T-Vasis, that’s a very myopic view. Low yield per ASK is the normal for a low cost carrier. It’s not “better” revenue at a lagacy carrier, it does however generally require higher ASK’s for the same yield and a more diversified ancillary revenue stream. Yes it’s poor rASK, but that’s the business model and requires scale to do so.
Your assumption is that the market can absorb the higher airfares without affecting ASK yields of a legacy carrier with an increasing ASK, which actually doesn’t make sense.
The famous “line in the Sand” is a great example where increasing ASK to maintain a percentage market share was detrimental to the business.
Give JQ will be experiencing a 12% increase in ASK over the next 3 years creates an event more competitive associated unit cost, and competitive low fares. It creates the margin requested by the board, however is also a big call assuming a softening leisure market, because they still need to fill the seats.