Originally Posted by
1A_Please
Sorry but this is delusional. As at today QF has a mainline domestic fleet of around 20,000 seats. This is only the A332s, 738s and 717s and does not include the jet fleet principally but not exclusively concentrated on FIFO as well as ignoring the A333s can also operate domestically. Even after allowing for the 4, as yet, undelivered 738s, REX has a domestic jet capacity of just 1760 seats. We know QF domestic jet operations were profitable in FY22 Q4 as they announced it to the ASX. REX did not make a similar comment because it isn't and if it said it was the directors would be committing a crime.
How so? The EK deal has enabled QF to offer one-stop services to Europe and Africa that it could never profitably operate using its own metal.
and yet QF would love to have them all operational as we speak.
What exactly about REX's jet operations constitute new blood? The are flying old jets rejected by their competitor who instead took newer leased 738s that were available. They have the same hard product that VA operated the jets with so not any innovation there. They are flying no unique routes but instead flying a few trunk routes that they only partly fill when selling the seats at stupidly low prices. They pay under-the-odds so much that staff quickly resign when they find out they are eligible for re-employment back at QF or VA.
Really?
1) So if QF have a domestic seat capacity of 20,000 and REX will have 1,760, this is getting close to 9% assuming REX has 10 738s and stops growing, assuming QF/JQ has 70% market share and REXs jets are going out at 85% then YES REX is eating away at QF/JQ market share by around 5%
With nothing else factoring in QF/JQ market share going from 70% to 65% would on it's own see a shareholder revolt
2) Prior to EK QF had more 1 stop options on its own metal and just as many via Asia
3) Even AJ said better to run 2 x 787s than 1 x A388, again 1 disaster to the next, QF needs the 788s only to fill a capacity gap, they are very slow coming back as they were initially stored with the intention of never coming back, AJ many times predicted a surge in demand post covid but did nothing about it, now there is talk about wet leases 787s coming (hey they may well be permanent!!!)
4) New blood does not mean new routes of frames, it means a new way of doing things, like being a lower cost base as
JS said cheaper that JQ for example or how about offering old fashioned and value for money to their customers or even getting luggage to the destination