Originally Posted by
Des Dimona
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.
Probably more depends on leasing arrangements. I believe for domestic, QF own most of its 737 and over half A330 fleet whilst Jetstar relies more on leasing, but it does own some. I would expect it much easier to arrange cheaper storage leases than when the aircraft are flying. Thus, using mainline with its fully owned fleet could be the cheapest option.