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Jetstar SYD-BNE From December - Cannibalising QF?  
User currently offlineQuetzal From Australia, joined Feb 2007, 141 posts, RR: 0
Posted (7 years 5 months 1 week 14 hours ago) and read 1975 times:

Bonjour all,

Just noticed that GeoffStar will be launching it's 'long awaited' Sydney-Brisbane service from December 4th.
Launch fares from A$39.

No doubt a pre-emptive move to head off Tiger..... but what interests me is that this is the first route that puts JQ in direct competition with Qantas (by this I mean a major Capital to Capital business route from the gateway airports as opposed to 'all leisure' route segments).

Granted, the launch timetable suggests an off-peak schedule, but are we seeing the beginning of cannibalisation of market share on QF's bread and butter routes?

Your thoughts....


No matter how far you push the envelope, it will always remain Stationery.
8 replies: All unread, jump to last
 
User currently offlineQANTAS077 From Australia, joined Jan 2004, 5861 posts, RR: 39
Reply 1, posted (7 years 5 months 1 week 14 hours ago) and read 1965 times:

Quoting Quetzal (Thread starter):
Your thoughts....

all the money ends up at Qantas in one way or another! I'd prefer to see them do a little more in Perth rather than this east-coast centricity that they have! fastest growing economy in the country and they service us with 1 lousy flight a day that arrives at AVV at midnight.



a true friend is someone who sees the pain in your eyes, while everyone else believes the smile on your face.
User currently offlineFlying_727 From United States of America, joined Jun 1999, 440 posts, RR: 5
Reply 2, posted (7 years 5 months 1 week 14 hours ago) and read 1949 times:

Sometimes companies use cannibalisation to eliminate a current product. It's a common ploy for marketers to do this. It's possible that Qantas may attempt to leave the route later if the new service takes off.

just a thought



On ATA, You're On Vacation
User currently offlineQANTAS077 From Australia, joined Jan 2004, 5861 posts, RR: 39
Reply 3, posted (7 years 5 months 1 week 13 hours ago) and read 1913 times:

Quoting Flying_727 (Reply 2):
It's possible that Qantas may attempt to leave the route later if the new service takes off.

leave the Sydney-Brisbane route, are you smoking something?



a true friend is someone who sees the pain in your eyes, while everyone else believes the smile on your face.
User currently offlineGemuser From Australia, joined Nov 2003, 5761 posts, RR: 6
Reply 4, posted (7 years 5 months 1 week 13 hours ago) and read 1909 times:

IMHO this is the next logical step in the evaluation of JQ, spured along by the entry of TR.

I think the objective here is to grow the market into people who do not currently fly or encourage those who do so rarely to fly more. I doubt there will be much cannibalisation of business/higher yield traffic, as for discount Y, who cares?

Gemuser



DC23468910;B72172273373G73873H74374475275376377L77W;A319 320321332333343;BAe146;C402;DHC6;F27;L188;MD80MD85
User currently offlineLufthansa From Christmas Island, joined May 1999, 3224 posts, RR: 10
Reply 5, posted (7 years 5 months 1 week 13 hours ago) and read 1896 times:

Quoting Gemuser (Reply 4):
ink the objective here is to grow the market into people who do not currently fly or encourage those who do so rarely to fly more. I doubt there will be much cannibalisation of business/higher yield traffic, as for discount Y, who cares?

This is obviously aimed at Tiger... but if tiger starts offering cheap prices at peak times, jetstar may have to try harder thent his... QF has one big advantage. If they want to, at any time, they can offer QF frequent flyer points... we shall see...

Another option of course is having jetstar crews operated "QF" branded aircraft on these routes...with QF onboard service.... this may reduce costs a little further for QF's operation.


User currently offlineGemuser From Australia, joined Nov 2003, 5761 posts, RR: 6
Reply 6, posted (7 years 5 months 1 week 12 hours ago) and read 1867 times:

Quoting Lufthansa (Reply 5):
Another option of course is having jetstar crews operated "QF" branded aircraft on these routes...with QF onboard service.... this may reduce costs a little further for QF's operation.

I have said this in previous threads. I am sure the long term plan is to have EVERYTHING "operated" by JQ, under the QF, JQ & QFLink brands. That is one pool of staff both air & ground and maintenance arrangements all under the JQ staffing agreements, AOC & COA operating services and aircraft under all three brands. This would minimise cost and maximise revenue.


Gemuser



DC23468910;B72172273373G73873H74374475275376377L77W;A319 320321332333343;BAe146;C402;DHC6;F27;L188;MD80MD85
User currently offlinePilotdude09 From Australia, joined May 2005, 1777 posts, RR: 4
Reply 7, posted (7 years 5 months 1 week 1 hour ago) and read 1671 times:

Quoting Lufthansa (Reply 5):
Another option of course is having jetstar crews operated "QF" branded aircraft on these routes...with QF onboard service.... this may reduce costs a little further for QF's operation.

Dont go giving Geoff ideas now!!!!  Wink



Qantas, Still calling Australia Home.........
User currently offlineFlying-Tiger From Germany, joined Aug 1999, 4166 posts, RR: 36
Reply 8, posted (7 years 5 months 1 week ago) and read 1651 times:

Quoting Lufthansa (Reply 5):
This is obviously aimed at Tiger... but if tiger starts offering cheap prices at peak times, jetstar may have to try harder thent his... QF has one big advantage. If they want to, at any time, they can offer QF frequent flyer points... we shall see...

Might be a good idea, however when Lufthansa offered the same low fares as their competitors but with Miles & More frequent flyer points the German cartel office made clear that this "extra value" needed to show up in their price some how. Bottom line for Lufthansa: either miles and more expensive or cheap and no miles. Could be a case where the Austrlian cartel office would have a look at as well.



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