Dragun,
Cut and quote what you like, but re-read, have a think and you'll see my belief is:
- A new business unit would result in a lower cost base, however;
- It would canabalise VA's existing marketshare, much like JQ has done to QF in recent years
Explaining how costs would be reduced was in reply to neville's comment that it couldn't be done. It is a fact new entrants can establish a lower cost base (if that is their entended strategy) - think Virgin -> Jetstar -> Tiger. Sure, a Virgin LCC could benefit from this, but what would be the effect on revenue and therefore profits across the whole group? We all know the answer.
Me saying "hopefully they'd (they would) set the business up properly" was followed by "and not use smoke and mirrors like QF/JQ do". It's also a case of saying "they would" vs. "they will". I'm not hoping it is set up at all, but if they did go ahead I was explaining I'd hope they would avoid hiding all the costs and profits from shareholders like the other team continue to do.
You even reposted on your own thread when no one initially replied. Maybe there was a reason for that?
I was hoping for a thread about something non-Qantas related and a discussion about strategy that went a little deeper than the Joyce bashing you read in every second post. I also wanted to point out the rubbish that was published in the Australian newspaper about the whole thing.
Play the ball, not the man.