If the two major airlines believe TW - SY will support 5-6 daily return services then arguably TW - BN is at least a 3-4 daily return market. A lowering AUD will assist the influx of overseas travellers to Australia but where does just Jetgo turn if either or both launch one or more services to BN ex TW?
This maybe a 'cheap' route to operate, definitely not a cheap route to compete on. With sub $100 tix on offer, the Jetgo hardware can't compete. Unlike GLA-SY, they have no comparative advantage ex TW. VA & QF will be watching their numbers closely and when the time is right, more than likely a new service will go up against JG. So how do they see off the competition and remain a competitive operator in this market?
An alliance of sorts with another operator could be one option. Moreover, the best chance to remain in the RPT market and hedge risk to some extent would be to become a contractor, ala Cobham & Alliance. Clearly they're not marketers but they can operate the hardware and from all accounts, do it very well.
As the only E135 operator in Australia, they have an instant comparative advantage provided they can open the minds of larger operators to see the benefits of the type at RPT on suitable sectors. Could this be Rex's easiest opportunity to morph into a jet operator?
JG have opportunities, but it won't be by just flying A to B. I really believe they're best chance is not as a stand-alone RPT outfit but still, the time is right to be in RPT due to the relatively low fuel costs and a low AUD. Most of all, to have real skin in the game & be able to influence a merger or acquisition, they have to gain some 'street cred', a network or a critical mass in RPT, & unfortunately TW-BN won't provide that foundation.