Fruet Mich
18th May 2011, 08:18
So Jetstar survives on coffee and muffins!!!
1, Virgin could not survive as a low cost carrier and is now revamping it's product to a full service airline, and full service international carrier.
2, Qantas are very profitable domestically with full service and good route structure. Jetstar struggle even though they are full on most services but can only make small profits with the help of coffee and muffins!!??
3, Qantas long haul are supposedly not profitable on long haul flights even tho they are consistently on the higher end of airfares, both business and economy, and their load factor is above average in the mid 80's. Jetstar international are low 70's but supposedly profitable.
4, Jetstar has not been successful on long haul to date to Japan, even before the eathquakes and never will be. I would say they would be hemorrhaging cash. But no, it's said to be successful? WTF?
5, Qantas made close to 1 billion net profit in 2008, after this the GFC hit and just as a coincidence Jetstar expanded its operations into A330 operations internationally. Operations domestic, Tasman and in New Zealand saw massive expansion of Jetstar operations, often taking over Qantas operations because it was a "leisure" route quite often handing valued customers to the oposition. Today the world has recovered and other legacy airlines are back to their pre GFC profits, whilst Qantas are not? I wonder why?
6, Airlines have fixed costs, landing fees, parking fees, airways charges, staff and of course fuel. All these costs are fixed regardless of full service or low cost. Fuel costs are 30% of full servive carriers costs, 50% are for low cost carriers. This doesn't look like a good situation when you are transferring high earning business class seats for $29 bargains!
My question is how the bloody hell does this Qantas management team think they are going to make money on a long haul Jetstar product when Qantas long haul can not with their high load factor, high end product with full business class???
Have this management team presented a business case to their shareholders on how this product is going to be profitable over a full service?
Jetstar are desperate to make their product successful, so much so they are totally disengaging their biggest asset, their staff, with crazy new contracts trying to squeez every last little drop to make a profit. Is that a good way to run a business? If coffee and muffins are whats keeping this airline profitable I would say this management team are a bunch of idiots!
No wonder Qantas are only making small profits while the rest of the worlds LEADING carriers look to the future with optimism.
Wouldn't a fleet of modern B777's running long haul flights on an expansive route structure with it's huge world wide brand name QANTAS which has been 90 years in the making be a far better bet than a long haul low cost product with no brand recognition, no loyalty with small margins? I can't figure the thought process out? Jetstars going to have to sell truckloads of muffins and coffee!
Can anybody explain to me how this management team are so inept and arrogant to not see this? Maybe they are so desperate to make their failing low cost product work we might see the eventual bankruptcy of one of the worlds greatest airlines.
AJ, I don't believe for a minute your propaganda machine. The last time the world heard crap like whats coming out of your mouth was from a bloke in the 1940's. Joseph Goebbels. :mad::mad::mad:
1, Virgin could not survive as a low cost carrier and is now revamping it's product to a full service airline, and full service international carrier.
2, Qantas are very profitable domestically with full service and good route structure. Jetstar struggle even though they are full on most services but can only make small profits with the help of coffee and muffins!!??
3, Qantas long haul are supposedly not profitable on long haul flights even tho they are consistently on the higher end of airfares, both business and economy, and their load factor is above average in the mid 80's. Jetstar international are low 70's but supposedly profitable.
4, Jetstar has not been successful on long haul to date to Japan, even before the eathquakes and never will be. I would say they would be hemorrhaging cash. But no, it's said to be successful? WTF?
5, Qantas made close to 1 billion net profit in 2008, after this the GFC hit and just as a coincidence Jetstar expanded its operations into A330 operations internationally. Operations domestic, Tasman and in New Zealand saw massive expansion of Jetstar operations, often taking over Qantas operations because it was a "leisure" route quite often handing valued customers to the oposition. Today the world has recovered and other legacy airlines are back to their pre GFC profits, whilst Qantas are not? I wonder why?
6, Airlines have fixed costs, landing fees, parking fees, airways charges, staff and of course fuel. All these costs are fixed regardless of full service or low cost. Fuel costs are 30% of full servive carriers costs, 50% are for low cost carriers. This doesn't look like a good situation when you are transferring high earning business class seats for $29 bargains!
My question is how the bloody hell does this Qantas management team think they are going to make money on a long haul Jetstar product when Qantas long haul can not with their high load factor, high end product with full business class???
Have this management team presented a business case to their shareholders on how this product is going to be profitable over a full service?
Jetstar are desperate to make their product successful, so much so they are totally disengaging their biggest asset, their staff, with crazy new contracts trying to squeez every last little drop to make a profit. Is that a good way to run a business? If coffee and muffins are whats keeping this airline profitable I would say this management team are a bunch of idiots!
No wonder Qantas are only making small profits while the rest of the worlds LEADING carriers look to the future with optimism.
Wouldn't a fleet of modern B777's running long haul flights on an expansive route structure with it's huge world wide brand name QANTAS which has been 90 years in the making be a far better bet than a long haul low cost product with no brand recognition, no loyalty with small margins? I can't figure the thought process out? Jetstars going to have to sell truckloads of muffins and coffee!
Can anybody explain to me how this management team are so inept and arrogant to not see this? Maybe they are so desperate to make their failing low cost product work we might see the eventual bankruptcy of one of the worlds greatest airlines.
AJ, I don't believe for a minute your propaganda machine. The last time the world heard crap like whats coming out of your mouth was from a bloke in the 1940's. Joseph Goebbels. :mad::mad::mad: