Record Profit for Qantas

[nlagalle]

Ramping up the competition with VA again?

I think with the amount of own goals VA seems to kick of late QF don't really need to worry about spending money on competition with them..

 

[anat0l]

Ramping up the competition with VA again?

Not sure what that means - do you mean there is no competition at the moment and hence VA are winning, or do you mean they should tighten the screws on VA like they tried unsuccessfully to do before?

I did forget one big point on the list, which is basically passing savings on to customers, i.e. lower surcharges, fees etc. etc. I guess it was worth missing it out because we know it ain't going to happen.

 

[JessicaTam]

Not sure what that means - do you mean there is no competition at the moment and hence VA are winning, or do you mean they should tighten the screws on VA like they tried unsuccessfully to do before?

I did forget one big point on the list, which is basically passing savings on to customers, i.e. lower surcharges, fees etc. etc. I guess it was worth missing it out because we know it ain't going to happen.

I was referring to the seat war. Would QF try to get back the capacity they lost (conceded) to VA? Perhaps as nlagalle suggests, they may just have to sit back and wait.

 

[anat0l]

I was referring to the seat war. Would QF try to get back the capacity they lost (conceded) to VA? Perhaps as nlagalle suggests, they may just have to sit back and wait.

They'd be silly to do it in the way they tried before, i.e. flood VA out of the market. That's not happening.

Although step change improvements in product for cost/value will assist in this regard, VA would need to harm itself for QF to make significant inroads into its market share. By that time, the popular media and other players may then argue that the monopoly is near and will prevent QF from dominating, whatever that form may take.

On top of that, I'd wonder which fish is a bigger fry - QF vs VA domestic, or QF vs everyone in the longhaul international? Stack on top of that, QFF vs VFF...

 

[nlagalle]

They'd be silly to do it in the way they tried before, i.e. flood VA out of the market. That's not happening.

Although step change improvements in product for cost/value will assist in this regard, VA would need to harm itself for QF to make significant inroads into its market share. By that time, the popular media and other players may then argue that the monopoly is near and will prevent QF from dominating, whatever that form may take.

On top of that, I'd wonder which fish is a bigger fry - QF vs VA domestic, or QF vs everyone in the longhaul international? Stack on top of that, QFF vs VFF...

I think VA are doing that as we speak.. very inconsistent product, not offering a service that is a "full service carrier", pathetic "meals" the flapped up seat selection fee, etc etc...

 

[anat0l]

I think VA are doing that as we speak.. very inconsistent product, not offering a service that is a "full service carrier", pathetic "meals" the flapped up seat selection fee, etc etc...

They're (VA) certainly not doing it deliberately or from a frivolous disposition. Or at least that would be a sensible assumption.

I mean VA would really need to screw up for QF to make a significant inroad. Like it or not, the market equilibrium clearly shows that VA is a viable alternative to QF. Given that everyone is also not in favour of the monopoly scenario - and VA may well be playing to this fiddle, too - there may well be enough external forces in reserve to ensure QF never achieves a significant portion of the market, irrespective of its however inferior rival(s).

 

[nlagalle]

They're (VA) certainly not doing it deliberately or from a frivolous disposition. Or at least that would be a sensible assumption.

I mean VA would really need to screw up for QF to make a significant inroad. Like it or not, the market equilibrium clearly shows that VA is a viable alternative to QF. Given that everyone is also not in favour of the monopoly scenario - and VA may well be playing to this fiddle, too - there may well be enough external forces in reserve to ensure QF never achieves a significant portion of the market, irrespective of its however inferior rival(s).

Qantas already have a significant portion of the market. They still dwarf VA.

I haven't seen the latest passenger stars but would be interesting to see how it's changed over the last 12 months. I can see how VA would have gained much if at all.

I'd like VA to be a true competitor to QF, but sadly they aren't..