View Full Version : Qantas to Jetstar : This does not compute

11th Jan 2004, 08:13
"Australian Financial Review"

Qantas to Jetstar : This does not compute
January 7th, 2004

Costs at Qantas's new carrier, Jetstar, look set to escalate before the budget airline even takes off following Jetstar's decision to use a different reservation and check-in system to that used by its parent.

It is understood that Jetstar, which will launch its fare and route structure later this month and start selling tickets next month, has opted to use a software system called Open Skies.

Open Skies, which was developed by information technology group Navitaire , has long been the software system of choice for low-cost carriers Virgin Blue and JetBlue are both customers because, although it is not as robust as other systems, it is a lot cheaper.

It is not, however, necessarily compatible with the check-in and reservation systems used by Qantas. Its reservations software is provided by large travel global distribution systems supplier Amadeus.

Because the two software systems do not ``talk'' to each other, a passenger travelling domestically with Jetstar but then wanting to connect to a Qantas international flight would have to check in again and possibly change terminals in the process as well as re-check in all baggage.

Although it would be possible for Qantas to allow travel agents using Amadeus's GDS system to link through to Jetstar's system, several difficulties could arise.

Not only would Qantas have to spend money developing bridging software to allow the link but, sources said, it would also need to charge travel agents a small fee.

Amadeus Australia general manager Paul Martin said if Qantas decided not to link Open Skies with Amadeus, passengers could be inconvenienced.

``Your baggage [from a domestic to international flight] wouldn't go all the way through,'' he said.

``Qantas has been pretty decisive about the fact they want to run Jetstar as a totally separate airline in order to keep costs as low as possible, but that may force them to make some decisions now which may not be best in the long term.''

Other industry watchers said that, should the two reservation and check-in systems be kept separate, Qantas might lose customers to rival airline Virgin Blue, if the low-cost carrier could offer comparable fares on Jetstar's routes.

Airline players and equity analysts predict Qantas will cannibalise its existing domestic customer base with the launch of Jetstar.

Australian Federation of Travel Agents chairman Ian Carew-Reid said his organisation was meeting with Qantas over the coming weeks to nut out such issues.

``We want to ensure that travel agents aren't disadvantaged because it'll cost more to book via a travel agent rather than with Jetstar direct via the internet,'' Mr Carew-Reid said.

Qantas Airlines executive general manager John Borghetti said Qantas and Jetstar would be competitive regardless of what systems were used.


Johhny Utah
11th Jan 2004, 15:09
So let me get this right. According to the article:

1) Jetstar costs will rise because they are planning on using the same res system used by Virgin;

Why? This system is used by many other low cost carriers because it is a lot cheaper

2) Jetstar will potentially lose customers to Virgin Blue because they won't be able to seamlessly transfer from QF flights to Jetstar flights (and vice versa), with their luggage having to be rechecked instead of being checked through to the final destination

Why? because customers will choose to fly with Virgin Blue instead, whereby they will have to follow the exact same process anyway...

Interesting logic :confused: - perhaps Travel Agents are running just a little scared at the moment if this is the best they can cme up with...:rolleyes:

bitter balance
11th Jan 2004, 16:44
My favorite part is interviewing the GM of Amadeus for an objective opinion on a lucrative contract his company just missed out on! Maybe they should interview Boeing for an objective opinion on the A320s?

PPRuNe Towers
11th Jan 2004, 21:07
Worked OK in real life.

When BA set up Go it was a true clean sheet operation - every system tendered and up for the best deal. Lo-cost simply don't work if your not released from parent apron strings and schedules.

BA used Aerad charts - Go used Jepp

Fightplanning. Sword at BA and Go went, again, with Jepp. Reservations, met, notams, handling, rostering. Everything was rigorously rethought: even the safety reporting and analysis switched to another supplier. Each new contract was negotiated as a 'bearhug' - we hurt and you'll hurt. In my opinion only the Jepp flightplanning was a poor solution. Inflexible and useless back up relying on the coding ability of a single, old time mainframe DP guy in the States.

The only initial carryover was Sops but they rapidly evolved to suit the low cost/single type operation.

Shocking if you hail from a mature, monolithic operation but by heck it works. A very enjoyable but tiring ride to profit ensued.


13th Jan 2004, 12:58
I know of a really cheap flight planning system we used at NJS ( and still in use I believe ) its called " pilot with pen and paper ":*

16th Jan 2004, 04:25

correct me if I am wrong (as I often am) but didn't VQ use the open skies system when they operated prior to QF takeover - in which case Jetstar will just turn the computer back on! (not much start up cost there):ok: