Jetstar to Seoul
and Scoot has just killed them off MEL-SIN.
The Buchanan fantasy is now over.
The Buchanan fantasy is now over.
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Love it a thread on Jetstar going to Seoul becomes a Scootitude.
Yep JQ MEL-SIN only twice a week, Scoot daily and yes 2 crew as is JQ, so no need for crew bashing.
JQ int dead in the water? Starting a new route...
Does QF fly to Korea?
Yep JQ MEL-SIN only twice a week, Scoot daily and yes 2 crew as is JQ, so no need for crew bashing.
JQ int dead in the water? Starting a new route...
Does QF fly to Korea?
Yes, JQ only do MEL- SIN 2 times a week, but prior to around Oct 2017 it was 6 times a week.
It was always full, in both classes. As the route structure to LHR was changed, QF stepped in with a daily 380 MEL-SIN, and JQ went to 2 times a week.
The same thing happened with MEL-NRT. JQ fly the new/marginal routes, if the business case stacks up (i.e. good premium load projection), QF take it over.
A nice way to limit the losses on new routes, get slots and establish a presence in the new destination with code share arrangements in the destination country.
SQ do the same with SCOOT.
It was always full, in both classes. As the route structure to LHR was changed, QF stepped in with a daily 380 MEL-SIN, and JQ went to 2 times a week.
The same thing happened with MEL-NRT. JQ fly the new/marginal routes, if the business case stacks up (i.e. good premium load projection), QF take it over.
A nice way to limit the losses on new routes, get slots and establish a presence in the new destination with code share arrangements in the destination country.
SQ do the same with SCOOT.
Pretty sure Qantas were flying MEL-NRT and MEL-SIN long before Jetstar came around to ‘establish a presence in the new destination’.
More like a poor network decision to replace QF with JQ on those routes has finally been acknowledged and rectified.
That is not a dig at JQ, they have an important place in the market but those routes ain’t it.
More like a poor network decision to replace QF with JQ on those routes has finally been acknowledged and rectified.
That is not a dig at JQ, they have an important place in the market but those routes ain’t it.
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Has it been announced anywhere that the Singapore flights will be cancelled or is that just the speculation at this stage? I agree that this seems the most likely scenario given the decline in frequency on the route and Qantas’ heavy presence.
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It is incredibly difficult to stretch a stage length without destroying whatever cost advantage Low Far Airlines have.
Whilst demand can be induced at low price points the model cost gets distorted outside given stage lengths for passenger amenity, like blankets, food and galleys. That passenger amenity costs money means that density is sacrificed. High density and high load factors are needed to squeeze a dollar.
Further crews need overnights, they need hotels, thus utilisation declines eroding whatever margin was apparent.
Combine it all with very demand elastic customers and it is at best a very finely balanced proposition.
Fort Fumble had in their IR wet-dream the fantasy that passengers would simply transfer from QF to JQ. Unfortunately, they failed to model and anticipate competitor response.
When your competitor can offer product on a full service airline for a price you change for low fare, who wins?
When other competitors can use their robust mainline carrier to supplement a loss leading low fare airline, who wins?
Jetstar may well have a role, stimulating leisure travel and an industrial wedge, but long haul operations isn't it.
By 2022 Scoot will be five times that of Jetstar Asia.
Anyone remember Auckland-Singapore-Beijing A330?
Anyone remember Auckland-Singapore-Beijing A330?
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I even remember JQ flying SYD/KUL I think it was, way back...
As Rated D pointed out - JQ's market demand is highly elastic - so they struggle to push for greater unit revenue. It is a balancing act on seat factor and yield.
I am not so sure on the 'passenger amenity' peice since all these items are ancillary and mitage some of the opportunity costs of more seats (with no amenity).
The other biggest factor for JQI, which will always be problematic is FX and fuel, since they fly longer sectors, the have higher exposure to fuel costs, and in particular, costs outside of their control, thus typically there is a correlation between EBIT margin and jet fuel price, which you can plot with QFI to see (-91.2% correlation). And then of course - irrational capacity in the market for which JQI ad QFI are severly punished by lower cASK operators.
As Rated D pointed out - JQ's market demand is highly elastic - so they struggle to push for greater unit revenue. It is a balancing act on seat factor and yield.
I am not so sure on the 'passenger amenity' peice since all these items are ancillary and mitage some of the opportunity costs of more seats (with no amenity).
The other biggest factor for JQI, which will always be problematic is FX and fuel, since they fly longer sectors, the have higher exposure to fuel costs, and in particular, costs outside of their control, thus typically there is a correlation between EBIT margin and jet fuel price, which you can plot with QFI to see (-91.2% correlation). And then of course - irrational capacity in the market for which JQI ad QFI are severly punished by lower cASK operators.
I saw a J* crew overnighting in Bali in a Holiday Inn Express and wouldn't be surprised if the cabin crew were sharing rooms. QF mainline would turn their noses up at anything below Crowne Plaza level and individual rooms for everyone. In some markets ticket price is the only thing.
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I saw a J* crew overnighting in Bali in a Holiday Inn Express and wouldn't be surprised if the cabin crew were sharing rooms. QF mainline would turn their noses up at anything below Crowne Plaza level and individual rooms for everyone. In some markets ticket price is the only thing.
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I saw a J* crew overnighting in Bali in a Holiday Inn Express and wouldn't be surprised if the cabin crew were sharing rooms. QF mainline would turn their noses up at anything below Crowne Plaza level and individual rooms for everyone. In some markets ticket price is the only thing.
Excuse me if I’ve missed the sarcasm, but, otherwise, your taking the piss, right ?
Similarly, for Australians Spain is exotic whereas for Brits it's low end package deals.