Originally Posted by
1A_Please
It's all a bit confusing. I take QF's 70% share as being the group's (inc JQ and QFLink) share of the total domestic scheduled market not just jet operations. In that case, I'd have thought REX's legacy prop services would've approached 2% of the market. Does anybody have an understanding of this data?
In order to make sense of percentages, such as market share, you need to have a handle on the actual size of the market. Historically, the size of the domestic travel market has been relatively stable, growing at typically less than one percent per annum. That made comparing market share numbers quarter-on-quarter and even year-on-year a fairly straightforward matter.
Pre-COVID, the market was around the 5 million passengers per month mark.
The ACCC Airline Competition series of quarterly reports only started in September last year. Over their reporting period the domestic travel market has gone from barely 1 million pax per month to around 2.7 million per month for March 2021; growth of more than 2.5 times but still only about half of what it was pre-pandemic. So, you need to temper those smallish quarterly changes in market share against the much bigger changes in the size of the market (it grew by over 20 percent from 2.2 million per month in December).
And of course, market share does not equate to profit.
Regarding the Rex numbers, you're correct, pre-pandemic with just their regional operations they had 2 percent of the total domestic market. For March they had about 4 percent of the total domestic market; that included 2 percent of the larger city–larger city market. The big caveat on interpreting that data is that it captures only the first month of Rex's jet ops when they were only flying one route; they only added OOL and ADL at the end of March.