Emotion about LCC offshoots aside it looks like JB has sensibly put a floor under
VB's domestic yields ensuring that growth in the bucket and spade brigade segments doesn't erode his upper class
VB operation. Qantas did it with JQ but hasn't managed all aspects well.
There is no way that JB will drive
VB growth down into the Tiger cost structure-that's the very opposite of what he's doing as he seeks to knock Qantas off the Citiflyer perch. I doubt that one molecule of his thinking apparatus is focussed on a purely cost driven approach for higher yield markets. He understands value as a proposition.
Having said that I wouldn't be putting the family fortune into
VB stock just yet. The path ahead for the Qantas Group might not seem clear or wonderful today but JB is not the only smart guy in the room. A new generation of QF management would have a much bigger springboard to use to launch into a "real" new future should the board choose to go that way.
Exciting times