For those wondering if a mistake has been made in investing in JQ and not in QF mainline, I refer you to the Boston Matrix. Do yourself a favour and have a read. QF Group management are just blindly following what Boston told them to do many years ago. It will give you a sense of acceptance as to where this ridiculous farce has come from and is going, until we have a board and exec flush out. Unfortunately this is not on the horizon.
Boston Matrix
Here's the tip :
Network / Jetconnect are the Question Marks (allocate minimum practical resources)
Catering / Startrack were the Dogs (dispose of if you can)
JQ is the Star (invest heavily at all cost)
QF is the cash cow (milk and starve.... She'll be right!)
So don't pat yourself on the back and think that it is your answering the phone and flexibility that makes Jetstar receive more investment, it is merely their current strategy. They knew exactly what they were doing when they purchased Impulse. The above helps explain why no JQ business in Asia has returned their cost of investment, and a yet they still receive shiny new jets. It also explains why, with such doubts over the profitability of JQ Intl, they are receiving the brand new B788's. Money will continue to be thrown into the Orange Abyss no matter what.
Likewise, if you are at Q, don't despair that your extra ton of fuel is running the company into the ground, and therefore not allowing the board to allocate funds the way of mainline. It won't make a brass razoo of difference. The cash cow is there to be milked and starved of investment and that is exactly what has been occurring for many many years. Even the most cockeyed optimist would agree that Qantas has suffered a lack of investment.
So to answer the question as to why the institutional investors have not jumped up and down when those at the 'cash cow' despair at the direction of the company...
They are just simple numbers people as well. When AJ rocks up and says he is "just doing what Boston Consulting told him to do", the all "ooh" and "ah" and that is the end of it.
JMHO, but it all adds up unfortunately. Qantas will continue to fight with one hand tied behind its back no matter what we do about it.