Yada Yada said:
Interesting development. This would really put some pressure on the SYD-LAX prices.
While I support the idea of Dj flying Trans-Pacific, and I think it will be a good thing for all concerned, I do not hold much expectation of this meaning lower airfares across the board.
DJ stated they do not have plans for a no-frills Trans-Pacific operation. And in my opinion the fares at the lower end of the economy range are good value now. QF makes their money out of good yields in the premium cabins and flexible economy fares, and I don't see a DJ startup affecting that too much.
And in my opinion, lower air fares Trans-Pacific is not necessarily a good thing all round. There are some downsides, especially around the impact that reduced fares has on reduced profits and hence the target to reduce costs base with the associated reduction in service levels. Some may say the service levels are poor now, but I shudder to think how increased competition at the lower end of the market and price point will affect the travel experience. Increased competition and lower fares are not always a good thing for the customer in the long term.
I hope DJ make a success of it, and that they introduce a product that brings good competition based on good service rather just based on price. VS has found success with this model and I believe it is the best model for long-haul routes. Introduction of some inovation (well compared with current QF model) such as Premium Economy on a 3-class aircraft (Y, Y+, J) would drive success through the right type of competition in my opinion.