Jetstar will serve it's purpose. It again opens up cheap air travel to those who otherwise couldn't afford it,b/c whilst our air travel is cheaper than it once was, it isn't all that cheap when comparing us with the rest of the world.. Whether it's successful depends on whether people use the service.
It serves 3 main purposes:
(1) Brand Awareness: QF
. Full service vs low cost. Strategically it seems a pretty good move. If Qantas loyal, you can fly Jetstar if it suits your needs. You can use your QF
frequent flyer points at a time that suits you. This helps to erode DJ
market share, which has no doubt hurt QF
. The other thing is that the Jetstar Brand allows Qantas to divorce itself from negative press under the "we established a different airline" clause. "We may own it but....." Most people forget that QF
owns Australian Airlines.
(2) Fleet renewal and future pricing: The future Aibus aircraft will be easily transferrable to the QF
or Australian fleet whenever required. It was a good way for QF
to get some new, cheaper capital which forces Boeing look at its pricing to Qantas.
(3)Pilot Relations: I can see the thought process now. Get a new manufacturers product. You want to fly these planes Mr Pilot then you will do it cheaply. We transfer the Airbus to Qantas, you go with it, making QF
flights cheaper to run. It also gives the company access to former Ansett pilots who are either still out of work or overseas looking for a chance to come home. Pretty sound labour policy/cost reduction strategy.
Negative press won't help, but if you need to get cheaply from A to B on a plane, then Jetstar can.