Jetstar vs Virgin

FINDINGS //

Virgin Australia demonstrates a strategic advantage in the hot meal category, offering options that more closely align with legacy carrier standards, including their premium Creamy Spinach & Ricotta Tortellini.

Jetstar has developed a stronger position in sandwiches, wraps, and toasties, with a more diverse portfolio of these grab and go items.

Dietary Accommodation Strategy

Virgin Australia has significantly improved its dietary options, though Jetstar still maintains some advantages:

Virgin Australia's Improvements:

• Clear dietary labeling system across all menu items
• 4 gluten-free options (increased from 3)
• 6 vegetarian options (increased from 4)
• 3 vegan options (increased from 2)
• Minimum of 5 dairy-free options

Jetstar's Continuing Advantages:

• Superior diversity in sandwiches, wraps, and toasties
• More comprehensive dietary restriction accommodation
• Enhanced vegan and gluten-free certified options
• Greater overall snack variety and selection

Plant-Based Innovation

While neither carrier has fully embraced the growing plant-based trend in its core meal offerings (hot meals or sandwiches), Jetstar maintains its competitive advantage in plant-based snack varieties. Virgin Australia has added a third vegan option (Corn Chips & Salsa), but this category still represents an opportunity gap for both carriers.

Beverage Program Analysis

Pricing Strategy

Virgin Australia now prices soft drinks at $4.75 (a $0.75 increase from the previous menu), slightly reducing but still maintaining a relative price advantage compared to Jetstar's $5.

Premium Beverage Portfolio

Virgin Australia has further enhanced its already extensive alcoholic beverage program, including:

• A wider variety of spirits (now with tiered standard and premium options)
• Expanded cocktail offerings (Batched Salted Grapefruit Margarita, Archie Rose Gin and Peach Soda)
• More diverse craft beer selection (including Balter XPA)
• Enhanced wine selection

This continues to align with their positioning as a higher service hybrid carrier.

Value Proposition Optimisation

Bundled Offering Structure

Virgin Australia has improved its already advantageous meal deal combinations, now delivering passenger savings of up to $3.50 (increased from $3) and offering a wider variety of bundle options.

Complimentary Service Elements

Virgin Australia offers:

• Free tea, coffee, and water on flights exceeding 55 minutes
• Complimentary service items that signal premium positioning

These elements represent strategic brand differentiation rather than pure cost cutting measures.

Strategic Positioning Summary

Virgin Australia's Competitive Advantages

• Full hot meal offering creating legacy carrier association
• Competitive beverage pricing strategy
• Enhanced premium drink selection, including craft beers and cocktails
• More favourable bundled meal economics (now with savings up to $3.50)
• Strategic maintenance of complimentary service elements

Jetstar Competitive Advantages

• Superior diversity in sandwiches, wraps, and toasties
• More comprehensive dietary restriction accommodation
• Enhanced vegan and gluten-free certified options
• Greater overall snack variety and selection

Market Segment Targeting Implications

Virgin Australia presents the stronger value proposition for:

• Premium beverage consumers
• Value-conscious travellers optimising meal deal economics
• Passengers prioritising complimentary service elements
• Families with children (through specialised offerings)

Jetstar offers superior value for:

• Passengers with specific dietary requirements
• Travellers preferring diverse sandwich and wrap options
• Consumers seeking greater overall snack variety
• Plant-based and gluten-free passengers

Conclusion

Virgin Australia has strengthened its overall advantage due to its strategic positioning, which aligns more closely with full-service carrier standards.

This is especially evident in areas such as hot meals, beverage pricing, and complimentary services.

On the other hand, Jetstar continues to offer a greater variety of food options and better catering to certain dietary needs.

Both carriers demonstrate distinct approaches to their onboard retail strategy, reflecting broader positioning decisions within the hybrid carrier segment.