The big winner from Virgin Australia’s move upmarket and away from its low cost carrier roots is Jetstar, according to Qantas Group CEO Alan Joyce.
“As Virgin moved upmarket and increased its fares it’s allowed the opportunity for Jetstar to revenue manage up,” Mr Joyce told The Australian.
Jetstar’s also out-performing fellow LCC Tigerair, now wholly-owned by Virgin, which analysts say doesn’t have the scale or network to properly compete.
According to The Australian article, in the six months to Dec 31 Virgin’s passenger numbers decreased by 350,000 while Tigerair’s grew 150,000.
Jetstar meanwhile added 250,000 passengers over the same period, registering a win for the Qantas Group over its arch-rival.
“Jetstar is seeing benefits because it has a huge advantage over Tiger in terms of scale, in terms of of brand and in terms of positioning in the market domestically and internationally,” said Mr Joyce.