Qantas putting up the white flag on its "65% line in the sand" strategy?

[markis10]

But it is extremely interesting that the figure is so difficult to find. It is also interesting that the Qantas reports do provide some ability to get relatively useful numbers for the Qantas airline parts of the group but not Jetstar.

1st Half of 2012 JQs CASK was 4.1c per Km

 

[eastwest101]

So 2.7c/km lower than Tiger Aus and Tiger Singapore?

 

[markis10]

So 2.7c/km lower than Tiger Aus and Tiger Singapore?

Apparently so, however 1H 2013 I get 7.2 and 1H 2014 7.5c

 

[markis10]

Apparently so, however 1H 2013 I get 7.2 and 1H 2014 7.5c

By comparison QFi 0.0965 and QFd 0.156

 

[medhead]

Those numbers are JQ domestic or all of JQ?

 

[JohnK]

You are correct, lets hope they keep QFF, and sell off JQ, JQi, 3K and all the other J* germs for good...

Hmmm. I am repeatedly told on AFF that JQ is the future of Qantas and that JQ is a fantastic airline.

What a load of hogwash. Sell JQ and see how they survive on their own without a helping hand.

 

[Aussie_flyer]

Hmmm. I am repeatedly told on AFF that JQ is the future of Qantas and that JQ is a fantastic airline.

What a load of hogwash.

you said it. People aren't saying how fantastic they are, they are simply saying they are not as BAD as you continually make them out to be (despite proudly having never flown them but still continuing to bash them regardless). You love to twist things around to suit your argument don't you? But those of us who monitor these forums can see the truth.

 

[markis10]

Those numbers are JQ domestic or all of JQ?

All of JQ, QF don't break it down.

 

[Mr_Orange]

Hmmm. I am repeatedly told on AFF that JQ is the future of Qantas and that JQ is a fantastic airline.

What a load of hogwash. Sell JQ and see how they survive on their own without a helping hand.

I'm fairly certain hardly anybody on AFFF would say that JetStar are the future or are good. It is quite the opposite, but it is what it is and you get what you pay for. It is the EasyJet of Australasia. There is no denying that it has a place in the Australian skies and you have a choice whether or not to fly the airline. You choose not to. Fair enough.

That said, they should stand alone from a business perspective and QF management should stop muddying the financial waters between the QF and JQ businesses.

 

[moa999]

Jetstar reports as a separate segment - and makes money (net) although one could argue Jetstar's domestic operations are propping up its foreign arms.

Note also that Qantas reports segment earnings as EBIT.

As Jetstar predominately leases everything this means all lease costs are deducted before EBIT.
Whereas Qantas owns a bunch of planes, terminals etc that have effectively been debt funded, which need to get removed to do a full comparison.

 

[JohnK]

I'm fairly certain hardly anybody on AFFF would say that JetStar are the future or are good. It is quite the opposite, but it is what it is and you get what you pay for. It is the EasyJet of Australasia. There is no denying that it has a place in the Australian skies and you have a choice whether or not to fly the airline. You choose not to. Fair enough.

That said, they should stand alone from a business perspective and QF management should stop muddying the financial waters between the QF and JQ businesses.

This has been my stance all along yet people choose to ignore it.

I have flown Tiger. I am not going to fly a LCC of an airline I hold status with and that status ignored.

JQ should be a separate entity. I think they would struggle without QF help and through traffic.

 

[Aussie_flyer]

This has been my stance all along yet people choose to ignore it.

I have flown Tiger. I am not going to fly a LCC of an airline I hold status with and that status ignored.

JQ should be a separate entity. I think they would struggle without QF help and through traffic.

You still choose to ignore your lounge benefits with JQ to suit your argument.

 

[mannej]

Everyone has a right to view each airline as they choose to do so.

JQ/3K etc is not for everyone and that is fine, however JQ do still have a purpose and that is also fine.

Lounge access is only a small part of status recognition, and this is about the only benefit that is recognised on JQ.

 

[whatmeworry]

Hmmm. I am repeatedly told on AFF that JQ is the future of Qantas and that JQ is a fantastic airline.

What a load of hogwash. Sell JQ and see how they survive on their own without a helping hand.

I don't think the people on AFF have described it like that. I think it is more a case of QF being cannibalized to fund JQ.

 

[lovestotravel]

Get back to me when VA actually make some money on domestic.... There is more than enough capacity around without the need to add additional!

As I said

Qantas move won't stop cheap airfares, say analysts

Qantas's decision to freeze its domestic capacity is unlikely to push up the prices of airfares by much in the near term, because the airline has been struggling to fill seats even while offering historically low prices.
Qantas, which has boosted capacity by around 3.5 per cent since January, will not add any more from July to September.
It had planned for a 2.5 per cent increase during that period but has removed some off-peak flights from the system and will use smaller aircraft on some other flights. That means a 767 flight between Sydney and Melbourne might be switched to a 737.
Qantas is keen to emphasise that it isn't shrinking – it will instead be halting further growth.
However, it hasn't ruled out increasing Jetstar's capacity while shrinking the Qantas brand, so long as the overall capacity is flat.
The problem Qantas has had to date is that it has been increasing capacity at a faster rate than demand, which has left it unable to fill its airplanes even when offering low fares such as $95 one-way from Sydney to Melbourne.

Read more: Qantas move won't stop cheap airfares, say analysts
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