Originally Posted by
LostontheLOC
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.
Unfortunately, Low Fare Airlines are low margin businesses.
What T-Vasis is referring to is simply economics. The type of passenger inclined to purchase Jetstar flights is (very) price sensitive. Unit elastic demand is the Achilles heel of Low Fare Airlines. It is the reason ancillary revenue is vital to their survival: The can't cover seat cost on the prices advertised.
The problem for Mr Evans is that executive largess (insane salaries-his included, bonuses and greed) have been contrasted to the pay freezes, falling real wages and worsening conditions of the many staff.
There is a reason why no airline has copied this "amazing strategy" on the scale of Fort Fumble.
It is fortunate that accounting latitude allows selective reporting of the most favourable of figures!
Kudos to the staff though, airlines do very well without executives; all around the world airlines are running just fine without whole floors of admin.
Airlines do less well when pilots, cabin crew, engineers, check in staff etc are not present..