I agree is a problem - what in what way don't they have a good enough product?
Many think of product as the in air product - and personally I think that is adequate for a typical corporate traveller - OK you have to pay for food, but is that such a big deal? Maybe prepaying for meals (ala JQi) would help the corp traveller, but maye not. Perhaps the other exception is lack of widebody capacity MEL/SYD and east coast/PER. People tend to prefer widebodies to narrower planes - but then again the last three QF flights I've taken MEL/SYD have been on a 738 and two 734's.
In the wider sense though - the thing that DJ lacks is being part of a broader alliance. The frequent flyer program is not good enough for the wider corporate market. Sure it has status etc, but it lacks international acceptance/coverage. Until such time as the people who fly MEL/SYD every week for the whole year start getting benefits on their overseas trips, then they will will continue to fly QF. Even then, probably only a star alliance like arrangement or extending benefits with their current program partners (EK, MH) would work, but Skyteam may be a challenge due to a lack of broad Australian access to Asia/Europe. Secondly, lack of extended network to offer corporate deals for may also be an issue.
Anyway, I still think DJ will be around for a while yet. If they go under I think there will be a lot of airlines elsewhere in the world with stronger competition and tighter markets than Australia, that will go under first.
Yes, you do need to think of the product as much more than just the in air components. And yes, you also need to get the FF scheme right (which DJ have not due to lack of true alliance membership). And yes you have always to nail the corporate deals, etc.
More importantly, you have to recognise that what the business end of the market is actually buying is a sense of prestige, exclusivity, importance, in fact an all round feel good factor. It's the
"W" factor from WP status.
There is
no way you can justify spending say $1,350 to fly one CNS-SYD in J instead of $200 or less in Y, on adding up the cash value of the composite benefits (QC, check in line, meals, booze,etc).
The fact is that there is no real W factor in DJ's PE product. A little more convenience and comfort perhaps. True W factor is something else and persuading (maybe fooling) folk into thinking they are getting it is a black art that QF is still much better at than DJ (although it is great to see DJ open more biz lounges).
People fly business because it makes them feel special and important. Corporations will fly their staff business if they perceive a benefit in making those staff feel special and valued.
DJ just doesn't get it when it comes to the biz end of town. Unfortunately, QF, on the domestic front, is treading a fine line between trying to save money (reducing business end (and FF) benefits and service) and pissing people off thus undermining that brand factor elixir, potentially a very dangerous game (once you lose it, it becomes hard to regain it).
It is a real pity DJ haven't done a better job for the biz end of the market and given Qf some much needed competition.
