Jetstar n Air Asia dirty dancing?

[denabol]

Haven't seen this on the main media yet.

Qantas/Jetstar/Air Asia about to get friendly – Plane Talking (http://blogs.crikey.com.au/planetalking/2010/01/05/qantasjetstarair-asia-about-to-get-friendly/)

Who is going to get screwed which way?

[Left Wing]

JET* is about to outsource its flt dispatch dept.... they are learning lessons frm AA

[j3pipercub]

So which one is 'baby'

Sorry

[thrustpig]

BBs' Golden Rule >>Absolute lowest cost, at any cost!!

[airsupport]

It is now.......... :ok:

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JETSTAR and Malaysia-based low-cost carrier AirAsia have formed an alliance which the airlines say will reduce costs, pool expertise and result in cheaper fares.

The airlines said the key to the agreement was a proposed joint specification for the next generation of narrow-body aircraft.

Both airline groups will also investigate opportunities for the joint procurement of aircraft.

Qantas Airways chief executive Alan Joyce said the non-equity alliance would give Jetstar and AirAsia an advantage in the Asia-Pacific region, one of the world's most competitive aviation markets.

"Jetstar and AirAsia offer unmatched reach in the Asia Pacific region, with more routes and lower fares than their main competitors, and this new alliance will enable them to maximise that scale,'' Mr Joyce said.

"The aviation market in Asia is a growth market, and has proven resilient over the past 12 months despite the tough operating environment, with significant growth in passenger numbers forecast in the region.

"This partnership will ensure that both airlines can capitalise on these growth opportunities.''

AirAsia Group chief executive Tony Fernandes said a common aircraft type specification in terms of the next generation narrow-body offering should be proactively pursued by both airlines because of the many efficiencies it would bring.

"With joint purchasing power it means that we can potentially work with airline manufacturers on the right configuration and design of an aircraft specifically for AirAsia and that best suits our operational needs for the future,'' Mr Fernandes said.

"A strategic arrangement with Jetstar focussed on investigation of operational synergies is a logical development for us.''

[thrustpig]

"operational synergies"=Air Asia Skipper@240K Malay Ringet/108K Sing/81K AUD Per annum.

[DrPepz]

S$108k (which is about A$90k) after tax = S$102k
A$90k after tax = A$68k = S$81.6k

I can tell which I'd really prefer!

[RedTBar]

S$108k (which is about A$90k) after tax = S$102k
A$90k after tax = A$68k = S$81.6k

I can tell which I'd really prefer!
Not to mention which city has the lower cost of living as well.

Now if we could only outsource our board somewhere from India or Asia and pay a lot less for the privilege!

[PPRuNeUser0161]

So where does this leave the Tiger?
SN

[Left Wing]

in a cage... where they belong...an airline being run by an MD with no clue about aviation..:ugh:

[neville_nobody]

Any airline exec that thinks that pilot labour costs are cheap in Asia should inquire into how much money they spend on pilot training.:ok:

[Left Wing]

how much money they spend on pilot training... the airline spends ZERO in terms of training cost... since the pilots pay for it all .. including type rating.... the cost of tail strikes and poor airmanship ... well no CFO see that .. since its "covered" by insurance ... :ugh::ugh:

[Metro man]

You'll find the insurance companies increase their premiums for those with regular claims so ultimately the airline itself pays.

Also the disruption of having flights cancelled due to aircraft being U/S costs.

Too many incidents and people start avoiding you (unless you are so cheap they can't resist) when it comes to booking a trip.

Air Asia have their own flying school, bond their pilots for years and pay low salaries in return for a licence. Tiger pay better but don't pay for the licence or rating, there by having no financial risk if someone fails to qualify.

[RedTBar]

The race to the bottom continues with increasing momentum.

There will always be someone who will buy a ticket because it is cheap and there will always be someone who will take a job regardless of the pay.

[rit]

Is this sharing resouces agreement include pilot exchange??? Or allow AA pilot to fly J* A320 and vv in the future?? :rolleyes:

[tiptoeturkey]

"operational synergies"

Read the fine print.

'The benefit to both will happen in year 10.'

Now this has to be a joke somewhat.
But why?

The characters at the table looked more then sheepish at the press conference.
Neither looked at each other with any interest.
A bit like one of those weddings where the Bride and Groom didn't want the marriage, but had to go through with it.
But the divorce was like, ... next week. And no conjugal rights tonight...(mind you they are all very unattractive and more akin to fn themselves).:O

[neville_nobody]

how much money they spend on pilot training... the airline spends ZERO in terms of training cost... since the pilots pay for it all .. including type rating.... the cost of tail strikes and poor airmanship ... well no CFO see that .. since its "covered" by insurance ...

I think you might want to check your facts. There are some very big flying schools in Australia funded by Asian airlines. Some airlines even give their blokes jet practice in bizjets. Then they go do the endorsement in the sim after that. Asian pilot training is big business in Australia.

There will always be someone who will buy a ticket because it is cheap and there will always be someone who will take a job regardless of the pay.

How many pilots in Australia would take a job with an airline who paid for the ENTIRE cost of training from day one, bypassed GA, and got to fly a new jet for say 50% less money than say Jetstar?? I reckon they would be inundated.

[The Mr Fixit]

Is there anyone in this forum who actually has trust in what Darth's apprentice says ?
I'm afraid I am more than a little concerned with this latest turn of events

[aulglarse]

fixit, one of those concerns could be AirAsia codesharing flights with JQ and end up operating the flight, not to mention the point of origin to OZ and back. :ugh:

[Metro man]

Good point if you booked a Jet* flight expecting to fly on a Singaporean aircraft and ended up on an Air Asia Indonesia aircraft instead. Would your travel insurance still be valid in the event of an accident if one of the usual warnings about Indonesian airlines was current ?

[bonvol]

How many pilots in Australia would take a job with an airline who paid for the ENTIRE cost of training from day one, bypassed GA, and got to fly a new jet for say 50% less money than say Jetstar?? I reckon they would be inundated.

Sadly you are right. I know of a couple of young blokes just finishing their commercial who would have given their left one for this "opportunity".

Flying is seen as a "glamour" desirable job by the young and enthusiastic budding aviators. There will always be heaps of them to replace the burnt out demotivated unengaged dinosaurs.

I think in 30+ years in this game I have seen a possible pilot shortage for about a few months. That was when Rex was having all the trouble keeping drivers as they were nicking off to better jobs. Dont hear Rex complaining about the pilot shortage anymore.

[Mstr Caution]

Good point if you booked a Jet* flight expecting to fly on a Singaporean aircraft and ended up on an Air Asia Indonesia aircraft instead.


The punter should note at the time of booking that the service will be operated by a Jetstar partner airline.