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That is a big call saying that JQ could/would pick up a lot QF's market share.
I think the argument here is if QF are dropping or significantly reducing capacity on a route, with JQ picking up the pieces, they’d do better offering [domestic] StarClass on all routes, as oppose to only on a few, as the result is people go elsewhere. Admittedly, the argument is people who fly JQ don’t care, but what about those that do, but have no other choice but DJ.
Seems reasonable to expect, especially with recent changes, they’d be more inclined to fly DJ over JQ and zero earn. So, if JQ offered even the Club Europe experience, I think they’d do better, than just saying 'no' to frequent flyers requests… especially considering there are technically a lot more frequent flyers (that haven’t flown yet) now due to Woolworths.