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Old Apr 4, 2005 | 10:04 am
  #16  
RichardMEL
 
Join Date: Dec 2000
Location: Melbourne, Vic., Australia.
Programs: QF Platinum One (LTG), UA Plat IHG Plat
Posts: 5,836
While it's true you don't NEED more than one class I think it is important. This is why I suggested a Regional Membership might make more sense (consider Blue1 as an example). Of course, it still leaves a dilema where to feed your premium customers too - I believe most carriers have agreements with QF to stick those customers in J (say you arrive at SYD from a OZ flight and you want to get to ADL or PER and you're in F... do you really want to go to row 13 on DJ when you can get row 2 on QF and a corresponding level of service?).

All I am trying to say is that it's not just any one thing that's a showstopper, but I think all of them together make it a problematic option for now - unless Patrick really changes the way DJ does business (remember, they are competing with JQ at the 7-8 cent CASM level right now - you add in lounges, FF programs, etc etc.. that CASM goes way up, and JQ wins that particular battle...).

QF on the other hand has been smart with JQ - they offer QFF points and SC's on the highly inflated JetFlex (full) fare tix which the business folks buy anyway and they make a massive margin on, and they can bear the costs of those FF perks in the parent company, so it may not even have a noticable affect on CASM.

I doubt DJ can easily match that one.

I can imagine DJ would be forgine close ties with many foreign airlines (UA is a start) that don't want to be in bed with QF. SQ is the obvious choice here - while they fly to all major AU cities on their own, they can always use that feed from tassie and to/from such places as OOL, CNS, ASP & DRW plus regionals. Given the Virgin investment/stake in SQ this would also have nice synergy. However that would essentially also compete with VS on SYD-LHR so that's a point against (why give to SQ when you can funnel everyone to VS at SYD and later MEL?).

Interesting times ahead.
Still.. interesting times ahead here.
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