True..... in Part
There are certain routes where QF mainline has never been able to make money,because they are basically leisure routes.
They are therefore price sensitive.
Rome,Athens, Vancouver Tahiti and Honolulu to name a few
Some Asian ports like Taiwan and Korea may also fall into this category.
QF Mainline will probably shrink to routes where P/C and premium J/C are in demand.
Doesn`t leave much...LHR LAX HKG BKK SIN SFO etc.
Even this will eventually change with technology...777LR "hub busters".
JetStar will service these leisure routes with a lower cost base in a 2 class configuration.
Peter Gregg has been working on this for about 12 months
Jet* will become a large part of the Qantas Group.
Qantas mainline will be the premium end of the business.
It will ultimately downsize.
The point is, most travellers care only about price not about brand.
Older wealthier and business travellers care about brand, comfort and service.
They are in the minority and shrinking
The Japanese are the one standout..they are interested in Brand.
I doubt a LCC will ever be successful servicing The Land of the Rising Sun.
But then again....
Jet*will have a higher attrition rate of staff..stay 3 to 5 years,party, shop, see the world.... leave.
Small super costs,fresh faces lower wages,cheaper accommodation.
No retired staff on stafftravel
Dixon's dream