Originally Posted by
crosscutter
I’m sure the A350’s in Jetstar colours will look as good as any other. Whether the required seat config and premium pricing requirement will suit the Jetstar business model is another question.
Precisely. It is of course contract season. Insert subsidiary.
At least one JQ CEO was shown the door for a flash of honesty regarding the long haul IR wet dreams of Little Napoleon et al. They failed to accept a reality in the Low Airfare space: It remains low airfares. Stretch the stage length and unit costs rise too. Unless an airline can grow revenues (increase prices) then operating margins decline. That they persist is more about ideology than economics.
There is no yield premium in JQ brand, their market niche is to stimulate leisure travel, thus they are forever demand elastic.
Of course, that won't stop the same old stories surfacing about JQ/ Network/Jetconnect etc taking over the 'flying'.
Qantas has not the slightest bit of interest doing it, execution risk is formidable. This is why they needed a narrative of 'terminal decline' last time to make the execution less risky.
Insiders know that it can't work, but of it they will still dream.
In the mean time.
Qantas need a new fleet.