Wirraway
10th Nov 2004, 07:39
AFP
Singapore News »
Time is GMT + 8 hours
Posted: 10 November 2004 1448 hrs
http://www.channelnewsasia.com/imagegallery/store/phpUiTTob.jpg
Jetstar Asia takes delivery of first Airbus 320
Jetstar Asia took delivery of its first plane on Wednesday ahead of its launch in December as the third budget airline to operate from Singapore's Changi Airport.
Jetstar Asia's vice president for operations, Gregory Thompson, told reporters on board the aircraft, an Airbus 320, at Changi that the airline was determined to match the low fares of its rivals.
"The airfares will be competitive obviously and they will be sustainably competitive," Thompson said.
"We will be at the lower end of the low-cost carriers regardless of what it takes."
Thompson, however, stressed the airline's determination to drive down cost would not come at the expense of quality.
"Low cost doesn't mean low class," Thompson said.
Jetstar Asia is expecting two more A320s to arrive in the next few weeks before the airline starts flying in December.
The airline will announce details of its fare and route structure in the next two to three weeks, Thompson said.
Jetstar Asia has said before it will fly to destinations within five hours from Singapore.
The airline is 49.9 percent owned by Australian national carrier Qantas, with the other stakes held by the Singapore government's Temasek Holdings and two prominent local businessmen.
Budget carriers Valuair and Tiger Airways began operations in Singapore this year. Pioneering no-frills carrier AirAsia has also started flying between Bangkok and Singapore although it is not based in the city-state. - AFP
==========================================
Dow Jones
Singapore
Wednesday November 10, 2:25 PM
INTERVIEW: Singapore Jetstar Asia To Fly Far For Mkt Shr
By Abdul Hadhi
Of DOW JONES NEWSWIRES
SINGAPORE (Dow Jones)--Jetstar Asia Airways Pte. Ltd. plans to go farther than its rivals to make up for its late entry into Singapore's competitive budget airline sector, Chief Operating Officer Con Korfiatis told Dow Jones Newswires in a recent interview.
As to how far it will go, Korfiatis said: "Anything within five hours from Singapore is fair game. We are looking at (destinations) as far away as Shanghai in China, Mumbai in India, Perth and Darwin in Australia and anything in between."
Such a route map would differentiate Jetstar Asia from its Singapore-based rivals, almost all of whom focus on shorter routes, such as Singapore-Bangkok and Singapore-Phuket. And if the airline - 49% owned by Australia's Qantas Airways Ltd. - can start flying to China within a year, it will be well positioned to take advantage of the expected traffic boom generated by the 2008 Beijing Olympics.
Yet-to-fly Jetstar Asia expects to start commercial flights in December, or two months after Singapore Airlines Ltd.'s 49%-owned Tiger Airways and six months after Valuair Ltd. - led by former Singapore Air veteran Lim Chin Beng. Regional leader AirAsia Bhd began flying in early 2002.
Valuair - which calls itself a "mid-frills airline" - is the only other operational Asian low-cost carrier, or LCC, planning a flight longer than four hours. In December, Valuair will begin flying to Perth from Singapore - a five-hour flight.
Korfiatis plans another break with the short tradition of LCCs in Asia: Jetstar Asia won't begin with a focus on the Singapore-Bangkok route.
Instead, the airline will start with other destinations, which Korfiatis was unwilling to disclose ahead of getting the traffic rights. He did say, however, that his airline is aiming for "a little bit of differentiation." Bangkok isn't on his mind due to the crowd of LCCs already flying the Singapore-Bangkok route, which is putting pressure on fares and margins. Flights beyond four hours would give Jetstar Asia a "distinct competitive advantage" over its rivals, Korfiatis said.
Other destinations under consideration are places like Bali in Indonesia, Cebu in the Philippines, Hong Kong, the Maldives and other Australian cities besides Perth and Darwin.
In another departure from the style of traditional LCCs, Jetstar Asia will have assigned seating - something only Valuair among the Asian LCCs offers currently.
Unlike many of his peers at traditional carriers, Korfiatis - an industry veteran who has worked at Qantas, Singapore Air and Ansett - said he isn't worried, and is confident the LCC's low cost base will be able to offset the high fuel costs.
Jetstar Asia hasn't hedged its fuel needs as Korfiatis believes oil prices will decline over the coming year.
"We are a startup business. There is no advantage in hedging," he said. However, Korfiatis added that the airline is exploring a hedging policy for future years.
The carrier expects to obtain its Air Operator Certificate, or AOC, within two weeks, keeping it on track to launch commercial flights in mid-December.
"We are telling people to hold off on holiday plans until mid-December. We'll have some attractive fares on the market," Korfiatis said.
After getting the AOC, Korfiatis said Jetstar Asia's next step will be getting the traffic rights, after which the LCC "will be ready to fly,"
Rivals Tiger Airways and Valuair obtained traffic rights within two weeks of getting their AOC.
While analysts view the LCC market as getting crowded, Korfiatis says there's room for a lot more LCCs in Asia.
"There are 50 to 60 LCCs for Europe which has a population about 250 million and Asia, which has a population of 3 billion, only has about 10 LCCs," he said.
Apart from AirAsia, Tiger Airways and Valuair, Jetstar Asia will also have to compete with regional LCCs such as Thailand's Nok Air and Indonesia's Lion Air.
========================================
Singapore News »
Time is GMT + 8 hours
Posted: 10 November 2004 1448 hrs
http://www.channelnewsasia.com/imagegallery/store/phpUiTTob.jpg
Jetstar Asia takes delivery of first Airbus 320
Jetstar Asia took delivery of its first plane on Wednesday ahead of its launch in December as the third budget airline to operate from Singapore's Changi Airport.
Jetstar Asia's vice president for operations, Gregory Thompson, told reporters on board the aircraft, an Airbus 320, at Changi that the airline was determined to match the low fares of its rivals.
"The airfares will be competitive obviously and they will be sustainably competitive," Thompson said.
"We will be at the lower end of the low-cost carriers regardless of what it takes."
Thompson, however, stressed the airline's determination to drive down cost would not come at the expense of quality.
"Low cost doesn't mean low class," Thompson said.
Jetstar Asia is expecting two more A320s to arrive in the next few weeks before the airline starts flying in December.
The airline will announce details of its fare and route structure in the next two to three weeks, Thompson said.
Jetstar Asia has said before it will fly to destinations within five hours from Singapore.
The airline is 49.9 percent owned by Australian national carrier Qantas, with the other stakes held by the Singapore government's Temasek Holdings and two prominent local businessmen.
Budget carriers Valuair and Tiger Airways began operations in Singapore this year. Pioneering no-frills carrier AirAsia has also started flying between Bangkok and Singapore although it is not based in the city-state. - AFP
==========================================
Dow Jones
Singapore
Wednesday November 10, 2:25 PM
INTERVIEW: Singapore Jetstar Asia To Fly Far For Mkt Shr
By Abdul Hadhi
Of DOW JONES NEWSWIRES
SINGAPORE (Dow Jones)--Jetstar Asia Airways Pte. Ltd. plans to go farther than its rivals to make up for its late entry into Singapore's competitive budget airline sector, Chief Operating Officer Con Korfiatis told Dow Jones Newswires in a recent interview.
As to how far it will go, Korfiatis said: "Anything within five hours from Singapore is fair game. We are looking at (destinations) as far away as Shanghai in China, Mumbai in India, Perth and Darwin in Australia and anything in between."
Such a route map would differentiate Jetstar Asia from its Singapore-based rivals, almost all of whom focus on shorter routes, such as Singapore-Bangkok and Singapore-Phuket. And if the airline - 49% owned by Australia's Qantas Airways Ltd. - can start flying to China within a year, it will be well positioned to take advantage of the expected traffic boom generated by the 2008 Beijing Olympics.
Yet-to-fly Jetstar Asia expects to start commercial flights in December, or two months after Singapore Airlines Ltd.'s 49%-owned Tiger Airways and six months after Valuair Ltd. - led by former Singapore Air veteran Lim Chin Beng. Regional leader AirAsia Bhd began flying in early 2002.
Valuair - which calls itself a "mid-frills airline" - is the only other operational Asian low-cost carrier, or LCC, planning a flight longer than four hours. In December, Valuair will begin flying to Perth from Singapore - a five-hour flight.
Korfiatis plans another break with the short tradition of LCCs in Asia: Jetstar Asia won't begin with a focus on the Singapore-Bangkok route.
Instead, the airline will start with other destinations, which Korfiatis was unwilling to disclose ahead of getting the traffic rights. He did say, however, that his airline is aiming for "a little bit of differentiation." Bangkok isn't on his mind due to the crowd of LCCs already flying the Singapore-Bangkok route, which is putting pressure on fares and margins. Flights beyond four hours would give Jetstar Asia a "distinct competitive advantage" over its rivals, Korfiatis said.
Other destinations under consideration are places like Bali in Indonesia, Cebu in the Philippines, Hong Kong, the Maldives and other Australian cities besides Perth and Darwin.
In another departure from the style of traditional LCCs, Jetstar Asia will have assigned seating - something only Valuair among the Asian LCCs offers currently.
Unlike many of his peers at traditional carriers, Korfiatis - an industry veteran who has worked at Qantas, Singapore Air and Ansett - said he isn't worried, and is confident the LCC's low cost base will be able to offset the high fuel costs.
Jetstar Asia hasn't hedged its fuel needs as Korfiatis believes oil prices will decline over the coming year.
"We are a startup business. There is no advantage in hedging," he said. However, Korfiatis added that the airline is exploring a hedging policy for future years.
The carrier expects to obtain its Air Operator Certificate, or AOC, within two weeks, keeping it on track to launch commercial flights in mid-December.
"We are telling people to hold off on holiday plans until mid-December. We'll have some attractive fares on the market," Korfiatis said.
After getting the AOC, Korfiatis said Jetstar Asia's next step will be getting the traffic rights, after which the LCC "will be ready to fly,"
Rivals Tiger Airways and Valuair obtained traffic rights within two weeks of getting their AOC.
While analysts view the LCC market as getting crowded, Korfiatis says there's room for a lot more LCCs in Asia.
"There are 50 to 60 LCCs for Europe which has a population about 250 million and Asia, which has a population of 3 billion, only has about 10 LCCs," he said.
Apart from AirAsia, Tiger Airways and Valuair, Jetstar Asia will also have to compete with regional LCCs such as Thailand's Nok Air and Indonesia's Lion Air.
========================================