Qantas to exit Hamilton Island

[scibo10]

With Qantas's again imminent departure from Hamilton Island, to be replaced by Jetstar, I am interested in everyone's views regarding Qantas's strategy of replacing some domestic Qantas mainline segments with Jetstar.
I have a mixed emotions regarding this. As a Qantas shareholder, I can see the merits of Qantas pursuing such a strategy of trying to minimise their cost base, however noting the risk of alienating loyal customers. However, as a frequent Sydney-Gold Coast traveller, I have experienced this frustration first hand of having to choose only between Jetstar or Virgin, or paying double for the cheapest Qantas ticket, on the 2 flights on offer per day.
Prior to the introduction of Velocity, when Jetstar and Virgin had identical prices, I leaned towards Jetstar, given I then had access to the Qantas Club. However, I am now of the opinion that maybe Qantas's strategy should not be supported, gven that such support may lead to the future possibility of Jetstar pricing at current Red-e-Deal prices, and Qantas becoming merely an upmarket airline offering only Flexible rate economy tickets and business class. Plus, with the Velocity points earned flying Virgin, some rebate on the ticket is offerered in the form of points.
I feel this would be a great opportunity for Virgin, if they are really serious about attracting business customers, to introduce a business class (which has been hinted by Branson should he wrest control of Virgin again).
Your thoughts?

 

[Yada Yada]

I guess QF has little choice but to substitute JQ on "holiday" routes to compete with DJ. They just can't compete in full service mode without cutting service further and I feel that they have already gone a little too far.

I agree that DJ has a good opportunity here to steal some of QF's business pax by introducing a J class. They already are a cut above JQ in terms of service and product offering. JQ is a real LCC whereas DJ seems to sit somewhere between JQ and QF. If they introduce a J class and decent lounges, and eventually join *A, this would be a serious threat to QF mainline.

 

[markis10]

Might be also an opty for Mr Stoddard, after all a weekend business class flight to HTI would be appreciated by those moving on to Hayman etc, and good use of assets in a quiet time.

 

[NM]

Might be also an opty for Mr Stoddard, after all a weekend business class flight to HTI would be appreciated by those moving on to Hayman etc, and good use of assets in a quiet time.

You might well be onto something here. If O7 could offer something in conjuntion with 7-day accommodation packages, they may well be able to get more than a handful of passengers on a single weekly flight to HTI.

 

[N860CR]

They also run the risk of getting loyal Qantas (not so much business, more high frequency leisure) customers upset by forcing them to endure Jetstar.

3 years ago I would never have pictured myself on a DJ aircraft, let alone a frequent traveller with them, however with JQ taking over most of the routes I frequent (and after going through hell with them already) I've waved goodbye to QF and now all my flights (including those routes serviced by QF) are on DJ.

JQ had to happen - QF couldn't keep up with DJ, however they've pushed the LCC thing too far for the pampered Australian traveller to take (it hasn't been that long since it was all about AN, QF and high service) and I think that may ultimatley hurt them quite a bit.

There is definatley a market for O7 on some of these "leisure" routes that now lack any form of real business class.

 

[Yada Yada]

3 years ago I would never have pictured myself on a DJ aircraft, let alone a frequent traveller with them, however with JQ taking over most of the routes I frequent (and after going through hell with them already) I've waved goodbye to QF and now all my flights (including those routes serviced by QF) are on DJ.

JQ had to happen - QF couldn't keep up with DJ, however they've pushed the LCC thing too far for the pampered Australian traveller to take (it hasn't been that long since it was all about AN, QF and high service) and I think that may ultimatley hurt them quite a bit.

Totally agree, danielribo. QF seem to be leaving a large gap in the middle that DJ is filling comfortably.