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Wirraway
21st Nov 2004, 13:29
Mon "The Australian"

Jetstar goes west
By Steve Creedy
22nov04

LOW-COST carrier Jetstar will today announce daily services from Adelaide to three destinations as it begins to expand westward.

Jetstar chief executive Alan Joyce will unveil daily services from the South Australian capital to Hobart, Victoria's Avalon Airport and the Gold Coast from February 1.
The announcement heralds a new phase that will see Jetstar establish a national network after spending its first six months consolidating its east coast operations.

"Adelaide is the first new port that we've opened since Avalon," Mr Joyce said.

"It seems like we've been doing a lot and growing a lot, but we started on day one with 13 ports and on June 1 we added Avalon, which was our 14th port. This will be our 15th.

"And then at some stage during the next year we're hoping to have Perth online and go into the Northern Territory in a couple of places."

The low-cost Qantas offshoot flies 17 aircraft. Another three 177-seat Airbus A320s will enter service by the end of January.

It expects to reach its fleet target of 23 planes by July when it will begin swapping out its 14 Boeing 717s, eight of which will transfer to Qantas regional carrier and sister company Qantaslink, for the bigger A320s. It plans to have an all-Airbus fleet by mid-to late-2006.

Mr Joyce said the timing of services to Perth would depend on whether Jetstar won a bid to continue to operate and maintain the Boeing 717s for Qantaslink.

It is competing for the contract against incumbent Qantaslink operator National Jet Systems.

He said winning the Qantaslink contract would mean Jetstar would have to move on establishing facilities in Western Australia and could accelerate the timing of its own services.

Jetstar was keen to win the contract, which would give the carrier additional economies of scale and help lower unit costs.

"They (NJS) are certainly a very efficient operation, they know the market over there and they have the experience of those ports," he said.

"We enter new ports all the time, we have the experience of the 717 aircraft, we have the pilots already trained, we have engineering capability already built up, and there's a lot of start-up costs in doing that."

Mr Joyce said the Qantaslink contract could also make it worthwhile for Jetstar to find work for the other six 717s.

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cunninglinguist
22nd Nov 2004, 06:55
Given a choice between paying to train pilots/engineers and building a hangar/infrastructure on the opposite side of the country, I know what I'd rather pay for.:ok:

Kanga767
22nd Nov 2004, 08:00
Well, yes Mr Linguist, thats one idea.

Then there's the option of doing neither, and picking over a carcass for the bits you need.


K

Buster Hyman
22nd Nov 2004, 11:06
It is competing for the contract against incumbent Qantaslink operator National Jet Systems.
There's something wrong with this industry. Can it honestly be a level playing field when a "private" company tenders against a 100% subsiduary?

Never understood QF, & I guess I never will!:confused:

Wirraway
22nd Nov 2004, 15:41
Tues "Melbourne Age"

Jetstar sets its sights on Adelaide with next round of cheap fares
By Scott Rochfort
November 23, 2004

Qantas's low-cost offshoot, Jetstar, is poised to make its first westward diversion from the eastern seaboard on February 1, after naming Adelaide as its 15th destination.

The airline made its first splash on the Adelaide market yesterday by offering $49 one-way fares between the South Australian capital and the Gold Coast, Hobart and Avalon airport near Melbourne.

But unlike in the lead-up to its May 25 launch - when it sparked a price war after dumping 100,000 $29 one-way fares on the market, seriously denting Virgin Blue's profits in the process - Jetstar would not specify how many cheap tickets it is offering this time around.

The airline's spokesman Simon Westaway would only say it was a "huge number".

Nor would the airline say when - or if - it plans to start services from Adelaide to Sydney or Brisbane, given the airline's general rule of not competing head to head with Qantas on the higher-yielding main city routes.

The airline's services from Sydney and Brisbane to Melbourne, for instance, use Avalon airport, rather than the main Tullamarine airport used by Qantas.

Also adding weight to the theory Jetstar could one day replace Qantas on lower-yielding leisure and non-main city routes, Mr Westaway confirmed the airline would replace Qantas's three weekly Adelaide-Gold Coast services with a daily service of its own.

Heralding the Lindsay Fox-owned Avalon airport as a major success, Mr Westaway said the airport would service 100 weekly flights when it introduced daily flights to Adelaide in February.

In another sign of Jetstar being used as a weapon by Qantas to torpedo Virgin's growing share of the domestic market, Jetstar's new Adelaide-Hobart flights will be on a route so far only operated by Virgin.

"Qantas ignored Adelaide-Hobart for so many years and it's interesting to see Jetstar has suddenly taken an interest," Virgin Blue's head of communication David Huttner said.

Jetstar will start Adelaide services with its Boeing 717 fleet, before it introduces more of its new 177-seat Airbus 320s, of which it will build up from the current three to six in mid-January, and then to 23 by mid-2006.

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