Jetstar Launches SIN-Osaka A330 Flights

[DrPepz]

3 weekly from Nov. Interesting to see how they'd do considering SIN-AKL has been cut to 3 weekly from daily (even through the busy NZ winter period) and SIN-PEK has been cut to 5 weekly from daily - with no flights on Monday.

Jetstar Asia currently do SIN TPE KIX double daily. Scoot just launched SIN TPE NRT. This is possibly the last slot available under the SIN-Taiwan-Japan ASA, and Scoot has also taken the last NRT slot available in allocation to Singaporean carriers.

Of course they could assign a JQ code and VH aircraft to new flights, but I am not sure if the SIN-Australia-Japan-Taiwan ASA allows for Australian airlines to fly SIN-TPE-Japan with 5th freedom rights between SIN, Taiwan and Japan. However it doesn't seem a 3K coded flight could mount more services to Osaka and Tokyo from Singapore via Taiwan.

Is there any news on why the 3K coded flights to AKL have been switched to JQ codes? I wasn't aware that Australian airlines had fifth freedom rights between Singapore and New Zealand. But it is evident Australian airlines now have fifth freedom rights between Singapore and China, Singapore and Indonesia and now Singapore and Japan.

JQ is selling SINPEKSIN in Y regularly for $200ish SGD one way (all up), and on and off you get a business class special for $270 SGD one way (all up). I cannot see how they're making money.

[busdriver007]

They're not....that what Bruce tried to tell them.......

[dragon man]

The rumour is that since getting A330s Jetstar Asia has lost $60 million . Its only a rumour and i dont know if thats $SIN or $AUS.

[Toruk Macto]

What would Qantas have lost ?

[DrPepz]

For SINPEK on Friday (in 2 days time) the one way economy fare + luggage is SGD274 (ex SIN airport tax) Star class has 265 seats. Assuming 80% load factor, we get revenue to Jetstar of $72,610. Of course, some pax may purchase food, and some won't purchase luggage, so I think that's a fare revenue assumption.

In Star Class, I've never heard of anyone flying Star Class to Beijing with more than 8 people there. However let's assume we have 12 in Star Class. It costs $700 one way. 700 *12 = $8400.

Total revenue is $81,010

There are 1.35 million ASKs from SIN to PEK. That translates to SGD5.9 cents per ask, or US4.72c per ask.

Is the Jetstar SINA330 cost base more than US 4.72c per ask?

From this

Jetstar close to overtaking Qantas as most profitable brand in group | CAPA - Centre for Aviation (http://centreforaviation.com/analysis/jetstar-close-to-overtaking-qantas-as-most-profitable-brand-in-the-qantas-group-45968)

(Right at the end)

Cost per ASK: USD 8.25 cents, +1.7%;
Jetstar: USD 4.91 cents, +2%;

So the Jetstar Group's Cost per ASK is USD 4.91 cents. That's not including the widebody A330 fleet which would probably have a higher Cost per ASK. The cost of operating the A330 ex SIN would not be too different from Australia. The pilots are paid the same, the cabin crew maybe due to the exchange rate will be paid a bit less - even if you assume the cost per hour differential is $5 an hour between the SIN and Aussie base, that is $5 x 11 cabin crew x 8 hours = $440. If it is $10 (very unlikely), the difference is $880, so it's negligible.

In terms of ground handling - SIN ground handling costs are in line with major developed airports including Australia.

If I didn't make a mistake in my calculations (chances are I did, but i hope I didn't), it means that Jetstar needs a near 100% load factor to break even on SINPEK. Or they need to sell lots and lots and *lots* of food and duty free on board.

Chances are it's the same for MEL and AKL as well.

[Normasars]

Dragon Man,

That rumour is just that. JQ hasn't lost any $$$$. QF International has lost that money through creative accounting! :ok:

[wheels_down]

Why can't 3K make it work up there when Tiger can, they both have a similar fleet number. Tiger had some impressive profit forecasts (60-70m off a 20 aircraft fleet) if the Aussie ops didn't kill them financially, and possibly image wise.

Tiger moving into T2 will certainly beef up the competiveness.

[blacksmoke]

3k does work, and is doing very well !! Its the 330 operation thats not doing real well up there.

[PPRuNeUser0198]

The rumour is that since getting A330s Jetstar Asia has lost $60 million

Since when did 3K get A330's?

[DrPepz]

It will be interesting to see how the accounting between 3K, JQ and QF. For a while, 3K operated the SINNZ sectors but now it is a JQ coded flight.

Perhaps if it is JQ coded, it can be subsumed into JQ Australia's cost centre so as a whole JQ Aus + Intl + SIN base looks good.

If it is 3K coded, then it has to be allocated to Jetstar Asia Pte Ltd, which would then show up as a massive loss in their books?

All future A330 flights from SIN will now carry a JQ code, and no longer a 3K code it seems. Again this means that JQ as an Australian carrier is somehow getting lots of fifth freedom rights from Singapore.

Just pure speculation on my part.....

[jarden]

Since when did 3K get A330's?
There has been 3 based in SIN 1 each for MEL/PEK/AKL flights all aircraft are owned by QF with AU regos.

The SIN-KIX flights will connect with the 320 coming up from DRW. So the topend city will have 1 stop flight to both NRT and KIX and connections onto the Jetstar Japan network.

[PPRuNeUser0198]

Incorrect. They're not based in Singapore. Singapore is simply a hub.

These are Australian registered aircraft operating for Jetstar Australia with Australian pilots and with Jetstar Australia crew incorporating the Singapore base.

No 3K crew operate on these services nor do 3K have any control of these aircraft | operation whatsoever.

These aircraft are no different to Qantas aircraft operating through Singapore.

[waren9]

These aircraft are no different to Qantas aircraft operating through Singapore

Except the bit about where QF hasn't managed to con their pilots to take LWOP and go live up in SIN on a pretty average contract to fly the aircraft they would have flown anyway, if they'd stayed at home.

[blacksmoke]

From what I have heard, the boys are doing very well up there re $$$$. Its costing the company alot more than they ever thought it would. There are about a dozen guys from JQAsia either currently there, or training to come across to the 330 I believe. Had a beer with a few the otherday, and they all seam very happy...

[jarden]

If there not based in SIN and its just a Hub there is little difference-its really just splitting hairs. They start their journey in the morning from SIN and return back n the night. I never said they had SIN regos and are SIN owned.

[PPRuNeUser0198]

No different to a Qantas hull then going to London and back...

There is no hull based on Singapore. They all cycle through.

None are operated by Jetstar Asia - the original statement in this thread.