Originally Posted by
Bull_Shark
There must be some significant assumptions put into that modelling:
- Ultimately if you are talking about break even points and load factors, there has to be an assumption on yield?
- The article seems to suggest that JQ (being a low cost carrier) needs to fill less seats that QF (the mainline full cost carrier). That seems to be a pretty basic contradiction in how LCC’s work
- Despite Virgin coming out of administration with significantly less debt, renegotiated EAs that resulted in lower cost bases for cabin crew, pilots, engineers and ground staff, and the renegotiation of commercial contracts including aircraft leases - the article suggests VA have to carry 34% more passengers than JQ and 21% more than QF.
Plenty in that article doesn’t stack up.