Capt kremin,
How dare you let the facts get in the way of a beautiful charade!
The cost difference you refer to (30%) has been spun for years, and it is the biggest lie of all.
45 to 55% of the expenditure of an airline is directly related to fuel and aircraft, which clearly are the same whether you are an LCC or legacy.
Another 10 - 15% is marketing, computers, property etc. again, this is presumably the same on a like for like basis
Another 10% or so covers all sorts of other things, some of which an LCC may not have, but that is a choice that even a legacy could make if they thought that they were better off without these extras. For example, Qantas could save 3% tomorrow by not giving away free food, if they choose to keep the free food (presumably because they think overall it increases profit) it is hardly fair to use these items to crow about how Jetstar is cheaper. It is a choice management could make at anytime. For example why not have the last 4 rows on QF with no catering, no magazine, no headsets? Sub-Economy.
So really it just leaves the remaining 20 to 25% of cost to play with - Staff related costs.
Even if Jetstar staff work for FREE then the cost difference between it and mainline is not 30%.
More rubbery figures!
By my calculations, on a like for like basis the cost difference is around 8% (a long way from 30%).
Lies, lies and more lies, but why should we be surprised! QF are apparently using Enron as the role model for accounting and reporting standards.
Ben Sandilands should spend some real time and blow this whole thing wide open.