How Come Cheap Flights are So Cheap?`
Posted June 29th, 2009
and last modified June 4th, 2010
Featured Flight Rewards Credit Card
The ANZ Frequent Flyer credit card allows you to earn unlimited Qantas Frequent Flyer points so you can reach your desired destination in no time. This card features 2 cards on the one account with a high earn rate of rewards points on both. Also if you apply by 31st July 2010 you receive 10,000 bonus Qantas Frequent Flyer points
- $95 annual fee
- 19.49% p.a. on purchases
- 2.9% p.a. for 12 months on balance transfers
- Cash Advance Rate of 20.74%
- Uncapped Qantas Frequent Flyer points1 earning
Click here to read the ANZ Frequent Flyer – Balance Transfer Option terms and conditions
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.
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 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 |   |
 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 | |
 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 | |
 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 | |
 ANZ Frequent Flyer – Balance Transfer Option |
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. |
19.49% | 20.74% | 2.9% for 12 months | $95 | 44 | |
 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. |
19.49% | 20.74% | $195 | 55 | |
|
 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. |
19.49% | 20.74% | $295.00 | 55 | |
|
 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. |
19.99% | 19.99% | 4.99% for 6 months | $65.00 | 44 | |
 NAB Velocity Gold Card |
Gain velocity reward points and redeem for rewards. | 19.99% | 19.99% | 4.99% for 6 months | $150 | 44 | |
 NAB Qantas Gold Card |
Comes with a Visa and American Express card, both linked to one account and annual fee. No point expiry. | 19.99% | 19.99% | 4.99% for 6 months | $145.50 | 44 | |
 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. | 19.99% | 19.99% | 6.99% for 6 months | $290 | 44 | |
 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:
- Earn Frequent Flyer Points With ANZ Frequent Flyer Credit Cards
- ANZ Frequent Flyer Credit Card – Earn up to 1 Qantas Frequent Flyer Points per $1 spent
- How To Pay For Your Next Holiday With Your Credit Card
- Qantas Frequent Flyer Linked Credit Cards – Earn Frequent Flyer Points Faster!
- Best Frequent Flyer Credit Cards
- Which Air Miles Credit Cards Operate Frequent Flyer Programmes?
- ANZ Frequent Flyer – Bonus 16,000 Qantas Freqent Flyer Points Offer
Show Comment Form
Editor's Choice: Our Top Credit Cards
HSBC Credit Card
0% for 6 months Balance Transfer & No Annual Fee
Featuring a $0 annual fee for life, and 0% p.a. balance transfer for 6 months, the HSBC Credit Card was voted the Best Transactor Credit Card for 2010.
Suncorp Clear Options Standard Visa Card