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Jetstar to launch Hong Kong based carrier

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Jetstar to launch Hong Kong based carrier

Old 12th Jun 2012, 05:04
  #121 (permalink)  
 
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I believe that was Korea.
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Old 13th Jun 2012, 06:32
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Maybe they should set up Jetstar North Korea operation... and see how far they get with that too, well while they are in the neighbourhood.
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Old 13th Jun 2012, 08:04
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Dont be suprised if this venture is fully supported by the Chinese while the money is being transferred to China.

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Old 13th Jun 2012, 09:03
  #124 (permalink)  
 
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Why doesn't he make sure the mother of all Jetstar franchises, Jetstar Asia, makes money first?

Cookies must be enabled. | The Australian

After launching a firesale of SGD270 ALL UP one way BUSINESS CLASS on SINPEK, JQ has since reduced SINPEK to 5 weekly (SQ is 28 weekly) and cut AKL to 3 weekly for some weeks in June (back to 4 weekly after that while SQ is daily to CHC and double daily to AKL)

In Singapore, Joyce had himself a very supportive government and airport authority, plus a home airline that was for too long only too happy to cede marketshare to Jetstar and other airlines. And he still can't make money.

In the meantime, the home airline has decided to add 471 seats a day to London through capacity and frequency increases(equivalent to adding an additional A380 per day) in response to QF cutting 2 flights a day to London. The home airline unleashed Scoot, flooding SYD, BKK, Tianjin, Taipei and Tokyo with thousands of seats a day in the next few months. If Jetstar Asia could not make money in SIA's years of retreat from 2004 to 2010, how are they going to make money now that SIA has woken up?

I guess from Singapore's perspective, Qantas Group brings in millions of tourists per year to boost tourism spending. QF should become one of the constituent charities under Singapore's Community Chest, for their charitable works to the Singapore economy for nearly one decade.

But no - Jetstar Asia may not make money but fear not, revenue from Jetstar Japan is now rolling in faster than expected.

I'm not even Australian and this makes me angry. I can only imagine how you Aussies actually feel!

Qantas chief Alan Joyce sets Asian expansion hopes on Jetstar HK joint venture
BY: MICHAEL SAINSBURY AND STEVE CREEDY From: The Australian June 12, 2012 12:00AM
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QANTAS chief Alan Joyce says the China market is a huge opportunity for the company as it builds up its Jetstar Hong Kong joint venture with China Eastern as part of a plan to become the dominant low-cost carrier in Asia.

Mr Joyce said Jetstar had more planes after seven years than European low-cost pioneer Ryanair did at the same stage in its development, and aimed to be as big as his old employer in coming years.

He admitted the Singapore-based Jetstar Asia venture would lose money this year on long-haul routes but said revenue was coming more quickly than expected into its low-cost Japanese start-up.


Jetstar has committed $64 million to the Japanese operation it owns with Oneworld partner Japan Airlines and Mitsubishi.

"We have a smaller shareholding (33 per cent) because of the law," Mr Joyce said. "Revenue is coming in sooner than expected."

But the huge opportunities in Asia lay in China, already the world's second-biggest airline market and set to rival the US in the next decade.


"We believe there are three big markets in China: premium, low-cost, cargo," Mr Joyce said. "For premium we need to turn around Qantas International before we can grow it again. We made a commitment to shareholders we won't put more capital or aircraft into it until it gets to break even and is returning costs over the next three years."

Meanwhile, Qantas's operations to mainland China are limited to just one flight daily from Sydney to Shanghai and the more profitable three cargo flights from Australia to China and then the US and back to Australia.

"We're looking at enhancing (code-sharing) further and working a lot closer with China Eastern," Mr Joyce said.

In the interim, Jetstar is committing $99m in capital to its 50-50 Jetstar Hong Kong venture with China Eastern.

Qantas is optimistic that a new Hong Kong government, a reconfiguration of government departments and review of aviation regulation will work in its favour.

It hopes that will clear the way for approvals for the airline to progress more quickly and says it has been getting strong local support.

Mr Joyce said the biggest resistance was coming from the pilot union, which was paying a consultant to lobby against the move. He said the airline had gone through regulatory approval processes several times and had a team that was dedicated to the process.

It had teamed up with local partners because they knew the local market and Jetstar had taken a comprehensive view of getting as many stakeholders behind it as it could.

"We're optimistic, so we're still on plan for the middle of next year," he said.

Both China Eastern and Jetstar have started allocating people to the project and the airline is already looking at issues such as aircraft allocation, AOC requirements and recruitment.

There was also a commercial team looking at routes and Mr Joyce said the airline could also allocate its Jetstar Japan start-up team to the project after the airline launched next month.
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Old 15th Jun 2012, 02:13
  #125 (permalink)  
 
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Mr Joyce said Jetstar had more planes after seven years than European low-cost pioneer Ryanair did at the same stage in its development, and aimed to be as big as his old employer in coming years.
How can these so-called journalists have any credilbility when they can't even get the basics right? I stand to be corrected but to the best of my knowledge, Alan Joyce has NEVER worked for Ryanair.

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Old 15th Jun 2012, 02:55
  #126 (permalink)  
 
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"and aimed to be as big as his old employer (Qantas) in coming years"

I don't see the inaccuracy.
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Old 15th Jun 2012, 06:23
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He admitted the Singapore-based Jetstar Asia venture would lose money this year on long-haul routes but said revenue was coming more quickly than expected into its low-cost Japanese start-up.
"For premium we need to turn around Qantas International before we can grow it again. We made a commitment to shareholders we won't put more capital or aircraft into it until it gets to break even and is returning costs over the next three years."
Aren't the 787's planned to be based in Singapore? Shareholders must be happy to take losses on Jetstar ventures but not Qantas.
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Old 9th Dec 2012, 18:34
  #128 (permalink)  
 
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Jetstar Hong Kong - Slow Going.

As I have repeatedly said, Qantas/Jetstar doesn't have a snowballs chance in hell of making money out of the Middle Kingdom. Nobody who is not Chinese is allowed to profit from the Chinese people.

Jetstars regulatory woes will continue until:

(a) Its Chinese competitors have made suitable commercial arrangements to compete with it.

(b) The Chinese Government decides it has extracted maximum benefit (Money, Fees, bribes(?), concessions) from the delay.

At that point Jetstar will be asked to invest more money to "secure" its commercial future in China. Qantas will do so.

Some time, perhaps a few years after, Jetstars Chinese partner will take ove rthe wreckage for a few cents in the dollar.

I say again: NO ONE is allowed to make money out of the Chinese people except other Chinese.

and Yes, I know about the Swire Group, but they have been there for 200+ years.


JETSTAR'S attempt to gain regulatory approval for its new airline in Hong Kong is likely to drag on for months, giving its competitors time to up the ante ahead of the planned launch in the middle of next year.

Jetstar Hong Kong made its official pitch to regulators in July - four months after Jetstar's parent, Qantas, and joint venture partner China Eastern unveiled plans for the new airline - in the form of an application for an air operator's certificate, or licence to operate commercial flights.

The airline's backers will not say when they expect a response from Hong Kong's Civil Aviation Department, but sources in China say the final decision will ultimately rest in Beijing and will take some time.

Although Jetstar Hong Kong has the advantage of China Eastern lobbying on its behalf, the mainland airline has a vociferous opponent in Air China, which is a cornerstone shareholder in Cathay Pacific.
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An analyst at CIMB Securities in Hong Kong, Andrew Orchard, said he expected it to be a few more months before the regulators made a decision. ''It seems that, internally [at Jetstar] at least, they are fairly confident that it will go through.''

Jetstar Hong Kong faces competition from Cathay Pacific and other airlines in the region, as well as the challenge of operating at an airport that has not been set up for budget airlines.

China's Spring Airlines has also raised the possibility of setting up an offshoot in Hong Kong.

Cathay Pacific has highlighted in regulatory filings that it is ''possible that conditions may be imposed on any approval given in Hong Kong'' for the new competitor. Its short-haul offshoot, Dragonair, will spearhead the group's counter-offensive.

Dragonair has added six Airbus planes to its fleet this year to meet the needs of its expanding network.

''We have added a total of eight destinations to our network this year, and more are coming up in early 2013, including Zhengzhou, China and Yangon, Myanmar,'' a Dragonair spokesman said.

The Jetstar Group has a project team in place in Hong Kong, which is being led by Nick Rohrlach, an executive manager of strategy at the budget airline. It is well on the way to hiring the first batch of 50 pilots needed for the launch of Jetstar Hong Kong, and it recently began recruiting flight attendants.

China Eastern's vice-president, Tang Bing, has been named chairman of Jetstar Hong Kong's six-member board, which includes two Jetstar representatives in Jayne Hrdlicka and David Koczkar.

Jetstar Hong Kong will begin operations with three A320 aircraft, before expanding to a fleet of 18 within three years. It will initially fly to greater China, Japan, South Korea and south-east Asia.

Read more: Slow take-off for Jetstar HK
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Old 9th Dec 2012, 21:21
  #129 (permalink)  
 
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"Nobody who is not Chinese is allowed to profit from the Chinese people."

What about Volkswagen. And Buick. Or McDonalds. Starbucks. They are not growing in China for nothing I would have thought.
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Old 10th Dec 2012, 03:30
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Qantas can barely even make money in Jetstar Asia where:

1. SIA deliberately went into retreat from 2003 to 2010 and did not fight
2. The Singapore government was a cornerstone investor
3. The Singapore government overlooked the fact that Jetstar Asia was de facto 100% controlled by a foreign airline, and gave it a Singapore AOC and lobbied for Jetstar Asia to foreign governments as if it was a Singaporean carrier
4. Load factors are well over 80%

Good luck to making Jetstar HK work.
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Old 10th Dec 2012, 03:48
  #131 (permalink)  
 
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QANTAS barely seems to be able to make any airline work anywhere which is why they have outsourced all the flying to EK. QANTAS - the world's first virtual airline.
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Old 5th Jun 2013, 07:32
  #132 (permalink)  
 
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Hong Kong Halts Processing Applications for New Airline Licenses



As expected.... if Jet Star wish to play in the back yard of another country, they really should do a bit more research on the Governments regulatory requirements.

Let face it.... CX management sit at the same table as the law makers. They were never going to let this happen.
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Old 5th Jun 2013, 07:39
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Of course AJ assumed he could waltz into Kitty City and just start an LCC and attempt to take away some CX's cream? Fool. AJ will need to be anointed as a Swire Prince before he pulls this one off.
Now, where will he try next? Russia, Maldives, Alaska........
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Old 5th Jun 2013, 07:44
  #134 (permalink)  
 
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Yay!!! Lets all rejoice in the news that an Australian company has failed so spectacularly and hope that no future Australian company tries to expand overseas. Much better to sit around here and watch the aviation industry be handed to the likes of Emirates, Ethiad, China Southern etc.

Even better, lets hope Qantas goes down the drain so we can truly celebrate ........
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Old 5th Jun 2013, 07:48
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No-one is celebrating here Ollie, particularly as the calibre of our "leadership" is yet again so graphically illustrated.
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Old 5th Jun 2013, 07:50
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Correct, as i said in another thread, AJ would need to be a Swire prince before successfully pulling off such an audacious plan. CX, Swires and the Hong Kong Regulator decide who they will allow to operate. Didn't anybody tell AJ about the 'cultural business differences'? Thought he may have learned his lesson from the Vietnam fiasco? Perhaps he should send the two Kiddies from Nam over to Kitty City to sort it out? Then again, I believe they are still held in protection under lock and key down in Mascot.

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Old 5th Jun 2013, 08:04
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There wouldn't be too many on this forum that wouldn't like to see the qantas group expand and increase pilot opportunities. Although in the case of jetstar ventures the opportunities are going offshore. Many on these forums drew attention to the exact issues qantas would face in obtaining an AOC for jetstar in HKG.
The latest media release by the HKG government highlights the total ineptitude of the qantas management who it would seem didn't do due diligence. AJ promises much, ie. qantas red, jetstar HKG but before making the big announcements surely a little more planning should be undertaken.
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Old 5th Jun 2013, 08:57
  #138 (permalink)  
 
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Jetstar HGK is coming.....?

As sad as it was, hard not to laugh when you see the 'Jetstar is coming' bill board in the middle of Hennessy rd Causeway bay.
AJ & co ..... incompetent....wasting money before a deal even remotely had a chance.

"There wouldn't be too many on this forum that wouldn't like to see the qantas group expand and increase pilot opportunities. Although in the case of jetstar ventures the opportunities are going offshore"

.....on decent pay and conditions though....

Last edited by kookaburra; 5th Jun 2013 at 09:00.
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Old 5th Jun 2013, 09:54
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Transport and Housing Bureau

Playing with the big boys now AJ.


(Just noted the link was imbedded in the Bloomberg report. Will leave here anyway.)

Last edited by LapSap; 5th Jun 2013 at 10:11.
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Old 5th Jun 2013, 12:23
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Book it all to Qantas International. Use it as an excuse to ditch more routes.
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