Bolty you are spot on...
That it the whole furphy of the J* arguement.
Does the market and observers really believe that Q is the only airline that can co-control a premium airline and a so called Low cost model. Same aircraft same routes generate the same costs. If the fare structure generates any yield I would be astounded. Notwithstanding the pay structure, yield is yield. Accounting can produce any figures management want...Beleiving that J* is somehow much cheaper than a mainline carrier neglects the fact they borrow are gifted and otherwise acquire things at nominal value....If the supporters of this crap beg to differ show me an audited set of accounts, paying particular attention to what comes from the parent. There is no magic, it is tricky accounting nothing more... Guess there really are fairies at the bottom of the garden!
Want to test the robustness of the yield from a LCC, look at the morphing of Ryan Air, super cheap fares but so many add-ons with new being added every day..
As a business matures in aviation, aircraft age etc business adds cost and a low yield model relying on volume must find addtional revenue...
Hence Ryan Air looking into charging for the dunny...
Of course Qantas management were the smartest guys in the room...That's why we are adding capacity when all other airlines are shedding it...
J* sole aim was to apportion cost, log it back through mainline at every oppurtunity, hence load up the parent with ridiculous costs. Just look at what flight operations must absorb in its budget (Qantas is an airline, flying people) the cost apportioning is ridiculous,so many unrproductive empires in accounting/finance/marketing/OHS/HR et al .Aided and assisted by workchoices there was the setting to break the pesky unions..Kind of like a waterfront/workchoices sort of shake up...
I will stand corrected when stand alone accounts are produced...somehow dont see that happening
If however J* is about low wages, then that "cost" is lower for sure..As an operating overhead, what percentage of overhead is that, particularly with respect to flight crew/engineering etc?