Interesting post Dr P and thanks for it (trust they don't close the thread because of what appears to be a bit of a clash over different points of view.) by and large a good thread
Today's cancelled flights ex SIN:
JQ60 to Darwin again
3K551 to Ho Chi Minh City
JQ8 to Melbourne (the PEK flight is operating though)
3K689 to Kuala Lumpur again
3K697 to Hong Kong
3K665 to Kuala Lumpur again
Also - QF SIN MEL is on many days 40% cheaper than JQ
A fair hit for one day...
possibly a low demand seasonal thing this time of year? (don't have access to any figures right now...)
Also - QF SIN MEL is on many days 40% cheaper than JQ
Is it also possible J class is already well booked or even full and the discounts mainly apply to the aft sections of this class?
I was going to book to Taipei this Sunday, and SQ was trying to charge S$1278 (AUD1100) for the 4h45min flight. 3K is charging SGD560 return. However SQ is now completely full. 3K has seats wide open
One thing I find interesting (product wise) SQ are doing so well to Taipei, I guess they are well established on that route compared to JQ who are only the new kids on the block.. quite a difference in the fares, for me, sounds like a quiet time for the JQ business.
It reminds of the story last week about the progress of J* Japan.
Macquarie Equities estimates Jetstar Japan is losing about $50 million a year as it competes against Peach and AirAsia Japan. Jetstar Japan has grown quicker, and is now about twice the size of AirAsia Japan.
After initially relying on selling tickets via the internet, the airlines are looking to boost ways of encouraging consumers to fly with them in a market where people tend to book through travel agents.
Mr Onishi said Jetstar Japan had been able to
win passengers in the high season but in the low season it was ''difficult to get passengers by the web or direct sales''.
Qantas chief executive Alan Joyce said the budget airline was still on track to become profitable within three years of its launch.
Qantas is also waiting longer than expected for regulatory approval to launch Jetstar Hong Kong, a joint venture with China Eastern.
''We believe we have a solid case that is no different from what our competitors are operating up there,'' Mr Joyce said at the airline conference in Cape Town. ''People really want this because the fares in Hong Kong are too high.''
A new government in Hong Kong has made slight changes in the past month to what it deems a local airline. It has meant Jetstar Hong Kong has had to make changes to its application for
regulatory approval.
Indeed, it appears parts of the J* Asia operations are taking longer than first expected, which burns money. I know
firsthand how Asia varies from country to country (so special, never boring) and I have learned that all of these countries have very unique business cultures. I am not always sure or convinced Australian business leaders fully understand the complete picture up there, contrary to what they say in the business press.
In many Asian countries, people still prefer to use
a Travel agent to book their travel, (group travel is huge) unlike Oz or Europe who seem to be more comfortable with the internet. I guess this may mess with the JQ model in parts of Asia somewhat, which relies heavily on the web back in Aus.
Premium Asian branded carriers are still strong in Asia, many carry the nations hearts, they are patriotic to their counties carrier simply because their local language is spoken, it is a natural draw for them. Other words, although English is widely spoken in Asia, there are a lot of non English speaking Asians, now more than ever, flying and believe it or not, are also comfortable and proud of their languages.
Sometimes I think, the western version LCC model approach applied in some Asian countries may be too brutal for the local business culture...
(disclaimer I know the LCC's are growing in Asia, but for the size of the Asian market I think still very small compared to the LCC grow rate in Europe or OZ) Asia is a lot more complicated.
Here we are again coming up to the end of June 2013 and our business leaders are still talking about "Off-Shoring" this time NZ.
This piece from the ABC tonight was interesting but worrying.. becoming a well worn business trend these days....
It's all over the place....
..