JETSTAR may have put a hold on expansion into new markets but chief executive Jayne Hrdlicka believes there are significant opportunities within its existing footprint as it enters its second decade.
I would have thought JQ have just completed its first decade of operations. The second decade of operations is still 10 years away.
“The next decade is really exciting for Jetstar because all of the things we’ve done to set ourselves up for success are going to start paying off dividends over the next 10 years as the foundations we set start to really come to life,’’ she said.
Yes, i'd have to agree with you Ms Hrdlicka, youve set the JQ operations "up for success" and you plan to start paying off. But to date your success and paying off the set up costs are a point of contention.
Qantas put the brakes on expansion into additional markets until conditions improved.
oh, I thought JQ and its operating markets are successful. Why the need to put the brakes on such a successful and amazing business.
Media reports over the weekend suggested its New Zealand unit was failing to gain traction with customers against Air New Zealand.
yet another division of the amazing JQ franchise.
We’ve got to earn the right to our customers’ loyalty every day we fly.’
Im afraid Md Hrdlicka is overestimating the loyalty of her customer base. If you have the cheapest fare on the day you'll sell the ticket. Thats hardly related to customer loyalty.
She agrees the Singapore market, where the group is a 49 per cent partner in locally based Jetstar Asia, is flooded with too much capacity that will take “a couple of years” to absorb even if the various players take a measured approach.
ok, so the Singapore business is stuffed for the next few years.
Jetstar HK, a joint venture with China Eastern and local conglomerate Shun Tak, had hoped to start flying last year and had approved the purchase of nine Airbus A320s. It recently sold three of the aircraft but still has six sitting on the ground. Hrdlicka says the aircraft sale is aimed to give the company “greater flexibility in navigating what could take quite a long time’’ as it seeks its air operator’s certificate.
wow, what a reversal. I thought the aircraft were declared operational spares. why the need to sell of required operational spares? Might i say this will probably be the first of many of the operational spares to be sold.
“I think it’s in a really good position for the future,’’ she says. “It’s growing and I think it will be a nice little business.’’
A typical response to the JQ franchises, they WILL be good businesses in the future. What about now?
“We’re delivering very respectable on-time performance — we’re top of the market from an on-time performance standpoint — our load factor is very high, our RASK (revenue per available seat kilometre) and the customer scores from an NPS (Net Promoter Score) standpoint are the highest in the Jetstar Group. They’re on the same level that Qantas would get domestically in Australia.’’
and the profit figures Ms Hrdlicka?
She says the airline has evolved in terms of customer experience, the way it uses its staff and what it sees as its horizons. This has included the use of new technology to improve service for passengers, introducing new planes, such as the fuel-efficient Boeing 787, and in ancillary offerings.
Sounds like the LCC model has failed, each of the above changes are a step closer to the offerings of established full service carriers.
MC