Muff Hunter.
Jetstar are not making money independantly.
I repeat they are not making money independantly.
I dont wish for the demise of Jetstar, let them be profitable by their own accord & not by piggybacking the Qantas mainline brand. In that regard best wishes.
From the sources I have spoken to today, they told me that the ONLY reason that "Jetstar still exists" (there quote) is that they are propped up by the parents Accounting department.
Hence my statement that the parent company are sending in their own to sort out the accounting practices that are inconsistant with the parents own standards.
Its not about cost base its about brand, the QANTAS mainline brand is a successful product. The Jetstar brand is successful but only because it's cost base is propped up by some clever in house accounting. Of which the transfer of costs to the parent is starting to agitate those responsible for the parents cost base.
Tester - You dont need to explain. But there will always be a premium service available. Even in non peak times by Qantas Mainline.
The other rumour going around is Jetstar have until 25-05-09 to make it independantly profitable. That's 5 years since the launch date.
MC
