Wirraway
2nd Dec 2004, 13:28
Fri "Sydney Morning Herald"
Bargain alert - Jetstar's Asian start-up runs short of time to sell tickets
By Scott Rochfort
December 3, 2004
Jetstar Asia's first passengers are likely to score themselves a bargain, with the Singapore-based Qantas joint venture giving itself only one week to sell tickets for its inaugural flights.
After taking delivery of its second and third Airbus 320s yesterday, the airline confirmed its first tickets would go on sale next week for three yet-to-be-disclosed destinations it plans to be servicing from mid-December.
"Ideally, we would have liked a longer selling period," Jetstar Asia's chief operating officer, Con Korfiatis, said.
But given the airline was only able to formally apply for traffic rights to various air routes after receiving its air operator's certificate on November 19, Mr Korfiatis said Jetstar Asia had no other choice.
If it had waited until February to launch, Jetstar Asia would have missed out on the busy Christmas holiday period, which he said was the perfect springboard for Jetstar to establish itself as an Asia-Pacific brand name.
After setting out plans last week to fly to Shanghai, Hong Kong, Taipei, Pattaya, Jakarta, Surabaya and Manila by late February, Mr Korfiatis said: "We're very confident that we've got very good flying for all the aircraft."
The managing director of the Centre for Asia Pacific Aviation, Peter Harbison, said it was likely Jetstar Asia would have to offer tickets at very low prices.
"You can probably anticipate they will be coming on with a big splash," he said. In comparison, Jetstar Australia sold its first tickets 10 weeks before launching in May.
Mr Korfiatis said the next vital step in Jetstar's planned three-year growth phase to a fleet of 20 aircraft would not only be to tap into the burgeoning demand for air traffic in Asia but to see further liberalisation of the Asian aviation market.
Amid recent murmurings that India could free up more of its highly regulated aviation market, the further loosening of airline rights and visa restrictions between Asian countries was one of the key topics of conversation at last week's ASEAN forum in Laos.
It is unclear whether Jetstar Asia's entry will trigger an airfare war like that its Australian cousin triggered with Virgin Blue in late February, when it dumped 100,000 $29 one-way tickets on the market.
Only two of seven destinations already nominated by Jetstar Asia - Jakarta and Hong Kong - are serviced by the other two budget airlines based in Singapore - Valuair and Tiger Airways, partly owned by Singapore Air. AirAsia operates flights into Singapore from Phuket and Bangkok.
After launching flights to Perth this week, Valuair said it would not respond by cutting fares if Jetstar entered its routes anyway.
"It would be pointless for most carriers to have a full-on price war because the carriers would run themselves into the ground," Valuair spokesman Nilesh Pritam said.
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Bargain alert - Jetstar's Asian start-up runs short of time to sell tickets
By Scott Rochfort
December 3, 2004
Jetstar Asia's first passengers are likely to score themselves a bargain, with the Singapore-based Qantas joint venture giving itself only one week to sell tickets for its inaugural flights.
After taking delivery of its second and third Airbus 320s yesterday, the airline confirmed its first tickets would go on sale next week for three yet-to-be-disclosed destinations it plans to be servicing from mid-December.
"Ideally, we would have liked a longer selling period," Jetstar Asia's chief operating officer, Con Korfiatis, said.
But given the airline was only able to formally apply for traffic rights to various air routes after receiving its air operator's certificate on November 19, Mr Korfiatis said Jetstar Asia had no other choice.
If it had waited until February to launch, Jetstar Asia would have missed out on the busy Christmas holiday period, which he said was the perfect springboard for Jetstar to establish itself as an Asia-Pacific brand name.
After setting out plans last week to fly to Shanghai, Hong Kong, Taipei, Pattaya, Jakarta, Surabaya and Manila by late February, Mr Korfiatis said: "We're very confident that we've got very good flying for all the aircraft."
The managing director of the Centre for Asia Pacific Aviation, Peter Harbison, said it was likely Jetstar Asia would have to offer tickets at very low prices.
"You can probably anticipate they will be coming on with a big splash," he said. In comparison, Jetstar Australia sold its first tickets 10 weeks before launching in May.
Mr Korfiatis said the next vital step in Jetstar's planned three-year growth phase to a fleet of 20 aircraft would not only be to tap into the burgeoning demand for air traffic in Asia but to see further liberalisation of the Asian aviation market.
Amid recent murmurings that India could free up more of its highly regulated aviation market, the further loosening of airline rights and visa restrictions between Asian countries was one of the key topics of conversation at last week's ASEAN forum in Laos.
It is unclear whether Jetstar Asia's entry will trigger an airfare war like that its Australian cousin triggered with Virgin Blue in late February, when it dumped 100,000 $29 one-way tickets on the market.
Only two of seven destinations already nominated by Jetstar Asia - Jakarta and Hong Kong - are serviced by the other two budget airlines based in Singapore - Valuair and Tiger Airways, partly owned by Singapore Air. AirAsia operates flights into Singapore from Phuket and Bangkok.
After launching flights to Perth this week, Valuair said it would not respond by cutting fares if Jetstar entered its routes anyway.
"It would be pointless for most carriers to have a full-on price war because the carriers would run themselves into the ground," Valuair spokesman Nilesh Pritam said.
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