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Old 28th Sep 2004, 13:25
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Qantas to launch new Singapore-based budget carrier on Wednesday

channel news asia

Qantas to launch new Singapore-based budget carrier on Wednesday

SINGAPORE : Just when you thought there are already many budget airlines to choose from, another one will be flying into town soon.

Australia's Qantas Airways is due to launch its as-yet-unnamed Singapore-based joint venture budget carrier on Wednesday.

Qantas owns 49.9 percent of the joint venture, while Singapore investment company, Temasek Holdings has 19 percent.

The remaining shareholders are two Singapore businessmen: Tony Chew, with 21 percent and FF Wong, with 10 percent.

Qantas says its chief executive Geoff Dixon will disclose the name, logo and crew of the budget carrier at a news conference on Wednesday.

It declined to comment on whether the airline has received its air operator certificate, which will allow it to operate in Singapore.

Qantas would only say that there are still some pending issues concerning the certificate, and that the application for some routes have yet to be approved.

Previously, Mr Dixon had said that the new airline will initially start flying with four aircraft.

It will then increase the fleet to over 20 planes in the next three years.

The other budget carriers already operating from Singapore are homegrown Tiger Airways and Valuair.

Budget carriers have been sprouting up since Malaysia's AirAsia started an aggressive expansion plan in the region. - CNA

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Old 28th Sep 2004, 15:11
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Tick toc tick toc tick toc....

That's the sound of the clock of impending DOOM for QANTAS - you can only stretch SO far!

Did Qantas learn NOTHING from Ansett?????
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Old 29th Sep 2004, 04:17
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....as-yet-unnamed Singapore-based joint venture budget carrier....

Any bets on Jetstar Asia?? Why be so precious about the name when all and sundry have known for weeks what the baby will be called. But we could be wrong.
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Old 29th Sep 2004, 04:35
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RTA - would that tick-tock be the sounds of Qantas putting ALL of their eggs into oner basket, and therefore being totally reliant on a very small international segment to support them? Thereby putting them at the mercy of any unexpected event that may happen within the regional financial environment (say, for example, another Asian currency crisis?)

OR would that be the sound of Qantas diversifying into another burgeoning market, thereby broadening their revenue base & moving away from a reliance any single revenue source...?

I guess it all depends on where you stand on the glass half full/half empty equation...

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Old 29th Sep 2004, 06:32
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If you do a search on whois, it shows Qantas owns the website url for Jetstarasia. Suprise Suprise

Actually the website has just been activated www.jetstar.com

Whoops www.jetstarasia.com

SINGAPORE, 29 September 2004
Qantas-Backed Singapore
Low Cost Carrier Unveils
Name, Brand, Livery & Uniform
Jetstar Asia

The name, brand, livery and uniform for the new Qantas Airways backed Singapore low cost carrier was unveiled today.

The airline, to be called Jetstar Asia, will be an international regional
extension of Jetstar, the low cost carrier launched by Qantas in the
Australian domestic market in May this year. The airline will be a
partnership between Qantas, Singaporean businessmen Tony Chew and FF Wong and Temasek Holdings.

Jetstar Asia will commence flying to several popular tourist and business
destinations within five hours of Singapore by the end of the year and will
feature a bold and distinctive silver, black and orange livery.

The Chairman of Jetstar Asia and Chief Executive Officer of Qantas Airways,
Mr Geoff Dixon, said the airline\'s strong association with Qantas would
ensure the highest standards of operational excellence, whilst delivering
real savings to customers.

"The new Jetstar Asia brand is indicative of our fresh and vibrant approach
toward low cost travel in the region," Mr. Dixon said.

"We are building a new Asian airline which will feature a brand-new fleet,
Asian hospitality and the operational excellence for which Qantas is famous to create a new, natural and friendly on-board culture."

Mr Dixon said the new uniform was a fusion of Asian tradition and
contemporary design. Based on the traditional Qi Pao, it is stylish,
comfortable and distinctive.

"Low fares, great destinations and our friendly crew will create a
comfortable and enjoyable travel experience, affordable to all. Jetstar
Asia will enable more people to enjoy the speed, efficiency and comfort of
air travel."

Jetstar Asia Chief Operating Officer, Con Korfiatis, said: "It\'s our people
that will really make the difference. Our pilots and crew are enthusiastic
and committed to bring together the best of Asia and Australia, creating a
truly friendly and enjoyable experience for all our customers.

"This is an exciting time to be in the aviation industry and many people
have applied to join Jetstar Asia. The response has been overwhelming."

Mr Korfiatis said that up to 200 jobs would be created when Jetstar Asia
launched by the end of the year.

He said forty five experienced pilots had been recruited and over fifty
cabin crew were currently in training with more to join the airline over
the coming months.

Mr Korfiatis said that Jetstar Asia\'s fleet of brand new Airbus A320
aircraft, which seat 180 customers, would arrive in Singapore from
next month.

"The A320 offers customers the widest cabin of any single-aisle aircraft in
the sky and its stylish and comfortable leather seats will provide extra
comfort. It is a proven and reliable aircraft with low operating costs -
and this means savings for our customers.

"These savings will give our customers the freedom to enjoy the
efficiency and convenience of air travel. They can fly to more destinations more often."

Mr Korfiatis said the Jetstar Asia fleet would comprise four A320s by
January 2005 and build to more than 20 aircraft over the next three years.

Jetstar Asia\'s launch date, routes and fare structures will be announced
upon receipt of an Air Operator\'s Certificate (AOC) and traffic rights.
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Old 29th Sep 2004, 07:27
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AAP

Qantas launches Asian discount airline
September 29, 2004 - 4:49PM

Qantas Airways Ltd chief executive Geoff Dixon said he was confident the new low cost Asian airline launched in Singapore will still be around in three to four years.

Qantas is the major stakeholder in Jetstar Asia, a sister airline to Jetstar Australia, with a 49 per cent interest with other partners including Singaporean businessmen Tony Chew (22 per cent) and FF Wong (10 per cent).

Mr Dixon, speaking to journalists from Singapore, said destinations for Jetstar Asia are still to be confirmed but it will fly to popular tourist and business destinations within five hours of Singapore, which could include Darwin and Perth.

The airline, which is still in discussions for terminal access, should be in the air by the end of the year with four Airbus A320 aircraft - the same plane used by Jetstar Australia.

Mr Dixon, who will be Jetstar Asia chairman, said Qantas had invested $S50 million in the airline to allow it to have a managerial role in the new company.

He said there were three other discount airlines operating in the region but was confident Jetstar Asia will compete successfully.

"I can assure you, I don't know who will be left standing but this airline will be standing at the end of it," Mr Dixon said.

"I don't know where the other airlines will end up, but I can assure you Jetstar Asia and Jetstar Australia will be around in three or four years time.

He said competition will be very tough but Jetstar Asia will differentiate itself by having a cost base that will enable it match the fares of rivals.

He said customer ethos and branding was another point of difference.

"We have done that in Australia with Jetstar and we hope we can do it in this part of the world," he said.

Mr Dixon said up to 200 jobs, including 50 pilots, will be created when the airline starts flying.

© 2004 AAP

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Old 29th Sep 2004, 07:33
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Just saw the website, looking good!!

So when does Virgin Asia start? They today announced Virgin Nigeria and apparently Virgin Pacific is in the pipeline (branch of Virgin Atlantic, not Pacific Blue) so I cant see it being far off if there is a buck to be made. I dont know if its me but its getting all too confusing.
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Old 29th Sep 2004, 07:38
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Haven't read any news of " VN " but have read in a few different news articles that VB is in negotiations with Air Macau.
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Old 29th Sep 2004, 15:36
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Post JetStar Asia?

I dont want to be negative and I rarely post topics on here, but I cannot see JetStar Asia being succesful in the long term, its just too much expansion, even for old GD to contemplate. Sorry but who bets it will be around in 3 years time? I doubt it will, and if it is, it wont be a powerhouse in the region. Just my 2 cents worth.
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Old 29th Sep 2004, 16:36
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Thurs "Sydney Morning Herald"

Qantas plots course with Jetstar Asia
By Scott Rochfort
September 30, 2004

Qantas officially baptised its Singapore-based budget offshoot Jetstar Asia yesterday, prompting speculation the carrier could one day marry parts of its domestic Jetstar subsidiary with its Asian operations in order to slash costs.

At a press briefing in Singapore yesterday, Qantas chief executive Geoff Dixon still failed to provide a list of destinations for the airline due to start services in December.

While he was short on detail, Mr Dixon said: "This is going to be a very, very substantial airline".

Combined with Jetstar's plans to have a fleet of 23 Airbus 320s by mid-2006, the Qantas chief said Qantas could have up to 40 Jetstar aircraft servicing the entire Asia-Pacific region within 18 months.

Jetstar Asia plans to have four A320s in service by January 2005.

Despite the recent entry of low-cost carriers, such as AirAsia, Valuair and the Singapore Airlines part-owned Tiger Airways out of Singapore, Mr Dixon dismissed any notion Qantas had missed the boat.

Noting the anticipated boom in low-cost air traffic across Asia, he said: "I can assure you that Jetstar Asia, indeed Jetstar Australia, its sister airline, will be around in three or four years' time."

Mr Dixon said Jetstar Asia could not name its destinations, given it had yet to gain all necessary regulatory approvals to start services. But he said the five-hour maximum range of Jetstar Asia flights could still take in northern Australia and the bulk of the most populous regions of Asia.

"We'd love to look at India, we'd love to look at China and we'd love to look at a lot of places," he said.

Providing the first sign of the close working relationship between the two Jetstars, Qantas's new Asian airline will start flying with two A320s borrowed from Jetstar Australia while it awaits delivery of its own aircraft.

Despite the speculation about possible synergies between the two Jetstars, Mr Dixon insisted the airlines would have separate heavy maintenance bases.

But some analysts said it was logical for both airlines to share the same name, from a branding point of view, given the large number of Australians who travel throughout South-East Asia.

Mr Dixon said he was confident Qantas would not need to inject more capital beyond its initial S$50 million ($41 million) investment in Jetstar Asia.

Jetstar Asia is 49 per cent owned by Qantas, 32 per cent by Singapore businessmen Wong Fong Fui and Tony Chew, and 19 per cent by the Singapore Government's investment arm, Temasek Holdings.

Temasek, which is Singapore Airlines' major shareholder, also has an 11 per cent stake in Singapore Airlines' low-cost offshoot, Tiger, which launched services this month.

Temasek also took a 3 per cent shareholding in Qantas this month, after British Airways sold its remaining 18.25 per cent stake, fuelling talk of a potential marriage between Qantas and Singapore Airlines.

Tiger now flies to three destinations in Thailand.

Since its launch in May, Valuair flies from Singapore to Bangkok, Hong Kong and Jakarta, and will start flying to Perth in December. Valuair is now in talks to launch services into India and China.

AirAsia, once cited as a possible partner to Qantas or Virgin Blue, launched services from Singapore in February.

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Old 29th Sep 2004, 17:39
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Well, I suspect you're half right RTA, although I don't think Qantas will succumb to outside pressures, rather it will decline in accordance with its own internal plan. Qantas is being overtaken by Jetstar and offshoots. The little children will forcefully push the parent to the background into retirement and take over heading the household. While the brand name might be a common denominator, it appears as though Qantas as a corporation is gradually removing itself from airline operations and becoming an airline financier/investor. The core brand name remains for the time being.
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Old 29th Sep 2004, 21:31
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Gee AoA. Great post?

A man of many words. I wonder why you even bother to post. LIke the labour Party. Short on detail and narrow minded.

Cheers
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Old 29th Sep 2004, 23:23
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Unhappy

To try to put some perspective into what's going on there, one doesn't need to dig too deeply.

Jetstar Asia is 49 per cent owned by Qantas, 32 per cent by Singapore businessmen Wong Fong Fui and Tony Chew, and 19 per cent by the Singapore Government's investment arm, Temasek Holdings.

1) Temasek is Singapore Airlines' major shareholder;

2) Temasek took a 3 per cent shareholding in Qantas this month;

3) Temasekhas an 11 per cent stake in Singapore Airlines' low-cost offshoot, Tiger;

Singapore Airlines is steadily becoming the controlling interest in the South-East Asia Pacific region - I doubt they have the ability to completely control all of the Asian sphere, as there are far bigger competitors with much deeper pockets, in the China/Japan area. So it is my guess that SQ will attempt to dominate the Oceana area - Singapore and south, to cover Australia, New Zealand, and the Pacific island areas eg. New Guinea, Fiji, Vanuatu.
I wonder how they feel about the Mauritius and South Africa part of the world?

JetStar Asia is a convenient further foot into QANTAS territory, for Temasek - SQ's majority shareholder.

So yes, AoA, I believe Dixon is selling QF out to Singaporean interests, and he knows it!
A truly GREAT Aussie CEO, lah!!
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Old 29th Sep 2004, 23:55
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A Toehold in a Hornet's Nest

The question must be asked what is there in it for Qantas? Business diversification in an area of expertise? Spreading risk and seeking additional cash flows? A foothold in South East Asia? Is this a stepping stone into bigger and better things eg joint venture in China? Is GD taking a big risk or just testing the water?

Seems he has some good bedfellows and the potential vehicle to become one of the big players in the fastest developing regions in the world for air travel.

Treat me kindly or I will turn into a cranky Franky.
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Old 30th Sep 2004, 01:08
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They say that the routes haven't been announced yet but any competitor that was worth half their salt wouldn't find it too difficult.
I spent 2 minutes looking and came up with these:

69 jetstar.com.vn 03-03-2004 Qantas Airways Limited
70 jetstarasia.com.vn 03-03-2004 Qantas Airways Limited

The first one takes you to the site that is the same as the Australian site the second one is not active. Nevertheless both Vietnam domains owned by Qantas
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Old 30th Sep 2004, 01:31
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Kaptin M.

You sit down lah, have drink lah !!
Very true words, but I suppose Temasek Holdings are very shrewd these days about where to invest their S$$, especially after the debacle where their 25% shareholding in Air NZ was whittled away to under 4 %.

Johnny Utah, true about diversifying and it could work either way.
A burgeoning market is a definite possibility but obviously a risk that very shrewd businessmen in each country are prepared to take.
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Old 30th Sep 2004, 03:14
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Almost all of the pilots are ex-Ansett 320 drivers. Some have resigned from QF mainline and others have left secure Asian carriers (flying 340/330) to join.

Big things ahead Jet*ching-chong and bigger planes also!!

HAVE FUN FELLA'S!!
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Old 30th Sep 2004, 04:14
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Devil

"Almost all of the pilots are ex-Ansett 320 xxxxs" - people with proven track records, eh E.P.!!

Well if any of you QF drivers were unsure which direction GOD - undoubtedly following Oldmeadow's advice - has you headed, putting ALL of the available info. together, you shouldn't be, any longer.

What DOES amaze me, is the EXTRAORDINARY expense airline so-called "management" will go to today, to save a mere fraction of what they outlay, by replacing existing staff with cheaper labour.
Mind you, the majority of the staff cuts will come from the front-line staff, whilst the numbers behind desks, in Bullsh!t Castle INCREASE.

Say "Thanks" to the "ex-Ansett 320 xxxxs", QF pilots!
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Old 30th Sep 2004, 04:15
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To date Hoo Froo Poo from SIA has been relaxed about all this. Somebody mentioned a hornets nest earlier; Id compare this QANTAS move to Saddam stirring up George in Texas!
Expect the full wrath of corporate hidings and dont for a minute think they will end in Asia! This move just may further impact ALL of us in OZ.............


bzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz
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Old 30th Sep 2004, 05:19
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"He said forty five experienced pilots had been recruited and over fifty cabin crew were currently in training with more to join the airline over the coming months."

Does that number include the Cadets? If so, a little bit of false advertising.
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