BaronB, from one Baron to another I think the crux of the point that The The is making is where is the investment in the most profitable part of the QF Group??
Internal memo states the international loss was $216 million while total 'Qantas' profit was $228 million, so domestic must account for a $444 million profit. This far exceeds any other section of the business. Jetstar Asia made a paltry $14.3 million profit. Yet Jetstar's further international forays and a new Asia based A320 operation are having billions of dollars of investment capital thrown at them.
What about Qantas Domestic??? Nothing!!
I agree with you, the issue is not about replacing JQ domestic with with QF domestic as they are different products for different markets. However why not invest in the QF domestic product with;
1) Better interiors/service offerings - to fight of the growing Virgin threat, and
2) Rush the 787 in to replace the 767 - which will drive unit costs down with lower fuel and maintenance costs.
Investment that would sustain QF's competitive advantage/market share and increase profit margins.