It would appear that if QF really wanted the best return on capital, they would pour as much capital as possible into QF domestic to make even better returns.
It could even be argued there is a clear case for Jetstar domestic to be reduced and QF domestic expanded as it makes more money from the available seats it puts into the market.
I think these comments ignore (or at least overlook) some fundamental/basic economics. Just dumping more and more capital into QF domestic is unlikely to make '
even better returns' - in fact, doing so is likely to reduce the actual ROI figures in the short term (because you increase capex but don't necessarily improve revenue).
Likewise, shifting seats from Jetstar to QF domestic is also unlikely to improve the return on each seat sold. Surely there is price discrimination going on to eke out as much from each segment of customer demand as is possible? The people flying Jetstar aren't automatically going to shift to QF domestic - in fact, they're likely to shift to V or T.
I'm not sure what the argument is here? Kill Jetstar and hope QF domestic is able to pick up the pax? Not convinced its going to work.