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Wirraway
25th Mar 2005, 11:05
Sat "Sydney Morning Herald"

Jakarta slams door on Jetstar
By Scott Rochfort and wires
March 26, 2005

Qantas's struggling Jetstar Asia operation suffered another body blow this week after the Indonesian Government said it would block foreign low-cost airlines from flying on key routes into the country.

Just one week after Jetstar Asia said it would have to lease out half of its fleet of eight Airbus A320s after failing to gain access into several key markets, Indonesia said it would permanently block low-cost carriers from flying into Jakarta, Medan, Surabaya and Bali.

But Jetstar Asia's problems do not only lie in being barred access into Indonesia and China.

After just two months the airline canned its services to Pattaya, Thailand, and it is unlikely its new double daily service to Bangkok, which started on Wednesday, is profitable.

Click here for FULL story (http://www.smh.com.au/news/Business/Jakarta-slams-door-on-Jetstar/2005/03/25/1111692625053.html)

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Point0Five
25th Mar 2005, 13:24
It's Merpati and I'll die if I want to :cool:

MkVIII
25th Mar 2005, 13:46
So, I take it by the LACK of route structure that JQ Asia now has, that it is limited to doing $59 laps of the Changi perimeter track? :p Do punters still have to be there 30 mins before hand for such excursions?

"JQ Asia - Beware the Ides of March!"

Old Smokey
25th Mar 2005, 14:23
Indonesia is a fairly large country made up of thousands of islands, and viable air transport is absolutely ESSENTIAL for the country. Any interferance with the viability of the incumbent Indonesian operators is not just a threat to their viability, but a threat to the development of a struggling country which desparately needs to maintain these services. The government's attitude is first, provide a service, and, it's quite OK if you make a profit whilst you are providing a service. Such service implies scheduled operations to destinations of low/poor financial returns, but bolstered (subsidised) by profitable destinations on the key routes. Kill the few profitable destinations for the Indonesian incumbents, and you've detroyed the entire country's airline system.

If Jetstar et al want to do their bit, and provide a SERVICE to the hundreds of other far less economically attractive destinations, then good! But then, it's not about SERVICE is it, it's all about making a quick greedy buck from the few profitable destinations in an otherwise poor country.

You can call the Indonesian government whatever you want, corrupt, inefficient, ineffective, anything you want, and some of it will probably be correct. The one very effective thing that they've done in the National interest is to keep the looters out.

For the record, I am not Indonesian, and have absolutely no ties with Indonesia whatsoever. In fact, Garuda is one of our competitors.

Old Smokey

Eimar Moron
25th Mar 2005, 22:40
This little foray into JetStar Asia should give us all an indication of how smart Dixon really is, as a CEO.
His forte is screwing STAFF to boost the bottom line.

No guesses for who's going to end up paying for this expensive gambit.
Even the amateurs here on Prune were advising against the foolishness of this venture when it was first mooted.

Onya Dicko :mad:

Eimar Moron

Mr.Buzzy
26th Mar 2005, 00:19
Would be nice if our government provided similar protection!

bbbbbbbzzzzzz... I still rikey dimsim....bbbbzzbzzzzzbz

Old Smokey
26th Mar 2005, 03:59
They used to Mr.Buzzy, it was called the Two Airline Policy.

It was unfair to the genuine entrepeneurs, but effectively kept the looters and 'fast buck' wannabees off the major routes.

But that's all history, from an era when the government had the NATIONAL INTEREST at heart.

Old Smokey

Sheep Guts
26th Mar 2005, 20:20
This probably means the door is shut on all the other players in Singapore aswell, so all the LCCs in Singa will recieve the same "Gut Punch" . No Bali belly aleast~:)

Sheep

Going Boeing
27th Mar 2005, 00:24
The obvious reaction from neighbouring countries such as Singapore, Malaysia etc is to take away landing rights from Indonesian LCC's. With Temasek having money invested in Tiger & J* Asia, I can't see the Singaporean Goverment sitting back & doing nothing. GB :cool: