"...these low fares are here to stay."
Now, where did I hear that before?
Oh, that's right - it was back when Virgin commenced operations and again when JetStar commenced operations!
I'm sure I heard JetStar are offering 10,000 air fares at $1 plus taxes?? The way yield control works is that the carrier ensures a low fare is only available on the Thursday "red eye" special via multiple ports - when you want to travel direct at Monday lunch time!
Try walking up to the airport ticket counter with a buck in your hand and see if you can get a ticket on the next flight!
The name of the game is to maximise load factor
and aircraft utilisation. Qantas, with a majority market share, must lose something to Tiger. With Qantas recent aircraft orders and claims of a 200 aircraft fleet, it will be interesting to see if they can sustain both their load factors
and utilisation in a more competitive market place.
CC. I did my thirty plus years in airline management and three years in politics and enjoyed both. These days I enjoy watching. Both!
