Virgin does a Qantas!
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Virgin does a Qantas!
Virgin gives up 3 flights from one destination.
QANTAS pulled every flight out of the Gold Coast from every destination.
Hardly the same!
The fact is very simple: Virgin have withdrawn some services while Tiger have taken them over. Quantum does not matter, the principal is the same. Where are the cries of protest from the Virgin apologists? The playing field is truly uneven in more ways than one! 
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It's only a matter of time ......
They removed all the QANTAS services. Virgin isn't.
I'm fairly confident JB wouldn't have spent all that money putting in a lounge if he was then going to cease Virgin flights. He's not stupid!
AJ on the other hand...........
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Major difference is if you still want to fly Syd-Ool on Virgin you still have plenty of flights to choose from. And if you book virgin that's what you get. Unlike Qantas...........
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Borghetti is too smart to follow Qantas's lead
Borghetti is too smart to follow Qantas.
I think it will become increasingly apparent that the Virgin/Tiger combo are pursuing a true 'dual brand strategy', whereas Qantas has been cannibalised by Jetstar. Virgin and Tiger will tend to complement each other and compete with Qantas and Jetstar respectively. Qantas have never got that balance right and their attempt at a dual brand strategy has been a flop because the focus has been on fattening up Jetstar while Qantas has gone undernourished. This has lead to a lack of differentiation, internal competition, and is the 'chink' that Borghetti is exploiting cleverly.
I think it will become increasingly apparent that the Virgin/Tiger combo are pursuing a true 'dual brand strategy', whereas Qantas has been cannibalised by Jetstar. Virgin and Tiger will tend to complement each other and compete with Qantas and Jetstar respectively. Qantas have never got that balance right and their attempt at a dual brand strategy has been a flop because the focus has been on fattening up Jetstar while Qantas has gone undernourished. This has lead to a lack of differentiation, internal competition, and is the 'chink' that Borghetti is exploiting cleverly.
Last edited by HIALS; 5th May 2014 at 22:13. Reason: grammar
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their attempt at a dual brand strategy has been a flop because the focus has been on fattening up Jetstar while Qantas has gone undernourished
Last edited by Oakape; 6th May 2014 at 02:50.
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Yes - I can see the possibility of a hidden agenda, as you outline.
In which case, it will be interesting to observe the success (or otherwise) of a faithful implementation of a dual brand strategy. If you are correct (hidden agenda) then we have never actually seen one deployed in Australia before.
Another point that interests me is this. It seems apparent that 'Qantas Group think' was that heritage carriers providing full service was an antique arena that was largely unprofitable. This logic has resulted in, what I refer to as, the fattening of JST and the starving of QAL. However, if this is so - why is it that Virgins' transformation into a full-service airline is causing so much grief to QAL domestic profitability? Doesn't this point tend to act as a counterpoint to the deliberate strategy of Qantas Group management to wither their QAL brand and focus on growth of the LCC model?
In which case, it will be interesting to observe the success (or otherwise) of a faithful implementation of a dual brand strategy. If you are correct (hidden agenda) then we have never actually seen one deployed in Australia before.
Another point that interests me is this. It seems apparent that 'Qantas Group think' was that heritage carriers providing full service was an antique arena that was largely unprofitable. This logic has resulted in, what I refer to as, the fattening of JST and the starving of QAL. However, if this is so - why is it that Virgins' transformation into a full-service airline is causing so much grief to QAL domestic profitability? Doesn't this point tend to act as a counterpoint to the deliberate strategy of Qantas Group management to wither their QAL brand and focus on growth of the LCC model?
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I seem to remember a long time ago AJ and co saying Jetstar would never take over qantas routes or compete directly against it. 
Make no mistake Tiger are doing exactly that to Virgin now. I am not saying it is not justified or is not a sound decision, maybe it is needed on a group competition lever. However, it is the same thing. Tiger is Virgins Jetstar and this is just the beginning.
Hials said
I have no doubt JB is a very astute business man and saved Virgin from a quick doom had he not come in however the brand layout is more and more like qantas and the hard fact is I think there has been only one year of a small profit in about the last 4 since he has been around. That can only go on so long as well.
Will all the money spent on change, I like many, hope to see his plans bare fruit soon.
Make no mistake Tiger are doing exactly that to Virgin now. I am not saying it is not justified or is not a sound decision, maybe it is needed on a group competition lever. However, it is the same thing. Tiger is Virgins Jetstar and this is just the beginning.
Hials said
Borghetti is too smart to follow Qantas.
Will all the money spent on change, I like many, hope to see his plans bare fruit soon.
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The problem with QF & AJ's strategy is its an old strategy.
The QF group strategy was concocted in the early part of the last decade.
Before the GFC when making money was easier. All you needed to do was provide a service and customers would pay.
JQ was born so too the group strategy to expand its operations domestically, international and via bases and investments with franchises in Asia.
JQ was a great idea at the time. As long as BOTH QF & JQ we making profits.
The issue is, the operating environment changed, especially post GFC. QF executives (AJ supported by LC) have failed to modify the strategy as a result of the changing operating environment.
What they should be doing is:
1. Scaling back on JQ domestically replaced by QF business, economy and discount economy tickets
2. Pull the 787 out of JQ and operate them on a mix of QF domestic & international routes. Reduces costs in JQ staying an all airbus fleet.
3. New advertising campaign for QF branding
4. Return the QF brand to ports like HTI & direct services to OOL from more domestic ports.
5. Shutdown Jetconnect and fold the operation in QF domestic.
6. Rebrand JQ Asia as QF on the existing cost base. Increase QF branded flight to Singapore & go upmarket on the JQ Asia inflight product providing the QF brand a greater reach thru Asia on connecting services.
MC
The QF group strategy was concocted in the early part of the last decade.
Before the GFC when making money was easier. All you needed to do was provide a service and customers would pay.
JQ was born so too the group strategy to expand its operations domestically, international and via bases and investments with franchises in Asia.
JQ was a great idea at the time. As long as BOTH QF & JQ we making profits.
The issue is, the operating environment changed, especially post GFC. QF executives (AJ supported by LC) have failed to modify the strategy as a result of the changing operating environment.
What they should be doing is:
1. Scaling back on JQ domestically replaced by QF business, economy and discount economy tickets
2. Pull the 787 out of JQ and operate them on a mix of QF domestic & international routes. Reduces costs in JQ staying an all airbus fleet.
3. New advertising campaign for QF branding
4. Return the QF brand to ports like HTI & direct services to OOL from more domestic ports.
5. Shutdown Jetconnect and fold the operation in QF domestic.
6. Rebrand JQ Asia as QF on the existing cost base. Increase QF branded flight to Singapore & go upmarket on the JQ Asia inflight product providing the QF brand a greater reach thru Asia on connecting services.
MC
