More dollars in aisles than tickets for Jetstar
Source; Geoff Easdown From: Herald Sun May 18, 2011
JETSTAR chief Bruce Buchanan has revealed the budget carrier is making more from in-flight service than ticket sales.
He told BusinessDaily last night that the profit from sales of ancillary items - such as cups of coffee, muffins, baggage and special seat charges - was about $24 a passenger.
This money goes straight to the bottom line.
"One way to look at it is that if we didn't have the ancillary revenue we wouldn't be making any money. We would be losing money," Mr Buchanan said, in a likely reference to the hurt caused by the rocketing price of jet fuel.
In other developments yesterday Jetstar parent Qantas rolled out its biggest gun - the 7.5 million member Frequent Flyer program - opening a new front in its war with arch rival Virgin Australia.
The Qantas loyalty program has been revamped to give Jetstar passengers the ability to earn and burn points, a move designed to appeal to the budget-conscious suits market.
..A new alliance, like the one Qantas has with Woolworths, has been struck with Optus where its subscribers will be able to generate frequent flyer points.
Qantas chief Alan Joyce said the changes will give the airline a competitive edge on other carriers.
Under the changes Jetstar's fare structure will change.
StarClass - the carrier's equivalent of business - will be replaced with a full business product, a move that industry observers say is clearly aimed at Virgin Australia's attempt to lure small and medium businesses.