Wirraway
23rd Jan 2004, 08:55
Fri "Australian Financial Review"
Jetstar postpones revealing it's routes
Qantas has delayed announcing the route network for its new low-cost carrier Jetstar because it wants to provide its pricing structure at the same time.
After its launch in December which provided investors with an insight into the cost, concept and colour scheme of Jetstar stockmarket punters have been waiting for the detail of how Qantas plans to take on arch rival Virgin Blue at its own budget carrier game.
Jetstar was due to announce its route network at the start of February, but has postponed this to coincide with the details of the pricing structure, due for release towards the end of February.
``We've decided it's better to package the two things together . . . so when interest is generated people will be able to book pretty much straight away,'' Jetstar chief executive Alan Joyce said.
Australia's biggest airline is entering the low-cost domestic market to try to claw back customers from Virgin Blue, which started only three years ago and now has 30 per cent market share. Virgin Blue is forecasting a $150 million profit for 2004.
Jetstar is due to being flying in May. Mr Joyce said preparations were going to plan.
The budget airline is finalising negotiations with airports on landing fees, airport charges and marketing support. Mr Joyce would not comment on which airports Jetstar would be flying into.
But as Jetstar approaches takeoff, Australian Federation of Travel Agents chairman Ian Carew-Reid has called for the airline to alter its commission policy.
Jetstar is aiming for majority internet bookings and has structured the fees for travel agents in such a way that customers booking through them will pay more.
For example, a $100 website ticket will cost $110 if booked by telephone or through a travel agent, with the agent taking the extra $10 as a commission.
Mr Carew-Reid said this would discourage customers from using an agent and called for Jetstar's policy to be more in line with Virgin's, which charges the same price over the internet as through an agent, giving the agent a 5 per cent commission on the price of the ticket.
Meantime, Qantas's New Zealand operation will add two new routes to its domestic network. From April, Qantas will begin flying Boeing 737s between Christchurch and Rotorua and Christchurch and Wellington.
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Jetstar postpones revealing it's routes
Qantas has delayed announcing the route network for its new low-cost carrier Jetstar because it wants to provide its pricing structure at the same time.
After its launch in December which provided investors with an insight into the cost, concept and colour scheme of Jetstar stockmarket punters have been waiting for the detail of how Qantas plans to take on arch rival Virgin Blue at its own budget carrier game.
Jetstar was due to announce its route network at the start of February, but has postponed this to coincide with the details of the pricing structure, due for release towards the end of February.
``We've decided it's better to package the two things together . . . so when interest is generated people will be able to book pretty much straight away,'' Jetstar chief executive Alan Joyce said.
Australia's biggest airline is entering the low-cost domestic market to try to claw back customers from Virgin Blue, which started only three years ago and now has 30 per cent market share. Virgin Blue is forecasting a $150 million profit for 2004.
Jetstar is due to being flying in May. Mr Joyce said preparations were going to plan.
The budget airline is finalising negotiations with airports on landing fees, airport charges and marketing support. Mr Joyce would not comment on which airports Jetstar would be flying into.
But as Jetstar approaches takeoff, Australian Federation of Travel Agents chairman Ian Carew-Reid has called for the airline to alter its commission policy.
Jetstar is aiming for majority internet bookings and has structured the fees for travel agents in such a way that customers booking through them will pay more.
For example, a $100 website ticket will cost $110 if booked by telephone or through a travel agent, with the agent taking the extra $10 as a commission.
Mr Carew-Reid said this would discourage customers from using an agent and called for Jetstar's policy to be more in line with Virgin's, which charges the same price over the internet as through an agent, giving the agent a 5 per cent commission on the price of the ticket.
Meantime, Qantas's New Zealand operation will add two new routes to its domestic network. From April, Qantas will begin flying Boeing 737s between Christchurch and Rotorua and Christchurch and Wellington.
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