Qantas & Jetstar reduce capacity

[Platy]

They are not the only airline to play this game. Why do you think all announcements come with a 'subject to regulatory approval' footnote? If they get caught out, they would not be the first airline caught out either.

Regulatory approval is subject to a predetermined set of criteria and processes, which carry a known timeline, broadly speaking. Thus the risk can be managed and the product delivered providing the supplier (airline) is compliant.

The purchase of a landing slot in an open market is a far riskier challenge, with unknown probability of success and uncertain costs.

In essence, the provision of a landing slot is a show stopper which is only partially under the airline's control, but regulatory compliance is totally in the airline's control.

Thus promising a service subject to regulatory approval just ain't the same beastie as promising a service assuming the slots will be forthcoming.

Methinks perhaps that the arrogant mob in Coward St assumed that they could maintain one or the two NRT slots and assign to the planned JG service.

Yes you are right, QF/JQ may not be the first to get caught out, but it still smacks of incompetence.

 

[NM]

... but regulatory compliance is totally in the airline's control.

Perhaps with the exception of SQ wanting to operate SYD-LAX services

 

[Platy]

Perhaps with the exception of SQ wanting to operate SYD-LAX services

Must admit I was interpreting "subject to regulatory control" as licensing operations (CASA approvals, etc).

I haven't yet noticed SQ promote their planned SYD-LAX service

 

[ANstar]

flights are now available for sale on jetstar.com

 

[oz_mark]

Regulatory approval is subject to a predetermined set of criteria and processes, which carry a known timeline, broadly speaking. Thus the risk can be managed and the product delivered providing the supplier (airline) is compliant.

The purchase of a landing slot in an open market is a far riskier challenge, with unknown probability of success and uncertain costs.

It may or may not be a case of purchasing on the open market. They have applied for a transfer from Qantas at this point in time. One would assume that they have had advise around doing this.