Originally Posted by
Deano969
I for one do not subscribe to the Australia can't support more than 2 airlines theory, there are plenty of examples on all continents, of 3-5 airlines serving thinner routes than here in Oz
I really hope that one day someone with deep pockets can have a real go at QF and teach them a lesson
To make it work here with sustainable earnings you need scale. More so vs other countries to offset the higher fixed costs of operating here. The magic number is about 30 aircraft. Tiger had its 30 aircraft plans, Rex and Bonza also have the same number.
Tiger got to 18 and that was about all the market could handle. However it still didn’t make money. In fact it lost $1b in 13 years.
Poor execution is half the reason why nobody ‘can take it to QF’. We won’t talk about the pussycat, and Rex is carrying single digits in and out of the Gold Coast today so they must be doing something wrong.