I am arguing that the large capital deployed to JQ at the expense of the neglected QF (fleet renewal/product etc.), has meant that JQ contributes poor revenue for the effort invested, be it fleet size, capital invested and market ASK's relative to what may be achieved at Qantas.
I did not say to increase QF ASK's. It was about extracting better yield at QF and lowering cASK with a modern fleet and better product - winning market share from VA etc.
The 'line in the sand' was a chest-puffing contest. VA irrationally dumped capacity and QF simply followed suit. Even at the time, VA was in fiscal pain.
Well, it is easy to reduce cASK by spreading more of JQ's fixed-costs even further with ASK growth. But that is a poor strategy if the demand isn't met, as well as required route economics. They'll need an even aggressive ancil. strategy to offset potential further yield dilution. I think 4% YoY is not going to be supported by the market, at least at reasonable yielding fares.