Godspeed, good points and I agree with them.
However Air NZ still has operating costs 30-40% above PB/JQ so even matching fares in the back they must be losing more than PB/JQ in comparison. Higher yeild in the front does offset this however. Economies of scale is in their favour along with a good feeder network.
If they had their own LCC they can match the cost base with totally sep. staff and wages and bottom feed using this vehicle. They could also gain by using their own check in and ground handlers, eng. etc, on a contract basis so sig. advantages their with the infrastructure already in place.
All I am thinking is how well JQ has worked for QF. Without it they would have given a LOT more away to VB.
EMB - HN and others would be ideally suited to the EMB both domestically and trans tas. But this does have training and engineering issues for PB which go against the LCC model.
I am interested in how you KNOW that Air NZ costs are 30-40% higher, my point is just that it is easy to assume something to be so, then go make a whole arguement based on it as though it is fact.