Originally Posted by IsDon
Moving a couple of inefficiently utilised 737s off mining routes will result in increased flying for both mainline 737 and A330
Are the 737 actually being used inefficiently? Sources indicate a 9% reduction in hours Jan 18 vs Jan 17. The source also indicates an 18% less flying hours compared to the peak in Aug 16. This final figure needs to be tempered with the fact it isn't like for like months.
Further, sources indicate only about 6.75 ~ 7 hours flying per 737 aircraft for (domestic) per day.
So I question the inefficiency argument. I see the inefficiency as a deliberate function of the two brand strategy. If the 737 was utilised like the J* A32x's, likely in the 10~12 hour per day range (typpical LCC), there would be an excess of seats domestically. Reducing 737 flying offers a structural subsidy to enhance the profitability of Jetstar, and maximise the QF yield instead of flooding the market with seats. The two branded strategy isn't all upside, and capacity has to be carefully managed, the 737 is the swing lever.