Jetstar cost base advantage myth
Let us all take a step back from the rhetoric and disinformation and look at airline costs in general:
1.Approximately 1/3 of the cost is fuel. Fuel prices are fixed by outside forces, obviously, and can only be modified by hedging activities (which are a zero-sum game and eventually average out to a zero advantage, at best). Qantas hedges its fuel on a group basis.
2. The next third goes to equipment leases, navigation and landing fees, terminal fees, insurance, catering supplies, maintenance and repair costs etc.
Of these, perhaps only catering is relevant to the Jetstar model since it does not use second tier cheaper airports as do the European and some American carriers.
3. The next third is wages. Since Jetstar staff do earn around what? 15% less? That equates to a net 5% savings. That's it. Take whatever pride in that what you will: it comes at your cost.
Jetstar gets its very expensive management costs paid for by the parent, and its insurance and regulatory burden. But mere accounting trickery cannot exist without that robust patent. If Qantas shrinks to just Jetstar you guys can pay Joyce's ridiculous salary on your own.
Back to the catering savings: Lack of expensive catering is why there is also generally a lack of expensive fares: and we all know that a low cost base is useless without a revenue base.