Biscuit Chucker - all the revenue Jetstar earns goes to Qantas...so in-effect, they're doing better by having Jetstar. Of-course, that should not be at the detriment of Qantas - but that is a subjective topic...
Jetstar is not operating on every single Qantas route - they've opened some new markets that would have never been viable for Qantas. They've also moved into markets that Qantas was never viable on.
Qantas had no choice but to bring Jetstar in, otherwise that "gap" would have been filled by a competitor (probably foreign) that would send the money off-shore aka Tiger (although they're loosing money), but anyone else...What was to stop a Middle Eastern or Asian airline setting-up shop in AUS...Great for the punter - not so great for our wealth. Why should a foreign carrier milk our economy.
At the end of the day - all strategic decisions for both business must be approved by the board - so ultimately - it is the board who are "driving the ship"...
Sunfish - time will tell I guess - but the future continues to look positive for Jetstar in terms of growth and viability. 30% or so growth year-on-year, reducing unit costs, and improving ebit. They're now turning over two billion in revenues and returning around 6-8% I think from last fiscal data...That's pretty sound in this climate.
Last edited by PPRuNeUser0198; 4th Feb 2011 at 11:05.