Originally Posted by
TBM-Legend
A bit of history will tell you that before making their last "run at QF" they had at least made a few buck. The days Godfrey then JB started their attack on QF it was game over. Read Sun Tzu's book "The Art of War". all answers are there.
Virgin made money early on, but then Qantas expanded JQ and started squeezing Virgin hard from below, while dominating the corporate market from above. JB moved upmarket to get out of that pincer (because it would have been harder to cut costs enough to compete head on with JQ, while QF free to keep reaping in corporate accounts). QF dumped capacity on them while matching VA on enough product and service metrics to keep and win back accounts.
If VA tried to go back to a LCC, it'd still have to figure out how to beat JQ while leaving all of the corporate accounts to QF.