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View Full Version : Jetstar takes off with high hopes


Wirraway
25th May 2004, 15:08
Wed "The Australian"

Jetstar takes off with high hopes
By Steve Creedy, Aviation writer
May 26, 2004

JETSTAR is hoping to capture two-thirds of all new domestic airline passengers as part of a strategy to protect parent airline Qantas' market share from fellow budget flyer Virgin Blue.

Jetstar chief executive Alan Joyce said yesterday the budget airline, which started flying yesterday, hoped to have about 20 per cent of the market within two years, with the Qantas main line dropping back to 45-50 per cent. That would leave Virgin frozen where it is today, with about a third of the market.

"With the aircraft we have on order we could be anywhere between 15 to 20 per cent in two years, with the A320s, and that helps the Qantas group maintain 65 per cent share," Mr Joyce said.

"There's still a line in the sand."

The comments came after Qantas chief executive Geoff Dixon had earlier delivered a blunt assessment of Virgin boss Brett Godfrey's claim that his airline could become Australia's dominant domestic airline player.

"He's dreaming," Mr Dixon told ABC radio.

But Virgin Blue head of strategy David Huttner said the Brisbane-based carrier would continue to grow as it picked up disaffected Qantas customers as well as new passengers. "We're certainly seeing a lot of strong support in the regions where Qantas has downgraded itself to Jetstar," Mr Huttner said.

"In many ways, we see a lot of positive opportunity coming out of this change - and that's true from Rockhampton to Tasmania."

Jetstar launched services yesterday to 13 eastern seaboard destinations using a fleet of 14 125-seat Boeing 717s.

The airline will start adding bigger 177-seat A320 aircraft from July and expects to have an all-Airbus fleet of 23 aircraft within 12 to 18 months.

Jetstar and Virgin will be vying for new business stimulated by lower fares as well as trying to take passengers away from from each other. But this is unlikely to translate into many more of the super-low $29 fares with which Jetstar launched its assault on Virgin.

"Jetstar will be keeping fares, like with the Sydney-to-Melbourne flights, under $100, getting down there at $69," Mr Dixon said.

Mr Joyce estimated Jetstar was starting with about 6 to 7 per cent market share gained from the transfer of the Boeing 717s from Qantaslink. But he conceded Virgin Blue was "a good airline, good competition", which would set prices to avoid losing market share.

"So it's going to be competitive because I think Virgin are going to be after 50 per cent of the growth ... In order for us to keep our share, we're going to have to get 65 per cent of the growth," Mr Joyce said.

Jetstar was scheduled to fly 86 return flights on its first day and a spokesman said on-time performance to 4pm had been good. Passengers on the first flight, JQ371 to Melbourne, turned up at Newcastle airport as early as 3.30am for the historic occasion.

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Wed "Melbourne Age"

Jetstar breakfast - the cost

http://www.theage.com.au/ffxmedia/2004/05/25/jetstar_menu_2605.gif

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Wed "Sydney Morning Herald"

http://www.smh.com.au/ffximage/2004/05/25/jetstarlanding,0.jpg
Jetstar's inaugural flight makes a successful landing in Melbourne. Photo: Craig Abraham

No leg room, warm beer - but everyone's happy
By Alexandra Smith and Scott Rochfort
May 26, 2004

There was no elbowing for a plum window spot or complaints from long-legged passengers about the cosy slimline seats.

Qantas's budget offshoot, Jetstar, had a no-frills feel to it - all but one of the 14 Boeing 717s remain white without a hint of the Jetstar brand - but the new airline had a smooth take-off yesterday.

The carrier completed 86 return flights in eastern Australia, to 13 destinations, from Hobart to Cairns. Not all flights were full but passengers, some of whom paid just $29 for a one-way ticket, were impressed.

"I thought it was a great flight and much better than some I fly in the States," said Tom Boghossian, a Los Angeles businessman who was on the 12.25pm Sydney-Gold Coast flight. Mr Boghossian, who visits Australia every year, described Jetstar as "roomy and so, so smooth".

The in-flight service, with sandwiches, snacks and alcohol for sale, was the only hiccup on that flight, according to two grandmothers who took advantage of the cheap fares to visit family. "The beer was warm, I paid $5 for a warm beer," said one of the women.

Jetstar, which does not allocate seating and has less leg room than Virgin Blue, was launched nine months after its parent, Qantas, first floated the idea of a budget arm to cater for Australia's leisure travel market.

Passengers on the first flight, which left Jetstar's Newcastle's maintenance base, landed in Melbourne and were greeted by Qantas executives and the airline's "mascot", comedian Magda Szubanski.

Jetstar expects to fly 800 flights a week by August, which compares with Qantas's 2500 services and Virgin Blue's 1600.

Jetstar plans to phase out its fleet of B717s by mid-2006, when it expects to have 23 A320s in service. Virgin will boost its fleet of Boeing 737s to 49 by next April. In March, Qantas announced plans to buy five new B737s for its domestic operations.

But there are concerns that Australia's aviation market could soon suffer from an over-supply of commercial aircraft.

On Monday, Virgin Blue reported a sharp decline in the proportion of available seats it filled - from 84 to 75 per cent - in the 12 months to April, as its fleet grew from 29 to 44.

On June 1, Jetstar will begin flights from Sydney and Brisbane to Avalon airport, 55 kilometres from Melbourne.

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Kaptin M
25th May 2004, 22:43
"I paid $5 for a warm beer," said one of the women."

I have a question :O

Do these airlines selling booze, hold licences permitting their staff to sell alcohol - or are they exempt?

Mr Seatback 2
26th May 2004, 06:22
They do Kaptin M - an 'on licence' exists on all aircraft. Not sure if you're trying to pull my leg or what with the smiley face! :D

I like how DJ paints itself as a saviour airline to communities that receive a downgraded QF service (but in some instances, have received an increased Jetstar presence). The Gold Coast is one example.

DJ - just like QF and JQ - is a business. It's a publicly traded company with shareholders, who last time I looked, didn't believe they were investing in a charity. DJ is out to make profits like any company.

Would be very interested to see if they reduce (or even pull out) frequencies into smaller cities as time progresses.

Just sick to death of DJ painting itself as some knight in shining armour. An airline is an airline is an airline. It's a business that flies planes with profit on its' mind.

Wirraway
26th May 2004, 07:18
Wed "Herald Sun"

Jetstar's soft landing
May 26th, 2004

THERE'S a `back-to-the-future' feel about the launch of Jetstar.

Back to the world of two major airlines with a Compass-like discount player trying to muscle in.

Except, of course, everything's different.

Virgin Blue is no Ansett -- it now moves more people through Sydney than Ansett did at its peak, with one-third less planes, much, much fewer staff, using half Ansett's terminal, and making a profit.

And the Virgin-Qantas duo are light years away from the Ansett-Qantas cosy two-airline structure, even after supposed deregulation.

And of course, Jetstar is very definitely no Compass.

Even though it's using a similar fleet -- and indeed, specifically, initially , the planes once operated by the other discount player Impulse.

Most obviously, whereas both Compasses and Impulse went straight for the Melbourne-Sydney (and Brisbane) jugular, Jetstar is doing the exact opposite.

It's aimed at the secondary airports and tourists exiting Sydney and Melbourne.

Because obviously it's aimed at being a segment of Qantas, not trying to pluck key business out of it.

Narrowly, that means it has both a more defined and more survivable future.

It's not going to be in a fight to the death with Virgin (and Qantas).

But equally, it means it won't be Qantas's killer weapon against Virgin. To attack Virgin it would also have to attack Qantas.

Ironically, it's also made Virgin the country's only national player because Jetstar and Qantas are not operationally consolidated.

Someone flying Jetstar Launceston to Melbourne and then Qantas to Sydney has to re-ticket and re-baggage.

Perhaps more potently in the long run, someone flying Launceston to Melbourne and then Qantas to London also has to re-ticket and re-baggage.

Given that reality, whereas before they might have automatically gone Qantas all the way, they might now entertain trying Emirates or Singapore.

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grrowler
26th May 2004, 10:14
Just a comment on the VB menu... it really is very very average. I tried their beef with "lashings of mash" the other day and it was attrocious. When I've got to pay for it I at least expect them to attempt to make it look like food. Jet* shouldn't have much problem beating them on that front.

Here's an idea for all you LCC's out there - why not ask people at check-in whether they will want a hot meal on their flight, take their cash then and print it on their ticket. This would save on time, money and wastage (although I think my food already was waste :yuk: :) )

lame1
26th May 2004, 19:03
I think passengers will have far more to worry about than food selection.High on my list would be SAFETY.Has this aircraft been checked prior to despatch by a LAME.
www.jetsafe.com.au

FFG 02
27th May 2004, 03:51
Any thoughts on how either Jetstar or the Airshow will be affected come Mar 05 @ Avalon?

Fly into the airshow? It would be a helluva lot easier than trying to get in and out of the carpark. But will displays be broken up to accomodate the 25 min turnarounds?