There will always be people who are willing (and able) to pay a premium for SERVICE!
Qantas has always profited from this customer base... QF offer the "service" and there are sufficient customers who will part with their hard earned cash to enjoy such service...
As an aside, I remember watching a doco about Concorde... The aircraft was bleeding money for BA and so a team of senior captains were tasked with turning the division around...
One of the things the team did was to ask the passengers how much they thought a ticket cost... As most of the passengers were business people, their staff took care of purchasing tickets, so they had no idea... Turns out, most indicated a significantly higher ticket price than what was charged...
So the simple solution, to turn around Concorde's profits, was to increase the fare!
Take it easy trolls, I'm not saying Qantas should increase its prices! What I am saying is that not all customers want to fly the Jetstar way!
Problem is, management has concentrated so much on the LCC that the premium service has been
seriously neglected!
What's a customer to do then? Well, it doesn't take someone with an MBA to work out that they'll take their business elsewhere... and so, we find ourselves in our current situation.
It's a real shame that the powers that be don't have the metal to recognise their mismanagement and set the course right!
Instead they continue along the path of cost cutting, which is very much to blame for the position we are in, (certainly good for KPIs and management bonuses
), but WILL NOT TURN THE COMPANY AROUND!
EARTH CALLING MANAGEMENT, ARE YOU LISTENING?