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Old 29th June 2009, 03:09 PM
Steve Jones Steve Jones is offline
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Hi Brad, whilst you may well be right, I don't think you can make that assumption based on the figures provided, which are purely operational.

Also, whilst domestic loads and pax are doing OK, there is nothing said about yield, and hence for all we know, domestic is also haemorrhaging cash (though, as you say, I suspect it is holding up OK in the current environment, and much better than Qantas mainline domestic).

Going off on a tangent somewhat, it seems that the current crisis is seeing a shift in business traffic on domestic routes - people who traditionally would only fly Qantas are starting to see Virgin as a real alternative. You still get FF points, a good lounge product and high frequency of flights (allowing flexibility), but for a lower price. The result is that Virgin pax numbers are still increasing and Qantas is going backwards. Obviously QF is cushioned somewhat by Jetstar which is also benefiting from the trend of passengers moving towards the lower cost end of the market.
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