From another story in The Australian
Jetstar said its offer of reduced fares to passengers with only carry-on luggage aimed to give it a competitive edge.
"The airline gets a saving because one of the biggest components of cost we have to pay is loading and unloading bags," chief executive Alan Joyce said.
"It gives more transparency to the consumer about who has the lowest airfares. We think it appeals to the business traveller and short-break traveller, and allows us to promote a lower airfare for those customers."
The airline keeps its 20kg checked luggage allowance for people paying the full Jetsaver fare, and noted this was 5kg more than Tiger's allowance.
People who book a Jetsaver Light fare and then decide to take luggage will have to pay the fare difference plus a $10 change fee. The discounts will not be available on the airline's more expensive Jetflex fares or on flights to the US and Japan.
Mr Joyce said personal experience prompted the decision to negotiate an increased carry-on limit with the regulator. "I know from my travels 7kg was a little bit tight if you wanted to do an overnight bag or go away for a couple of days," he said.
The spin must be making everyone giddy. As Jetstar say that the charges for loading will be less if there's less baggage, this means either there will be fewer loaders or loaders will be paid by the bag. I should think it will take a long time for any savings to be accrued apart from a minute saving as a result of lower fuel burns. How much more cr@p can we expect from AJ's spin doctors?
Anyone know what the increased carry-on limit is?