Jetgo - have they gone?

[Nulli Secundus]

I think the type is an ideal RPT choice given its first to market in Aus with no direct jet competitor (at present). A hub busting model will more than likely be their unique operational advantage (don't be tempted to pull in to a port en route!), but that won't make it a walk in the park.

A qantaslink Q400 operating say Bundaberg Sydney would be only around 20 mins slower so they could be challenged to some extent.

The day to day operations will be relatively the easy part. Knowing some of the management people from years back, I do hope they've honed their marketing skills or have some really sharp people on the team to drive their sales programme. A very substantial sales & marketing budget does certainly need to be on hand from the outset.

Jet vs prop won't count for much if the prop price is more attractive, particularly ex regional centres. The incumbents' loyalty programmes alone will prove challenging.

James Strong proclaimed many years ago that when you initiate a new route, it must make money from day one. Planning to wear losses in a start - up phase is death. The message is hit the ground running and fill that machine from the first departure.

That's really where these games are mostly won or lost. The opposition doesn’t need to annihilate you, just keep you one seat below the break even load factor and its Korda Mentha to the rescue.

All that said, I think they can be successful. Who knows what success may mean to the founders (around for 20 years as an independent, sell out to VB/ QF/ Rex or maybe a code share/ feeder arrangement).

If the plan is not to play the long game, it would be wise to establish and maintain a dialogue with other prominent airline people as early as possible.