Wirraway

Fri "The Australian" Late News

Jetstar increases services
October 01, 2004

BUDGET domestic airline Jetstar has announced it will add more than 100 new weekly services to its growing network by the end of calendar 2004.

Jetstar said as part of the 100 new services it will launch a brand new thrice-weekly service between Whitsunday Coast (Proserpine) and Sydney from December 1, 2004.

Additional daily flight services include Newcastle to Melbourne, Newcastle to Brisbane, Hobart to Sydney, Gold Coast to Sydney, Sunshine Coast to Sydney and Melbourne (Avalon)to Brisbane.

Jetstar chief executive Alan Joyce said Jetstar will move to an all A320 fleet by mid-2006 which will number 23 aircraft.

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Sunfish

Surprise surrpise! Newcastle - Brisbane!

What is it going to take for the ACCC to wake up? VB announces direct flights from Broome to King Island, followed by J* announcements of the same flights 5$ cheaper?

Acc wake up! This is the classic definition of predatory pricing!

commander adama

Sunfish

Wake up. The Q has been doing the route for years. Far earlier than VB. With jets as well.

REM

Sunny, I hope your knowledge of things aviation is a lot better than your knowledge of Trade Practices Law.
Firstly the article makes no mention of the proposed fare between NTL and BNE, so how do you conclude predatory pricing?
Secondly, section 2 of the Trade Practices Act states that the Act's object is to promote competition. I would suggest that that is what J* are providing; competition!
Thirdly, your hypothetical example of J* charging $5 less than VB is hardly predatory pricing.
To start with, to establish a case of predatory pricing, the predator needs to have market power. I would suggest that VB has more market power than J*.
The other thing is to establish the purpose for the price cuts.
Is it normal competive behaviour, or designed to drive out the competition?
Contrary to your implication, predatory pricing is very hard to prove, and I don't think that $5 less than the competition would constitute predatory pricing, but rather just being competitive, the very thing the TPA and the ACCC encourages.

HOBAY 3

Don't forget that there is a further A320 to be introduced on Jan 5, so there will be even more announcements before then. We already know from previous announcements that there will be 2 daily A320 flights on HBA-MEL, so look for the 5th A320 to be based in MEL.

Wirraway

news.com.au

Jetstar propels fare war
By GEOFFREY THOMAS
October 3, 2004

WA travellers are big winners in the most savage airfare war to hit our skies as Jetstar starts planning its entry into the market.

Fly Perth to Singapore for just $350 return, or Perth to Broome for just $149 one way as hundreds of fares are slashed to bargain basement prices.

Adjusted for inflation, they are the lowest fares ever offered to West Australians.

A Jetstar spokesman yesterday confirmed the airline's intention to start services to WA from the middle of next year with new 177-seat Airbus A320s.

While coy on start dates for intrastate WA routes, insiders at the airline said that plans for Perth to Broome services catered for later in 2005 – possibly August.

That would make the Perth-Broome route one of the most hotly contested in Australia, with Virgin Blue, Jetstar, Qantas and Skywest competing.

Jetstar is expected to replace its parent Qantas on the route, just as Australian Airlines, Qantas's low-fare international subsidiary, will take over the Perth-Bali route.

Perth-based Skywest Airlines has not matched Virgin Blue's $149 one-way fare to Broome but does have two-night packages, including return airfare, from $517, according to its website.

Virgin Blue has similar packages. It started its 180-seat Boeing 737-800 Broome flights in September with three a week – and will puton an additional Monday service from November 29.

Insiders say they expect the airline to have daily flights by May to coincide with the peak holiday season.

The airline is also considering other WA destinations as its fleet grows.

Tourist analysts suggest that fares on the Perth-Broome route could drop even further than Virgin's current special of $149 one-way when Jetstar enters the market.

On Friday Jetstar launched a huge airfare promotion on the east coast with fares from just $49. Virgin Blue matched the fares late on Friday.

Both Jetstar and Virgin Blue claim to have the lowest seat costs in the industry – half those of Ansett.

Singapore Airlines announced yesterday that it would offer fares from just $350 return plus taxes to Singapore.

Or fly to Bangkok and back for $480 before squeezing in a return trip to Hong Kong for $560 plus taxes.


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