Qantas to flog JetStar to Tiger!

[blow.n.gasket]

Heard the following rumour along with the soon to be announced departure of Mr Dixon.
Any truth to either?:confused:

[jungle juice]

Rumour 1 Dixon is leaving,well I guess he will the only question is when
although a lot of us would prefer it sooner rather than later

Rumour 2 Is (would) QF going to sell Jetstar to Tiger?
Since Tiger is SIA in another guise then you would have to wonder
why.Unless the rumours are true and J* is not actually making
money but then if you look at the real purpose of J* I doubt it.

[DickyPearse]

Rumour 2 - no hard facts but is it April 1?

Even if J* was loss making, you still wouldn't sell to a potentially strong competitor like SIA.

[Captahab]

Inside word is Alan Joyce to take the reins from Dixon.

Ahab

[QFinsider]

Joyce how in hell is he going to grow mainline, he has been gifted everything form mainline. Original ideas, hardly...More likely more of the same.

Get Gordon Bethune, vision and integrity.

Post Dixon we will see just what the contribution margin of J* actually is.
Not by release of figures, but likely a repositioning of assets.

My hunch is that as a brand it has little impact, its cost however another tihng.

[pondoklabu]

All of this is very subjective of coarse and with the industry in a constant state of flux it may have all changed by the time I finish typing this but my employer and subsequently myself are both very confident Jetstar will be sold off and they wont be getting the 787. They will remain to grow and be a fairly big player in the region but not necessarily with Qantas by their side, it may turn out to be someone with a distinct Asian flavor who is also heavily into Airbuses


I shared this option last April now with Dixon planning for his retirment Jetstars in a state of flux, the reason behind this is have a close look on who are some of the share holders of Orange star and who would benefit most by its sale.

[QFinsider]

Unravelling Orangestar could be very interesting indeed.........

[permFO]

For those who think that Jetstar is about to be sold, disbanded or unravelled- tell 'im 'es dreaming!

[windytown]

I personally wouldn't give much credence to the idea of QF selling J*.

If there was any possibility of a sale to SIA/Tiger then I would ask does it only relate to the Singapore based operation? Possbly with a wet lease arrangement ie combine Oragestar and Tiger Singapore into one AOC a bit like AirNZ did with Zeal operating SJ and NZ.

IF Sinpapore is lose making, J* could pull out of a Singapore base once the Vietnam and Darwin bases comes online.

[AndDee]

J* is not going to be sold off to anyone

[mmmbop]

...but don't be surprprised if they don't get the 787s (or at least as many) as is being sprouted!

[Reeltime]

Dixon sell Jetstar? No way!

However I bet he'd love to sell mainline,that'd be his number one fantasy. Then he'd get his dream job... CEO of the Jetstar Group! :hmm:

[lowerlobe]

.....Let's open Pandora's box here...

What if......Darth left and took J* with him !!!!!!!!

[Buster Hyman]

Your closer to the truth here than you think...


Jetstar are actually selling Qantas to Tiger!;) (You heard it here first!)

[lowerlobe]

Jetstar are actually selling Qantas to Tiger!

.....Buster .....Just thought of something...Try to imagine QF girls wearing that sarong whatchamacallit....

But I don't think so Buster,because I don't think I have to remind you what happened last time an Australian Iconic airline was sold to another overseas airline....:(

...But let's not open that book up again...

[sam.lk7]

i'd guess this is just another rumour of this RUMOUR NETWORK

[Howard Hughes]

I don't think I have to remind you what happened last time an Australian Iconic airline was sold to another overseas airline....
This is the funniest post I have ever read on Prune!:rolleyes:

Jetstar are lots of things, but they are in no way 'iconic', well not yet anyway, let's see what the future holds....;)

[lowerlobe]

Howard..I'm glad you saw a post that you thought funny but....

I was referring to Buster's sardonic post that Jetstar was going to sell Qantas and not the other way around...

Jetstar are actually selling Qantas to Tiger!

Qantas is the iconic airline I was referring to...

[Metro man]

Jetstar are actually selling Qantas to Tiger!

Ryan Air were looking to buy Aer Lingus last year. It could happen ;)

[Going Boeing]

Dixon set up Jetstar to try and keep other airlines from seizing an opportunity to fill a niche section of the Oz airline market - in particular make it difficult for SQ to set up an operation in Oz. It would then be stupidity to sell Jetstar to the SQ subsidiary (Tiger) as it would give them a large market share that is essentially routes gifted to Jetstar from mainline. ie It would be selling mainline routes to SQ via a middle man, and it would come complete with aircraft and crew. Not f........n likely.

[lowerlobe]

Jetstar was set up with 2 aims and one of them was to lower the cost base by lowering wages.


Metro man..How can you sell something you don't own....legally ? :hmm:

[fender]

Let's say Jetstar was not formed. What, if any damage would have been caused to Qantas?
Considering the New and future startups on our shores.
Could it be the demise of QF as was Ansett or would life just go on for the happy few with jobs?

Handing over!!

[lowerlobe]

fender....

The perennial 'What if' questions will be with us forever and because we don't have all the answers we will never know.

How much did it cost to set J* up?
How much does J* rely on QF in financial terms?
What would have happened if QF had spent the J* set up cost instead on improving their product?

British airways have thought up an interesting concept.It is similar to J* but instead of being a LCC it is the top end of the market that BA are targeting.In fact BA pilots are thinking of striking to protect their jobs....

But what if QF had done the same and had business class and a full service Y/C with frequency instead of engaging in the relentless and annoying cost cutting philosophy.

VB is rumoured to be thinking of a premium product as well as the 'cheap' seats and obviously BA thinks it's a goer.....

[B A Lert]

What would have happened if QF had spent the J* set up cost instead on improving their product?

Not a lot. All the product improvement in the world will not alone help Qantas. In concert with other changes such as lower labor costs will. The fact that the FAAA has concluded a new EBA with considerably lesser wage rates and more onerous working conditions for new employees is proof to me that organised labor believes that cost reductions are also required if Qantas as we know it is to survive and prosper.

I dislike Jetstar as much as anyone but its creation was probably necessary because the unions need a wake up call before it was too late.

[another superlame]

I know J* doesn't own any aircraft,they are all owned by QF. J* simply does everything else, albeit on a much lower budget. I was told that if Impulse didn't have the maintenence facility when QF bought them years ago the work would be overseas.
But since it was there and reasonably competitive AJ decided to keep it in house. Because AJ comes from Ryanair where nothing is done inhouse he thinks that is the way to go.
It isn't economical to fly an A320 5000kms empty for a small check. Lucky some one told him

[B A Lert]

Because AJ comes from Ryanair

That's a revelation! I think you'll find the route to Jetstar was via Aer Lingus, American, Ansett and Qantas.

[another superlame]

I had it in my head that he came from Ryanair because J* is a Ryanair clone. I stand corrected on that note.
I will add that you quite often read about J*,Ryanair and AJ all in the one sentence, next time I will not just assume.

[Skystar320]

I know J* doesn't own any aircraft,they are all owned by QF

No sorry, Qantas doesnt own any A320 aircraft they are leased from a variety of sub leasing companies to include


MACQUARIE MANAGED INVESTMENTS LIMITED
CORONET AVIATION AUSTRALIA PTY LTD
RBS AUSTRALIA LEASING PTY LTD
INTERNATIONAL LEASE FINANCE CORPORATION
NIMUE LEASING LIMITED


but Qantas does however own those A330-200 aircraft that are leased to Jetstar until the 787's arrive.

he has been gifted everything form mainline

Everything???? there are alot a pioneer routes Jetstar formed by themselves especially ops out of Avalon!!!!! Avalon - Perth spring to mind

Dixon set up Jetstar to try and keep other airlines from seizing an opportunity to fill a niche section of the Oz airline market

Somebody who probably knows what they are on about. Jetstar was set up to ideally stop other airlines into the market but also to combat Virgin's grow into the lesuire market where QF couldn't compete.

Although personally I tend not to like Jetstar it has its good points of cheap travel and people in jobs.

[lowerlobe]

BALert....
cost reductions are also required if Qantas as we know it is to survive and prosper.

I dislike Jetstar as much as anyone but its creation was probably necessary because the unions need a wake up call before it was too late.

Exactly how is QF threatened?

Have you forgotten about record profits even with the evil unions?

If QF had a quality product with good frequency etc...who or what is the threat?

If you are looking for someone to get a wake up call then management should be on your speed dial BA....

[distracted cockroach]

Is there a legacy carrier that hasn't tried the LCC route?
Granted not all have been successful, but almost all have tried it.
Qantas pilots should have done something about Jetstar in the very beginning...a bit like NZ ALPA did with Air NZ/Freedom to limit it's growth. Freedom shortly to disappear, it's pilots integrated into Air NZ based on seniority in the NZ system
It's too late to complain about Jetstar now when it's well and truely established.
Sorry, but you reap what you sow, and unless there is a major change, you are stuck with it.

[lowerlobe]

distracted cockroach...

You are right in that the horse has definitely bolted and it's far too late to close the barn door.

However,everyone has 20/20 vision in hindsight and although J* is here probably for good it may not be too late to try and stop the situation from getting any worse.....

[distracted cockroach]

I guess, but it's damage control at best.
Must admit to being surprised when Jetconnect took over the Tasman flights from mainline back in 2001(?)
Another case of "nah, couldn't happen to us"?
From what I understand, all of the negotiations so far between NZ ALPA and Air NZ for their renewed contract have been over the "Scope" clause....the one that basically says all flights operated by Air NZ OR JET SUBSIDARIES (>90 seats) must be operated by Air NZ pilots.
That's how important it is seen to be here. The threat to T&Cs is ever present and no-one is immune....look at Cathay and the B and C scales. Sure there seems to be a current pilot shortage looming (if not already biting) but many have been too complacent for too long (I've got a "mainline" job on a 747 or whatever, so nothing can happen to me) Perhaps "unions" have been seen in a bad light, but a lot of that is of their own doing. It is a "big picture" war, and the focus shouldn't be on what hotels we stay in, or how much uniform allowance we get....it is all about whether your job will be secure in 10 years time, or whether it will be being done by someone else who you have let undercut you.
Food for thought, but yeah, for Qantas, I think the horse has well and truely bolted.