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Old 12th Apr 2020, 00:42
  #21 (permalink)  
Des Dimona
 
Join Date: Mar 2006
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In lean economic times, Qantas uses Jetstar domestic more because of the low operating cost base compared to mainline.

When times are good, the profit margin is greater on domestic mainline and Jetstar tends to suffer.

So, in view of the undoubted recession (or depression, depending on your view) ahead, I don't see Jetstar domestic going anywhere soon.

However, Jetstar's international 787 operation has a huge question mark over it, as worldwide border controls are likely to force massive reductions in operations even after the initial restrictions are slowly removed. If it resumes, the 787 operation will be very small for some time. During this period of restarting international routes, Qantas will also probably want to take advantage of greater margins using the mainline fleet by removing the LCC element. This is a significant advantage, given that there will probably be fewer international operators and at a much less frequency.


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