I guess there’s been about 7,000 posts on Prune about Jetstar, some thoughtful, many abusive and some ignorant. We could no doubt have run a medium sized hydro-electric generator with all the bucketing that has gone on.
All relate in some way or another, however obliquely, to the issue of what to do about rapid growth in the lower yield markets. How to capture it profitably without cannibalizing your own traffic and how to maintain the yields in areas where the market is willing to pay more.
Qantas was always in a better position than anyone to run an LCC subsidiary. It’s ability to internally cross-subsidize in many forms, not just cash, is actually a great strength, not a weakness. Like gravity, you don’t have to like that fact, or agree with it, but it's there and remains true.
But here’s the real deal. Amid the 000’s of Jetstar posts there were two that were pure gold and should be written up on the walls of crew rooms, board rooms, executive washrooms and anywhere else that you can find. Forget the rest.
The posts were by whatever6719 and they sum it all up in exactly 55 words.
I really do think a successful 2 brand strategy was their intention, but, they got greedy. They saw the savings that could be made by "Jetstarising" Qantas and they have sadly gone too far with it.
Make Jetstar what it was meant to be ...low cost, cheap and cheerful carrier that does not cannibilise mainline.
Whoever you are 6719, well written.
Thanks
Sherm