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Qantas becomes a 3 brand operation: FFP, LCC & regional airline. Domestic yields still see pressure

Analysis

A solid result for Qantas Group for FY2010 illustrates a drastically changed company from where it was a decade ago. The only continuing profit centre from those days derives from the near-monopoly the Group has on domestic regional operations, the only area where the Qantas brand has expanded. Meanwhile, the highly lucrative frequent flyer programme (FFP) and low cost subsidiary, Jetstar, have generated all but a few dollars of the Group's profitability over the past difficult year to 30-Jun-2010.

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