Pricing of QF domestic J vs JQ intl * class

[dajop]

I know it all has to do with supply and demand (and the low cost structure of JQ), but nevertheless it is quite interesting that JQ star class in millenium seats for travel from MEL-BKK costs $998, which backing out the only real tax - the federal govt departure tax of $38 (IIRC) - comes to a total of $960. This for a distance of 4573 miles, and therefore is 21c per mile. For comparison, I note that the same millenium seats (if you're lucky and get a 738, and not a 734) travelling MEL-BNE on QF cost $975. THis is for a distance of 859 miles, and therefore $1.13/mile.

 

[Kiwi Flyer]

and the same seat (if lucky enough to get the right 733 a/c) on AKL-ZQN for NZ$74 recently was just over 10c a mile

so what?

 

[serfty]

Simple ¢ per km comparisons can be quite misleading.

In addition to flying costs (e.g. Fuel) there are set costs which are incurred by sector and may not be distance related.

e.g. Cost of ticketing, baggage handling, Equipment Sector counts leading to service intervals, feeding PAX, airport fees, etc.

 

[Evan]

The best comparison is to compare 2 indentical routes....

MEL-KIX or SYD-BKK

My guess is the discount business class QF fares were similar to the JQ fares but the regular priced QF J class fares were significantly more than JQ.
Either way JQ *class to me seems like good value on short routes where you dont really care about sleep that much anyway.

Evan

 

[dajop]

Ok, costs aside, it may perhaps indicate that due to S&D factors there may be money for the taking should a second airline in the domestic market come in with some sort of premium offering on a reasonable frequency (ie not Ozjet style). Noting that even a return Skybed to BKK can be obtained for not much more than double the price of a return J class to BNE.

Pertinently to this board, it underscores that he JQ * class fares are good value from a SC earning point of view.

 

[Kiwi Flyer]

Ok, costs aside, it may perhaps indicate that due to S&D factors there may be money for the taking should a second airline in the domestic market come in with some sort of premium offering on a reasonable frequency (ie not Ozjet style).

Not necessarily. Price doesn't give much information about costs. It could be that JQ *class is underpriced to build loyalty. Also most places there are lots of fares, not just the headline lead-in fare (which thanks to discounts, corporate deals, different rates in different markets, etc may not even be the lowest fare).

 

[dajop]

Price doesn't give much information about costs. It could be that JQ *class is underpriced to build loyalty.

Which tends to reinforce the supply and demand argument. If there is a need to build loyalty , and if JQ are underpriced, that must mean there is low demand (at least at the moment).

I think what you find in the Australian market, is that there is high demand in J class for the longer (2 hr+) flights, and QF can charge what they like. QF simply don't offer D class (discounted J) fares on routes such as MEL-BNE or MEL/SYD/BNE to PER but do on shorter flights (such as MEL-ADL/SYD, SYD-BNE).

 

[NM]

Ok, costs aside, it may perhaps indicate that due to S&D factors there may be money for the taking should a second airline in the domestic market come in with some sort of premium offering on a reasonable frequency (ie not Ozjet style). Noting that even a return Skybed to BKK can be obtained for not much more than double the price of a return J class to BNE.

Also look at the economy fares. It is likely that on the domestic routes the premium fares (business class, fully flexible etc) are subsidising the cheap seats. But on the JQ International flight, it may be that the regular fares are subsidising the Star Class fares.

Without knowing the numbers of tickets sold in each fare bucket, it is impossible to know how the revenues are being earned for each route type. The QF domestic flights tend to have many more fare types/prices than the JQ International flights making price comparisons very difficult.

But you example does indeed show that the JQ Star Class fare can be better value than a QF domestic business class fare. But if you are in MEL and need to get to PER, then a JQ Star Class fare to BKK is of little value to you at all.