TurbTool:
If not for the second part of your post, you may received some support of your query
You're obviously concerned about the contribution margin as well. And I can guess which side of the fence you're on.
FDG135:
You must live in a darkened room with no contact with the outside world to be asking this
Actually you must not understand the business if you are not asking this.
VB was a significant threat to Qantas when they came along but are nowhere near that threat level now
About 4 or so years ago when the rapid expansion of
VB slowed, it was not due the arrival of Jet*, but the fact that they had expanded so fast that their support systems (engineering etc) had hit capacity. Since the support systems caught up they have been consolidating. Also several other factor have caught up with them, lack of fuel hedging and their ageing fleet now costs more to maintain than when they first arrived (something about to start appearing on the Jet* radar and balance sheets).
So now they (
VB) are coming after the premium business (high yeild) traffic. And why.... because QF have forced them into a position where they have to, at the same time the premium mainline brand (where most if not all of the profit is made) is being canibalised in an effort to prop up your so called success. It sure makes a lot of sense to piss off your high yield business customers by withdrawing mainlne service from a port and inflicting them with Jet*.
Don't forget the fight that GD picked with Tiger in SIN (Jet* Asia - which has lost how much??) and now the reply from up north is Tiger in our own back yard. The Singaporean's have deeper pockets than QF, not to mention the loss of face issue. They will be here for a long time to come.
The person who gets to try and put all the peices back together again is going to have their work cut out for them.