Originally Posted by
BNEA320
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..
Junkstar as you so eloquently put it has plenty of frequent flyers on the triangle more so on SY-ML, also have regulars on a lot of other routes, I’m not loosing any sleep. Jetstar already have a lower cost base which VA don’t have, remember they have expensive EBAs for unproductive work forces that have not been re-negotiated yet. I’m confident there will be punters keen to travel once these bans are lifted and they will look for the cheapest option, Jetstar will come out strong their prices may increase a little on some routes but all airlines will do this they have a lot to recover.
VA have a lot of work to do before they’re any kind of competition to anyone even Rex. latest from Deloitte as their debt closer to $6.9B so it will take a lot to entice anyone to buy VA given their track record over the years.