Okay guys, to suggest DJ
is barely competing with qf is ludricous.
drove fares to that level and thus drove competition
are marking a margin on domestic flights of around 35% QF
are on the otherhand around 17%. Do the math. under the current structure, if DJ
reduce their prices and/or increased capacity to operate at a level around QFs current margin, then, QF
assuming it matched fares, would not be profitable on those routes in question. Hence the introduction of jetstar.
Those little perks that QF
give away arent the expensive bit. Although i think they could be more efficient with them. back to that in a minute. the point here is, its the higher density aircraft configuration, lower staffing levels and lower pay levels that makes the big difference. I was on a QFlink 717 flight between BNE
monday, and, i must say, given that about half of the seats were sold around the $80 mark, that flight, which used to be a 733 or 734, was completely full, whereas the 737s used to run about half empty. The cost structure of those 717s would have allowed for the cheaper fare AND
them to be available in a substantial volume and what do u know, it works.
Now back to the earlier point. That QF
box contained just an apple and 2 buscuits. it was a very expensive way to package that. they should just do what jetblue or SAS does in a similar situation and hand it to u in a small paper bag. they could pass the savings on to customers in the form of more or better snacks.
Now what can jetstar do that QFlink cant? charge for those same goodies. and, then, DJ
and jetstar can do a ryanair and give away a few otherwise empty seats and make 12 bucks on the sale of goodies inflight to those customers. remember thats 12 dollars profit from a seat that would have probably otherwise remained empty. can they do it? absolutely! PS
, i really think those 717s are a great little shuttle jet. despite the lack of inflight entertainment, i think if u had complementry booze on them, and fitted the rear ventral stairs for faster deplaning, you have a damn good shuttle. PS
- per 744, most ppl live on the east coast and dont get all that stuff u mentioned.