Quetzal
Topic Author
Posts: 88
Joined: Fri Feb 09, 2007 11:22 am

Jetstar SYD-BNE From December - Cannibalising QF?

Sat Jun 23, 2007 10:03 am

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.
 
QANTAS077
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RE: Jetstar SYD-BNE From December - Cannibalising QF?

Sat Jun 23, 2007 10:13 am

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.
 
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flying_727
Posts: 381
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RE: Jetstar SYD-BNE From December - Cannibalising QF?

Sat Jun 23, 2007 10:25 am

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
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QANTAS077
Posts: 5185
Joined: Wed Jan 14, 2004 5:08 pm

RE: Jetstar SYD-BNE From December - Cannibalising QF?

Sat Jun 23, 2007 11:00 am

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?
 
Gemuser
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Joined: Mon Nov 24, 2003 12:07 pm

RE: Jetstar SYD-BNE From December - Cannibalising QF?

Sat Jun 23, 2007 11:07 am

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
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Lufthansa
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RE: Jetstar SYD-BNE From December - Cannibalising QF?

Sat Jun 23, 2007 11:25 am

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.
 
Gemuser
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Joined: Mon Nov 24, 2003 12:07 pm

RE: Jetstar SYD-BNE From December - Cannibalising QF?

Sat Jun 23, 2007 11:53 am

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
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pilotdude09
Posts: 1335
Joined: Mon May 02, 2005 12:35 am

RE: Jetstar SYD-BNE From December - Cannibalising QF?

Sat Jun 23, 2007 11:33 pm

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.........
 
Flying-Tiger
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Joined: Mon Aug 23, 1999 5:35 am

RE: Jetstar SYD-BNE From December - Cannibalising QF?

Sun Jun 24, 2007 12:11 am

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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