In a strategy switch, Qantas Airways and its low-cost unit JetStar will share their first common route when JetStar launches trans-Tasman flights to New Zealand in December.
JetStar will replace Qantas on its Melbourne and Brisbane routes to Christchurch, and will launch a new Gold Coast-Christchurch service. But for the first time JetStar will compete directly with its parent on the Sydney-Christchurch route.
Until now, Qantas has carefully avoided any overlaps with JetStar to prevent cannibalising its own traffic. Qantas hopes product differentiation will minimise traffic erosion. JetStar will offer assigned seats and more in-flight food and drink than on its Australian domestic flights.
Source: Airline Business
