zkncj wrote:qf2220 wrote:eamondzhang wrote:IIRC both JQ and TT ran $19 promotions before so honestly this is nothing new. Although this was probably 4 or 5 years ago now.
the difference then was that they were the ones without market power so really they could charge whatever they wanted. QF has market power and there are ACCC abilities to prevent market power abuses from being used in exactly this situaiton.
NZ would often either match or undercut an JQ special, $9 domestic sales aren’t unheard of on NZ/JQ, or further an field looking to Europe 1euro fares are an thing on airlines like RyanAir.
Loss leader fares aren’t an bad thing for the market, they help motivate the market.
An person picking up an $19 SYD-MEL, is still going to do good for the economy. They are definitely going to spend allot more on there trip than just the $19, which otherwise they wouldn’t of spent.
In SYD alone if they took the train they are already paying atleast $18 into NSW.
It's not about loss leader fares per se. It's about someone using predatory pricing to damage a competitor. Allowing someone to do that is not good for the market. Monopolies tend to end up nasty without strict regulation. NZ may discover that if JQ don't return.