30 August 2010

Airlines just shadow boxing, says analyst

Ben Sandilands, writing his Plane Talking column, says there are some odd things going on in the latest domestic air travel war in Australia, where Jetstar won the headline honours this week with a 50 percent increase in seat numbers across ââ¬Ëœselectedââ¬â¢ routes.

The Jetstar 50 percent-more-seats announcement emphasised routes from Melbourne and Sydney, but not between Melbourne and Sydney.

ââ¬ÅâœEven on the Melbourne-Brisbane side of the golden triangle Jetstar is only going to lift its frequency from two to three A320s a day from December 10, which leaves it with a trivial presence on the route,ââ¬~ Sandilands notes.

ââ¬ÅâœThe full picture as to what the air war on domestic routes will be will remain incomplete until Qantas and Virgin Blue show their hands on the high frequency and higher yielding inter city routes.

ââ¬ÅâœThis is not to say this is necessarily a ââ¬Ëœphoney warââ¬â¢ between Qantas/Jetstar and Virgin Blue, nor that it is a bad thing,ââ¬~ says Sandilands.

ââ¬ÅâœTo the contrary, it is a very good thing for consumers on ââ¬Ëœselected routesââ¬â¢.

ââ¬ÅâœBut it is also a bit like Winston Churchill sending a cable to Hitler giving the Fuhrer three months notice of D-day, and specifying which beaches.ââ¬~

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