Originally Posted by
DownUnderFlyer
The interesting thing is that many carriers in the world tried their luck with budget spinoffs. And most of them failed. The biggest exception to this is the Qantas group. They have now created a problem nobody else has: They can't get the parent to work while the budget arm is successful.
The reason why JQ has succeeded was that it was a measured introduction to replace QF routes, not compete with them. Other low-cost carriers competed with the parent (Go Fly) or didn't have the correct cost structure (TED operated under United's AOC and labour agreements).