The future of Jetstar International
Quite a while ago I shared on this forum my simplistic interpretation of Jetstar and their potential, regarding future route structure and profitability.
In regards to their route structure, they have been very predictable and quite conservative.
As far as profitability goes, well I’m 99% sure they are making a operating loss on all sectors but finding true figures with what is happening in regards to all of Qantas’s operations is very hard at present.
There are so many stacks of cards being held so very close it’s hard to see anything, but I will attempt to share the latest with you.
Like I have already mentioned Jetstar International are losing money on all routes, this of coarse is not worrying QANTAS they are looking at the long-term picture. Which includes Jetstar being sold down to a 51% holding but with APA remaining majority stakeholder.
Jetstars fleet on the other hand will surprise some but not all I feel.
Over a breakfast meeting yesterday with some regulatory gentlemen they confirmed my companies suspicion Jetstar might yet not operate the 787.
Our best estimate is all of the Qantas's A330's will go to Jetstar, for the main reason Jetstar haven’t got the man power or ability to take on a new type in the present climate. Also by having only A320 and A330 the crews can be crossed qualified which will help with their training bottlenecks and shortage of crew.
If you are a QANTAS pilot and you think this is good news, don’t be too sure, you may not be getting the 787 either.
At this stage the 787 is a very valuable asset with a shortage of frames world wide, so don’t be surprised to see them all leased out to the highest bidder and QANTAS stuck flying old equipment to cover their current route structure.
All of this is very subjective of coarse and with the industry in a constant state of flux it may have all changed by the time I finish typing this but my employer and subsequently myself are both very confident Jetstar will be sold off and they wont be getting the 787. They will remain to grow and be a fairly big player in the region but not necessarily with Qantas by their side, it may turn out to be someone with a distinct Asian flavor who is also heavily into Airbuses
Cheers