Danaher, Peter J; Roberts, John; Roberts, Ken; Simpson, Alan
This paper describes the use of a marketing science model by Jetstar, a subsidiary of Australia's leading airline, Qantas, to effectively and profitably compete in the low-cost carrier marketplace. We trace the evolution of the Jetstar strategy from a baseline calibration of its initial position, to its efforts to attain price competitiveness and service parity, followed by its highly focused, cost-effective service delivery strategy. We develop a hierarchical model with parameters estimated at...[Show more]
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