Another kick in the guts: Jetstar moves upmarket

[Ultergra]

Oh man, just when you thought, 'seriously, this can't get much worse' Jetstar are starting to move upmarket and away from a full-LCC model.

Quote:
"Jetstar has announced a series of new deals that will enable it to be less like a low-cost carrier and more like its parent, Qantas."

"Jetstar doesn't see any problem with a further blurring of the lines between low-cost flying and traditional full service." :yuk:

"We've had code-share arrangements in place since 2004 with Qantas out of Australia. This is a commonsense next step." :ugh:

Jetstar Singapore route deals and oneworld alliance | Upmarket move (http://www.smh.com.au/travel/travel-news/jetstar-moves-upmarket-20110211-1apef.html)


These stories coming out at a time like this, really only adds more fuel to our fire!

[gobbledock]

It's not really fuel to the fire but more like the continuation of a plan that was set in play before the first JQ aicraft flew for the first time.
QF is only chipping away at its plan to have something like 10% of its fleet in the red and white logo and the rest wearing the orange star. It is not a new plan as it was touted back in 2002 well before the birth of it's bas#ard child took place, do not be shocked.

Is this whole process an absolute disgrace?? Yes to the QF workforce, but to QF management and the shareholder it is a misguided dream come true.

[cynphil]

The Qantas board have a plan!........the problem is that Qantas mainline is not part of that plan!!....it was obvious 6 years ago when Jetstar was advertising in the Financial Rev.....this was not a mistake....it was planned...why advertise in a Business paper for a LC airline...unless in the future you had big plans to change things!!

[Trent 972]

JetStar - Australias New International Airline :uhoh:

(as opposed to a 'QANTAS Group Airline')

[Worrals in the wilds]

Okay, so you have a LCC that is not terribly good at providing even a LCC level of service and you get the same people to do full service, presumably on the same crappy $35K a year. How is that going to work?

If they are doing food service they will also have to increase their turnaround times to get the stuff on and off. If they aren't doing food service then they aren't full service and let's stop pretending. Either way they will have to clean the full service section of the aircraft properly (as opposed to an F/A running around with a garbage bag for ten minutes) which will also add to the turnaround time.

To provide competitive full service you have to provide food, wine and a clean tray table. I don't see that fitting in with the current Jetstar ethos or cost structure. Unlike Virgin, Jetstar's whole campaign can be summarised as 'we're crap but we're quicker than Greyhound'. From a marketing perspective, I think it's really hard to turn that into a saleable full service product. All they can offer is a standard economy product that doesn't suck as badly as their LCC offering and has to compete with the QF and Virgin prices. Even now, if you go to webjet Jestar aren't that cheap.

[TBM-Legend]

It's the 21st Century, all of you who relish the past don't get it.

The customers and shareholders dictate the terms...

Choice means people vote with their feet. The old ways of Govt owned and monopoly controls of the airways are dead and buried...

Philip Morris for example moved from being a global tobacco company to a global food company to stay alive....

If QF the company sees one brand and way of doing business better than another then they should do it.....

[blueloo]

If QF the company sees one brand and way of doing business better than another then they should do it..


Its not exactly working well for them.... Share price down, profits down.....self annihilation isnt exactly a better strategy.

[Cactusjack]

Its not exactly working well for them.... Share price down, profits down.....self annihilation isnt exactly a better strategy.

So true. Don't forget what happenned to Alexander The Great, Napoleon even Hitler, leaders of mass forces who led large forces straight into the ground... If you add Darth and the Leprechaun to the mix it says something about smal men perhaps ?

[sierra5913]

It's the 21st Century, all of you who relish the past don't get it.

The customers and shareholders dictate the terms...

Choice means people vote with their feet. The old ways of Govt owned and monopoly controls of the airways are dead and buried...

Philip Morris for example moved from being a global tobacco company to a global food company to stay alive....

If QF the company sees one brand and way of doing business better than another then they should do it.....

Its just the way the airline industry is moving towards.

IMO, Jetstar will take over all non-business routes and Qantas will end up being a premium carrier serving only premium economy, business and First focusing only on direct US and UK through SIN/BKK routes.

The traveling public on VFR and Leisure want their $299 ow fares.

[John Citizen]

Jetstar will take over

More like Jetstar Asia / New Zealand / Phillipines / India and where ever else they can get cheap labour....

Jetstar Australia giving away work to cheaper offshore pilots has already started

[indamiddle]

worrals, j* cc were initially employed on $38000 p/a.
this was cut back to $32000 some years ago.
staffturnover is huge, no overnights to keep crew interested and they can't afford to live away from home with monthly phone bills of $200

[Sunstar320]

Jetstar are not moving upmarket, wake up folks! They are signing interline/codeshare deals which are "only for the weak" as a EK boss mentioned. You really think they would want to increase there cost base with carriers like Tiger floating around? Tiger has been killing Jetstar Asia for years, which is why they are signing all these deals, to get more feed in Singapore. Jetstar Asia has a cost base in Singapore which is significantly higher than the Aussie ops, yet they are trying to compete with a carrier like Tiger and AirAsia who both have the lowest cost bases on this planet.

IMO, Jetstar will take over all non-business routes and Qantas will end up being a premium carrier serving only premium economy, business and First focusing only on direct US and UK through SIN/BKK routes.

Is that some sort of joke....:ugh:

[Mr. Hat]

Is Alan Joyce actually losing the plot? 6 months ago he claimed airlines were either full service or low cost or they would end up as "roadkill".

Bruce Buchanan said in one report that experienced pilots hadn't faired that well in the simulator then moments later Alan Joyce, on the 7:30 report, praised the experienced pilots of QF 32 stating the QF had some of the most experienced pilots in the world and that this is what makes the difference. Well said!

This man is giving new relevance to the words: Contradiction, Confused, Scared and Desperate.

Is he having a break down?



Qantas attacks Virgin Blue's strategy | News.com.au (http://www.news.com.au/business/qantas-attacks-virgin-blues-strategy/story-e6frfm1i-1225898259769)
SENIOR Qantas executives have taken a veiled swipe at rival Virgin Blue, saying any airline with a "middle of the road strategy" is destined for failure.

Qantas chief executive Alan Joyce says his group's two-brand approach, with full-service Qantas and low-cost offshoot Jetstar, gave the company a unique advantage over other carriers.

He said a clearly differentiated product meant customers knew what they were getting and what they were paying for.
"I'm a firm believer that the middle of the road strategy is not a great strategy," Mr Joyce told the Australia Pacific Aviation Outlook Summit in Sydney yesterday.

"You could end up as roadkill if you sit in the middle of the road for too long.
"I think it is important for you to really define and focus on what your customers are after and what you are trying to deliver to them, and I think with Jetstar and Qantas we do that."

The comments came a day after Virgin Blue commercial executive Liz Savage used the same podium to say her airline wanted to double its 10 per cent share of the corporate travel market dominated by Qantas over the next year.

Ms Savage said the middle ground was "a great place to be" as the majority of customers were there.
However, Jetstar chief executive Bruce Buchanan said at the conference any airline that sought the middle ground would end up battling the two Qantas brands.

"We think trying to be all things to all people is a really tough place to be," Mr Buchanan said.

Meanwhile, Jetstar has announced further expansion across the Tasman with direct flights to Auckland from Melbourne and Cairns.
Jetstar will start a daily service between Melbourne and Cairns in December.


I think i get it.

The focus is to disengage the group by smashing their morale via the outsourcing of jobs. Obsessed with reducing conditions, this man has taken his eye off the ship. Maybe they figure there is no point in trying to engage the workforce in that its too far gone. His old colleague John Borghetti is working wonders over at VB. Morale gets better and better by the day. Good morale=flexible worforce=miracles. On you AJ :ok:.