Fernando MonteiroQantas or Virgin Blue
June 4th 2008 04:01
One characteristic of Virgin Blue Australia (VBA) is its leisure, holyday customer base. VBAs business section is not so great, though VBA is doing some effort at increasing it.
Qantas (QAN), on the other hand, is strong on business travelling. Business can absorb any price increase, while holidaying people cannot.
This is the main difference between these two airlines. You know, if you have a business such as Woolworths, if there is a recession you still have to buy the bread and butter, milk and such and that takes that business through the bad times. So, for Qantas you would be still travelling, but, with regards to Virgin Blue, you would be scrapping your holyday.
It should be said though, that VBA is a budget airline, fit for a tight budget while QAN, being a full service airline will have to make some forced adjustments.
Times are hard for airlines. Who will do better: VBA or QAN?
Qantas (QAN), on the other hand, is strong on business travelling. Business can absorb any price increase, while holidaying people cannot.
This is the main difference between these two airlines. You know, if you have a business such as Woolworths, if there is a recession you still have to buy the bread and butter, milk and such and that takes that business through the bad times. So, for Qantas you would be still travelling, but, with regards to Virgin Blue, you would be scrapping your holyday.
It should be said though, that VBA is a budget airline, fit for a tight budget while QAN, being a full service airline will have to make some forced adjustments.
Times are hard for airlines. Who will do better: VBA or QAN?
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Comment by Aimzster
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