Ken,
I can tell you for a fact that when Jetstar cancel a service and Qantas run a charter, the monies from tickets sold stays with Jetstar.
Any other carrier would have to pay the negotiated fare per pax to the alternate airline. This does not happen in the JQ QF deal.
It is all about making JQ look good and QF look expensive as part of the three pronged strategy for setting JQ up in the first place.
- Stop Stoddart or someone else from setting up a LCC.
- Apply a bottom up \ top down competitive approach to VB, and
- Break the unions within Qantas.