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Wirraway
1st Sep 2004, 12:28
AAP

Jetstar blows its trumpet
September 1, 2004 - 7:14PM

Qantas no-frills offshoot Jetstar says it needs to improve its communication to customers about the benefits of its low-cost approach.

Jetstar chief executive Alan Joyce told a Committee for Economic Development of Australia luncheon, that Jetstar would no longer be taking a backward step against criticism that it was not a quality, low-cost, low-fare, passenger-friendly operation.

The airline has copped some criticism from passengers, for example, over its check-in desks closing 30 minutes before a flight.

Mr Joyce said Jetstar, which was launched in May this year, would soon be launching a new advertising campaign featuring actor Magda Szubanski as Julie the Jetstar girl.

Mr Joyce said Jetstar could have done better in its marketing since its launch.

"One of the things is getting to consumers the positives associated with some of the policies, you know, the benefits that on-time performance gives them and why 30-minute close-out was important to us," he told reporters.

"Certainly for us, I think there was a lot that we could have communicated better, and we're very much going to go out and communicate through the advertising campaign about why that's important to us."

Mr Joyce said a new campaign starting at the weekend would be "relatively inexpensive" but declined to give a figure.

"We certainly don't spend as much as Virgin (rival budget airline Virgin Blue) on marketing but we'll recover some market position with this one," he said.

Mr Joyce said Jetstar would use Magda Szubanski a lot more.

"She's been on contract and continues to be on contract. We probably didn't use her as much as we could have," he said.

Mr Joyce also said that Melbourne-based Jetstar would expand its reach to the far north and west of Australia by the end of this year or early next year.

Jetstar was in talks to get access to the airport in Adelaide.

"We're hoping to have a look at Adelaide before the end of the year or early next year," Mr Joyce said.

Jetstar was also looking at Darwin and Alice Springs in the Northern Territory.

"That could happen sometime in 2005," Mr Joyce said.

"We also have the commitment to look at destinations like Townsville and Broome and they'll probably be towards the end of 2005 and Perth around the same time."

Mr Joyce said the company would be taking delivery of 23 aircraft over the next two years so there was a lot of opportunities for the airline to continue to expand westwards.

Jetstar would be focusing on expansion of services within Australia and any expansion to overseas routes could be years away.

Mr Joyce said Jetstar was committed to using both the Avalon (near Geelong) and Melbourne airports as bases for flight operations, but Melbourne airport would continue to be the biggest part of Jetstar operations for some time.

Mr Joyce said Jetstar had managed to offset recent higher oil prices through a fuel surcharge.

"We still managed to maintain significant passenger growth even with our fuel surcharge," he said.

Qantas shares were two cents lower at $3.39 on Wednesday.

© 2004 AAP

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Romeo Tango Alpha
1st Sep 2004, 12:39
I have never been able to fathom the marketing gurus at Jetstar.

First, they create the most nauseating television commercials ever, with good ol' Magda, who can't sing to save her life, and adequately shows that in the parody she is singing. She's also dressed as a marching band leader, which makes about as much sense as Mark Latham. Occasionally, a BAD ad is designed ESPECIALLY as to be so bad that people remember it. In this case, the ads are SO bad, you want to forget them, FAST!

As to Jetstar's choice of colour scheme, well, another great one. You are left wondering is it grey, is it white, is it silver, or is it just dirty? The only thing that stands out is the dayglo orange.

Why don't they just replace the Star on the fin with the Harp of Erin and be done with it?

Jetstar just continually leaves you with a sense of wonderment that entices you to fly Virgin each and every time...

I suggest that J* marketing have a good hard look at themselves and the image they are portraying. J* just seem to do exactly the opposite of what the market trends would suggest Australia wants.

The almost complete and utter NON EXISTANCE of Virgin TV Commercials says a lot in itself.

schweinhund
1st Sep 2004, 19:17
Ha! Thats unprecedented! You and I agree on something, RTA!:}

Romeo Tango Alpha
1st Sep 2004, 22:02
MEIN GOTT IN HIMMEL! That is something! :ok:

The press release just sounds like the dieing throws of a beleagured parrot.

Mr.Buzzy
3rd Sep 2004, 05:49
OK so this "new" airline is making money? A simple question then.... Was the "old" one losing money? Has the Joice/Dicko grand plan really worked or has it just tarted up an already profitable QANTASLink?

Obie
3rd Sep 2004, 10:44
You want low cost airlines?

You got them.

Warts and all.

Sunfish
5th Sep 2004, 22:31
Market Cannibalisation is the reason Jetstar has the image it has. Qantas has done all this for a very good reason.

Cannibalisation is when you market a new product that takes market share from your existing product instead of from your competitors.

It is quite obvious that Qantas was afraid of this happening which is why it has positioned Jetstar in the market as far as possible from its Qantas Domestic product.

The stupid colors, the use of Magda, the nazi check in and boarding procedure, the use of Avalon, and even the B717 aircraft (who wants to fly in a railway tunnel?) is all designed to be as far from the Qantas experience as it is humanly possible to make it.

They want to take market share from Virgin, but at all costs they must prevent their own customers from being tempted.

gaunty
6th Sep 2004, 01:19
Sunfish

The more polite term is "differentiation" and you are quite correct, except the B717/DC9 has a very long and distinguished record in this role in the US. :)

Even so their will be some leakage.

They have/had that problem with the "Red edeals" on QF and that probably won't go away until they get Jet* across the country.

One of the ways they have dealt with it is by doubling the number of FF points required for say upgrade. It was possible to buy a rockbottom fare and upgrade to Business using not very many points.


Obie does it, game set and match.:ok:

Sunfish
6th Sep 2004, 06:29
Yup, they have differentiated their products as mutch as they can to prevent leakage or cannibalisation. I guess they hope that there is more leakage from Virgin then Qantas.

I agree that the DC9/B717 is a proven and safe aircraft. Its just that the fuselage cross section is smaller than the 727/737 and to me it always felt like flying in a railway tunnel.