. Which Air Miles Credit Cards Operate Frequent Flyer Programmes?
  7. ANZ Frequent Flyer Bonus Qantas Freqent Flyer Points Offer



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Bankwest Balance Transfer Credit Card

Editor's Choice: Our Top Credit Cards


Credit Card Card Details Interest Rate (p.a.) Cash Advance Rate (p.a.) Balance Transfer Rate (p.a.)

Annual fee

Interest free days (up to)

St George  
Vertigo MasterCard Application
St George Vertigo
Editor's Choice:
Low Interest
Low 2.99% for 6 months (reverts to 11.99%) p.a. interest rate and balance transfer rate, from one of Australia's most respected banks.
2.99% for 6 months (reverts to 11.99%) 20.74% 2.99% for 6 months $55 55
Coles Group Source MasterCard
Coles Group Source MasterCard
The Coles Group Source MasterCard has no annual fee, a 0% p.a. balance transfer offer for 6 months, with a rewards program including savings on fuel and FlyBuys Points19.74%21.99%0% for 6 months$062 Apply Now For The Coles Group Source MasterCard
Read More About The Coles Group Source MasterCard
BankWest More Platinum MasterCard
Bankwest Zero Platinum MasterCard
Editor's Choice:
No Annual Fee
Excellent introductory offer with a $0 annual fee for the life of the credit card and a 1.99% p.a. for 9 months on balance transfers
16.99% 16.99% 1.99% for 9 months $0 55

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