Jetstar and Avalon Airport?

[PoppaJo]

Jetstar's government bailout for its Avalon operation ends next week. A few months ago it either the government funds the losses or the operation closes as of next week, leaving the Airport vacant.

We have heard nothing? The staff based at the airport are also sitting on the fence. Nobody knows next week if they still have a job. Pretty poor form from both Jetstar and the Andrews government.

[Lookleft]

Pretty poor form from both Jetstar and the Andrews government.

I would say that it is typical of Jetstar and the Andrew's Government. The first thing the staff will hear is messages of regret from Management that they tried all they could but the business model didn't stack up.

[Gear in transit]

I think the first the staff will know about it is when their carpark passes don't work to let them in the gate.....

JQ: oh we closed AVV last week, didn't you get the revised roster changes?

[Chocks Away]

Absolute amateurs and shonks, both of them! :ugh: ...utter disgrace!

[CurtainTwitcher]

Absolute amateurs and shonks, both of them!
You see somewhat surprised...

[TwoFiftyBelowTen]

Crikey, they've got that sizable population of Geelong all to themselves, and they still can't make it viable?

[Popgun]

Crikey, they've got that sizable population of Geelong all to themselves, and they still can't make it viable?

Most punters are apparently driving a bit further up the road to an even cheaper fare out of Tullamarine.

If the local community REALLY wanted the service they had to support it.

Airlines, just like most businesses, are not charities.

PG

[Jethro Gibbs]

Apart from the fact they took a $5.5M handout from the State Gov. and around $2.75M from Linfox and then withdrew services anyway the year is nearly up so up up and away.

[airspace alpha]

As of today Tuesday 21 April JQ have a 48 hour sale with AVV-SYD and $39 OW. Travel dates 12 May thru 25 June.


Incidentally $39 x 180 seats equals $7,020 potential revenue or $14,000 for a RT. Good luck with that.

[PPRuNeUser0198]

They don't sell all the seats at $39.00. Multiple fare types across the aircraft. And yield management in play to do all possible to meet route prof. expectations for this market...

If the 'punters' are not going to support JQ ex AVV, and the Government won't subsidise losses - then JQ has every right to redeploy assets to markets that deliver returns.

[AT 2]

I agree with T-Vasis. If Jetstar were making money out of Avalon, they wouldn't be wanting to leave. Clearly, there's not enough demand to drive the fares high enough.

Additionally, there's no QF mainline presence in Avalon so Jetstar don't have anyone else paying their bills for them there. Much better to operate out of Mum & Dad's house in Tullamarine. :ok:

[wheels_down]

They don't sell all the seats at $39.00. Multiple fare types across the aircraft. And yield management in play to do all possible to meet route prof. expectations for this market…
Go to the Jetstar website, punch in AVV-SYD random date next month, and select "50 Passengers". $50 airfares are available.

So selling nearly 1/3 of the aircraft at $50 a pop. :eek:

[PPRuNeUser0198]

Yield management at flight level is performed daily. It is unlikely they would sell 50 in a block like that. The system has mechanisms to amend pricing based on demand, booking curve, time, targeted results etc. 50 today does not mean 50 tomorrow.

[Jethro Gibbs]

Bla Bla Bla so when will they announce the departure from Avalon .

[Dale Hardale]

The death wish might have been a bit premature - looks like JQ will be at Avalon for the foreseeable future.

[moa999]

10-yr deal.
Govt kicking in $12m
Linfox some too.

Adding two new routes over next 18 months
Increase daily flights from 5 to 7

Avalon Airport victory: Jetstar adds destinations under 10-year deal | Geelong Advertiser (http://www.geelongadvertiser.com.au/news/geelong/avalon-airport-victory-jetstar-adds-destinations-under-10-year-deal/story-fnjuhovy-1227323033289)

Nothing about the rail link which you would think might have been supported with a 10-ur deal

[wheels_down]

I have flown in/out of Avalon 6 times now over the past month. All flights sub 100 pax, one had 20 pax. I only paid $80 return with baggage, even of a Friday night returning Sunday night.

What a waste of money. Give up and close it down.

When's the rail link to Tulla coming Dan….:D

[hiwaytohell]

Something wrong with the Jetstar's business model if the Government still needs to subsidize a major route like SYD after 10 years.

Subsidies for small remote towns like western Queensland I get, but Geelong/Melbourne - SYD.... really?

[Kiwiconehead]

Another waste of money - could have spent it on a train to Tulla.

[Chocks Away]

"When is the rail link to Tulla' coming Dan" ...:}:}:}
Dodgy Dan can't even run a Chook raffle! He's just about to pay a contractor over 420 Million NOT to build something Melb desperately needs. What an absolute oxygen thief moron! More TAXES inbound! Tulla rail link needed? Long overdue but good luck dealing with the huge aggressive taxi unions.

"Something wrong with Pornstars business model..."
No surprises their! :ugh: The Irish Git's little golden child has never been able to stand on its own two feet without raping it's parents cookie jar!

Yes agreed, the Avalon rail link /siding SHOULD have been announced with it. Not only for pax but for freight also, as there's a huge cold store planed for freighters! The rail plans & design are all ready to build but you're now dealing with an unorganised Union run Govt that has no idea on budgets nor infrastructure investment. Heck both QLD & Victoria are already in dire straits!

[Hempy]

They built a train station under Tulla, it's still there but blocked off at both ends. Blame the cabbies..

[PoppaJo]

They built a train station under Tulla, it's still there but blocked off at both ends.

It must be untrue. I just cannot imagine such insight and forward thinking by a government! :}

[Di_Vosh]

PoppaJo

Absolutely! Remember the original Tullamarine "Freeway"?

DIVOSH!

[B772]

moa999

What you are saying is the tax payers of Victoria are kicking in $12M. Only a fraction of the Victorian tax payers will be using Avalon.

[Jethro Gibbs]

The tax payers of Victoria are kicking in $12M its madness .

[TBM-Legend]

Jetstar cuts flights = PPRUNE whinge

Jetstar increases flights = PPRUNE whinge

Govt spends money on aviation = PPRuNe whinge
:rolleyes:

[no one]

Nicely said TBM

[le Pingouin]

Ya forgot: Govt spends no money on aviation = PPRuNe whinge

[The name is Porter]

So how does the government decide which companies it's going to prop up & which ones it couldn't give a rats arse about? Jetstar is such an amaaazing business yet it runs bludging to the government for support. Maybe they should sell their muffins & toasties on the corner of Elizabeth & Flinders to subsidise their amaaazing Avalon operation.

[Ollie Onion]

^^^^ everything you said is bollocks! Jetstar doesn't give a cr*p about services from Avalon airport. Basically the entire LOW COST business model all over the world is built around going cap in hand to local airports for subsidies for an operation. Ryanair are masters of opening and shutting bases when local airports refuse to continue subsidies. I can imagine the local government responsible for Avalon have been trying to attract ANY RPT operator who is willing to provide jet services direct from Avalon. I would say that the response from the carriers has been 'no thanks, not worth our time', that means the only way to ensure the services is too pay some money. Make no mistake, without the subsidies NO jet carrier would be interested.

Out of interest, there are constant stories in the media regarding the allocation of rights between small regional airports and main cities, what is the difference between these subsidies and what has happened in Avalon??

[Iron Bar]

Jetstar are very conscious of maintaining a "critical mass" of aircraft to maximise the economies of scale. This includes the international operations in NZ, Singapore, Vietnam, Japan and "Hong Kong" (Ha yeah right, wankers).

Anyway, they would rather keep a marginal or loss making, but subsidised route and keep the aircraft flying to maximise the efficiency of the whole operation, then make the BIG money elsewhere, allegedly.

[TBM-Legend]

Subsidies! Let's not talk about the billions into a failed car industry or work for the dole subs and destroyers not to mention the unmarried mothers brigade!

A few bucks to keep a service? Trains/trams/buses all run a a big loss too and no whingers...

[moa999]

They built a train station under Tulla, it's still there but blocked off at both ends. Blame the cabbies..

Complete urban legend

[The name is Porter]

^^^^ everything you said is bollocks!

I agree. (I agree)

[le Pingouin]

It's nothing to do with propping up Jetstar but all about propping up Geelong and retaining an amenity.

How many jobs does the presence of Jetstar provide for the locals?

How much is the amenity of having an air service worth to the locals?

There's the opportunity it provides for other things to develop.

[PPRuNeUser0198]

Avalon was once a viable market for Jetstar. The early days. With Tiger operating from Tullamarine - this changed everything. The low-cost consumer who was prepared to travel to Avalon, no longer needs to.

Further over-capacity ex Tullamarine, drove fare levels down to within reach of the low-cost consumer - once again providing them with a choice.

Tullamarine offered the frequency that Avalon could not.

[Jethro Gibbs]

Avalon CEO claimed 300 a few weeks ago now the Gov claims 200 lol Doing what complete Bulltish .

[PoppaJo]

50 people tops.

[le Pingouin]

50 people tops.

$1.2million a year for 50 jobs? Cheaper than being directly employed by the government and a whole lot better than a work for the dole scheme.

[planeloader]

There is NO station under Tulla Airport,there are tunnels for maintenance but nothing the size for a station or train.

[B772]

le pingouin

The word on the street is that Bill Kelty a Director of Linfox was instrumental in getting his mates at the Victorian Government to assist with propping up Avalon.

After QF engineering left and without Jetstar Avalon would be quieter than Port Cook and and be a drag on Linfox financially.

[Bagus]

It would be more effective if Gov could have subsidise Gull service bus to Tullamarine.

[moa999]

Would have been more effective by rerouting the rail line, or building an umanned shuttle, to go along with this 10yr deal