Wirraway
28th Feb 2004, 01:15
Sat "Courier-Mail"
Qantas eyes Asia for budget air service
Peter Morley
28feb04
QANTAS is looking to South-East Asia to establish a discount airline similar to its new domestic low-cost carrier, Jetstar.
A Qantas source – buoyed by the huge demand for scheduled as well as $29 promotional seats Jetstar will offer from May 25 – said: "Don't be surprised if you see us open a discount airline in another place – South-East Asia".
"The matter is under very serious consideration. I will not go into too much detail but it is highly likely that Jetstar is not the only low-cost airline that we find ourselves associated with."
The high-level source said Qantas had to grow or "just sit on its backside and become a utility".
"Those at the top are determined to grow the airline, make it stronger and seize the opportunities available to it," the source said.
"We have a wonderful reputation around the world and we are sought after all around the world."
Since Jetstar announced it would fly from Brisbane, Sydney and Melbourne to 10 eastern state destinations, travellers have snapped up nearly all the promotional $29 fares the new airline's entry generated.
While Jetstar offered 100,000 seats for travel between May 25 and June 30, rival low-cost carrier Virgin Blue countered putting 200,000 seats on at the same price but for travel from May 1 to June 30.
"Welcome to competition," Virgin Blue chief executive Brett Godfrey said when flamboyantly announcing that his hugely successful airline would "match Jetstar's 100,000 and raise you 100,000".
Last night, the only $29 flights still available with Jetstar were Brisbane to Mackay, Rockhampton and Newcastle. Virgin Blue was still offering Brisbane to Melbourne, Newcastle and Mackay.
With flights costing less than the average taxi fare to Brisbane Airport, both airlines were confident they would sell out today.
So what happens with fares from June 30 when the introductory and counter offers end and both airlines go head to head while Qantas continues to operate some of the routes the low-cost carriers are fighting over?
The Courier-Mail yesterday checked fares the three airlines are offering on the Internet and found the lowest was Jetstar, which says it has taken more than 20,000 bookings at everyday rates.
Although Internet fares can change according to demand, Brisbane to Hobart flying Jetstar on July 11 was quoted at $149, Qantas $195 and Virgin Blue $220.
Travel on the same day from Brisbane to Cairns was listed at: Jetstar $119, Qantas $150 and Virgin Blue $159.
Jetstar will charge $89 for travel to Mackay on July 15, Qantas $102 and Virgin Blue $149.
On September 20, a Brisbane to Melbourne (Avalon Airport) flight on Jetstar will cost $99, $149 on Virgin Blue and $190 on Qantas. Virgin Blue and Qantas land at Tullamarine, much closer to inner Melbourne.
Jetstar maintains that these fares will continue to be their everyday rates and are not another promotional start-up stunt.
If this is the case, then Virgin Blue will have to review its fares downwards because it has declared it will not be beaten on price.
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Qantas eyes Asia for budget air service
Peter Morley
28feb04
QANTAS is looking to South-East Asia to establish a discount airline similar to its new domestic low-cost carrier, Jetstar.
A Qantas source – buoyed by the huge demand for scheduled as well as $29 promotional seats Jetstar will offer from May 25 – said: "Don't be surprised if you see us open a discount airline in another place – South-East Asia".
"The matter is under very serious consideration. I will not go into too much detail but it is highly likely that Jetstar is not the only low-cost airline that we find ourselves associated with."
The high-level source said Qantas had to grow or "just sit on its backside and become a utility".
"Those at the top are determined to grow the airline, make it stronger and seize the opportunities available to it," the source said.
"We have a wonderful reputation around the world and we are sought after all around the world."
Since Jetstar announced it would fly from Brisbane, Sydney and Melbourne to 10 eastern state destinations, travellers have snapped up nearly all the promotional $29 fares the new airline's entry generated.
While Jetstar offered 100,000 seats for travel between May 25 and June 30, rival low-cost carrier Virgin Blue countered putting 200,000 seats on at the same price but for travel from May 1 to June 30.
"Welcome to competition," Virgin Blue chief executive Brett Godfrey said when flamboyantly announcing that his hugely successful airline would "match Jetstar's 100,000 and raise you 100,000".
Last night, the only $29 flights still available with Jetstar were Brisbane to Mackay, Rockhampton and Newcastle. Virgin Blue was still offering Brisbane to Melbourne, Newcastle and Mackay.
With flights costing less than the average taxi fare to Brisbane Airport, both airlines were confident they would sell out today.
So what happens with fares from June 30 when the introductory and counter offers end and both airlines go head to head while Qantas continues to operate some of the routes the low-cost carriers are fighting over?
The Courier-Mail yesterday checked fares the three airlines are offering on the Internet and found the lowest was Jetstar, which says it has taken more than 20,000 bookings at everyday rates.
Although Internet fares can change according to demand, Brisbane to Hobart flying Jetstar on July 11 was quoted at $149, Qantas $195 and Virgin Blue $220.
Travel on the same day from Brisbane to Cairns was listed at: Jetstar $119, Qantas $150 and Virgin Blue $159.
Jetstar will charge $89 for travel to Mackay on July 15, Qantas $102 and Virgin Blue $149.
On September 20, a Brisbane to Melbourne (Avalon Airport) flight on Jetstar will cost $99, $149 on Virgin Blue and $190 on Qantas. Virgin Blue and Qantas land at Tullamarine, much closer to inner Melbourne.
Jetstar maintains that these fares will continue to be their everyday rates and are not another promotional start-up stunt.
If this is the case, then Virgin Blue will have to review its fares downwards because it has declared it will not be beaten on price.
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