PPRuNe Forums - View Single Post - Geez Qantas that was quick!
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Old 2nd Mar 2018, 05:30
  #71 (permalink)  
Ollie Onion
 
Join Date: Mar 2012
Location: Dark Side of the Moon
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Honestly who cares, the Qantas Group is profitable, Qantas Mainline is now expanding and recruiting. Jetstar was setup as a way of protecting the low cost end of the market, a market that Virgin was very successfully eating up for itself, Jetstar has worked a treat in this respect, it has forced Virgin away from that demographic and kept Tiger small. Sure Qantas does give some commercial advantage to Jetstar but that is the benefit of being ONE group, every large entity does exactly the same thing. If you think it is truly illegal then you should report it with your evidence.

Jetstar are never going to generate the equivalent profits for the equivalent ASK's as they are a LCC, margins are thinner, costs need to be lower and it works on bum's on seats as opposed to high yield routes and products (business / first class). The passengers that fly on Jetstar are not necessarily passengers who would travel on Qantas if Jetstar didn't exist. Many only travel because of the $29 fares. Even if you put a basic economy class down the back of a Qantas plane the fares at the lower end would not be sustainable with the cost structure of a large airline. We see examples of legacy carriers all over the world trying to adapt, British Airways now doesn't have reclining seats on Eurofleet and you have to purchase food, Air NZ now has a product where you get nothing on board, they still aren't as competitive as their respective LCC competitors because their costs are so much higher.

Jetstar and Qantas are a strong model together, they dominate the domestic market in Australia, create issues for Air NZ in NZ and are now starting to generate profits for Qantas in markets where qantas had little to no presence such as Japan and Vietnam, this is a good thing for the group surely?
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