Originally Posted by
SHVC
Whatever emerges after June one thing is certain Virgin Australia and Jetstar will struggle to survive the next 12 months. When domestic operations start up there will be still some form of social distancing laws in place for aviation and to get customers confidence it will be in the form of blocking the middle row, this is why Virgin and Jetstar will struggle to survive. QF have a more loyal customer base and might get by, but JQ and VA are and will be low cost they will have to increase airfares to counter this by how much guess by at least 40-50%. The whole social media campaign “save Virgin keep fares low Australia needs two airline” well let’s see if they keep to that I very much doubt they will be able to.
I disagree. Any new virgin will have got rid of most of debt & will have much lower costs than qantas.
Qantas makes a huge % of profits on golden triangle. Most of virgins revenue come from triangle as well.
So competing on triangle, qantas has high costs & virgin low costs. Both will have plenty of frequent unlike junkstar.
We're in a deep recession & many will forget about ff pts & go for cheapest option with frequency(which rules out JQ, (although some small business owners might fly JQ to save $5), which well might be new virgin, whatever it's called.
Re social distancing - initially only effects single travellers not families & may mean in worst case, wearing a mask.