And a few others:
Why is Jetstar flying to Perth when it is a fact that, per ASK, the A330-200’s as operated by Qantas Mainline are actually cheaper, but gets significantly higher revenue, this is why the A330-200’s make in excess of $100 Million (which is 10% of the profit from only 2% of the aircraft).
Can the board confirm that the $100Million dollars plus that these 4 aircraft generate in profit will be made up for by the profit that Jetstar make from these 4 aircraft (it would seem unlikely as the “Wildly Successful” Jetstar Domestics 20+ A320’s only make $40 Mil).
Will the board confirm that they have considered the competition aspects of the Jetstar international business. For example, each of the routes they compete on will be up against a
DIFFERENT and
LARGER competitor. This means that for the opposition to undercut against Jetstar they are only doing it on one of their many routes, maybe 2 to 5% of their entire route network, yet 20 to 25% of Jetstars network. If they are all aggressive Jetstar cannot survive. The market that exists for Jetstar Australia where you have one major competitor who is rational (
VB) is not even close to what the International market will be. This is the lesson from Jetstar Asia that has not been learnt. This whole exercise will make Jetstar Asia look like a good investment!