Originally Posted by
T-Vasis
Furthermore - increasing airfares creates its own problems. And that comes from the consumer and their sensitivity. The low-cost consumer (who is sensitive to the macroeconomic environment) in economic terms is 'unit elastic demand'. Putting up fares will see a decline in consumer uptake since leisure travel is discretionary. It won't work.
I really can't see your point in this and your at the risk of looking like a management shill coming through with these sweeping statements.
An insignificant increase in airfares will fund the pilots reasonable requests, Joe blogs will not give a flying **** as to what's a high/low airfare for that route.
Especially when Jetstar is more profitable than Qantas per Capita.