Paper Planes - I should have been more specific and you're 100% correct that we all know $10.00 fares are driven by building brand awarenesss.
However, if this oil price continues to move higher then you correctly point out that these initiatives will be cut very short. LCC's are high-volume low-margin businesses & the effect of higher oil prices MUST be passed on.
The point I was trying to make is that Tiger is offering these insane fares at not tomorrows pax but next years. They haven't even got an AOC yet.... We all know who they're backed by but I reckon if the price of oil stays up here the time a pax gets to Hobart next year it will be cheaper to fly home with JQ or DJ - So explain to me how they make that work?
