OzJet flies into Victoria, from SA
Join Date: Oct 2001
Location: Australia
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The actual population in each city is not the issue. What is the issue is the number of passengers on the route itself (the number of people wanting to fly!). So I think the comparison with LAX-JFK is reasonable (if not conservative - I think MEL-SYD has more pax than LAX-JFK, though I'm happy to be corrected on this)
Now I don't have the statistics here in front of me, but from memory SYD-MEL is the 2nd or 3rd busiest route in the world in regards numbers of passengers. What I'm simply saying is that on such a busy route, there is room for a third carrier.
Now I don't have the statistics here in front of me, but from memory SYD-MEL is the 2nd or 3rd busiest route in the world in regards numbers of passengers. What I'm simply saying is that on such a busy route, there is room for a third carrier.
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The Melbourne Sydney Route has a capacity growth prediction by a factor of 9. It does not automatically mean there is room for a 3rd carrier and that it can share in the growth fairly. The present encumbants will grow their fleets disproprotionately to match that growth and demand greater access. There is no single or two aeroplane operator in that market today because the costs are disproprionately high. This is why Ozjet cannot, in my view succeed in the current configuration. Ozjet has no core operation to protect itself on that route, has no RPT experience and appears to lack market respect.
What Ozjet could do is to start with a low cost high density product to get itself established and then gradually grow its business product. In this way it would buffer its revenues by offering overflow capacity e.g. Friday night when many miss flight or still want late flights.
What Ozjet could do is to start with a low cost high density product to get itself established and then gradually grow its business product. In this way it would buffer its revenues by offering overflow capacity e.g. Friday night when many miss flight or still want late flights.
