Jetstar's Asian start-up runs short of time to sell tickets
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Jetstar's Asian start-up runs short of time to sell tickets
Fri "Sydney Morning Herald"
Bargain alert - Jetstar's Asian start-up runs short of time to sell tickets
By Scott Rochfort
December 3, 2004
Jetstar Asia's first passengers are likely to score themselves a bargain, with the Singapore-based Qantas joint venture giving itself only one week to sell tickets for its inaugural flights.
After taking delivery of its second and third Airbus 320s yesterday, the airline confirmed its first tickets would go on sale next week for three yet-to-be-disclosed destinations it plans to be servicing from mid-December.
"Ideally, we would have liked a longer selling period," Jetstar Asia's chief operating officer, Con Korfiatis, said.
But given the airline was only able to formally apply for traffic rights to various air routes after receiving its air operator's certificate on November 19, Mr Korfiatis said Jetstar Asia had no other choice.
If it had waited until February to launch, Jetstar Asia would have missed out on the busy Christmas holiday period, which he said was the perfect springboard for Jetstar to establish itself as an Asia-Pacific brand name.
After setting out plans last week to fly to Shanghai, Hong Kong, Taipei, Pattaya, Jakarta, Surabaya and Manila by late February, Mr Korfiatis said: "We're very confident that we've got very good flying for all the aircraft."
The managing director of the Centre for Asia Pacific Aviation, Peter Harbison, said it was likely Jetstar Asia would have to offer tickets at very low prices.
"You can probably anticipate they will be coming on with a big splash," he said. In comparison, Jetstar Australia sold its first tickets 10 weeks before launching in May.
Mr Korfiatis said the next vital step in Jetstar's planned three-year growth phase to a fleet of 20 aircraft would not only be to tap into the burgeoning demand for air traffic in Asia but to see further liberalisation of the Asian aviation market.
Amid recent murmurings that India could free up more of its highly regulated aviation market, the further loosening of airline rights and visa restrictions between Asian countries was one of the key topics of conversation at last week's ASEAN forum in Laos.
It is unclear whether Jetstar Asia's entry will trigger an airfare war like that its Australian cousin triggered with Virgin Blue in late February, when it dumped 100,000 $29 one-way tickets on the market.
Only two of seven destinations already nominated by Jetstar Asia - Jakarta and Hong Kong - are serviced by the other two budget airlines based in Singapore - Valuair and Tiger Airways, partly owned by Singapore Air. AirAsia operates flights into Singapore from Phuket and Bangkok.
After launching flights to Perth this week, Valuair said it would not respond by cutting fares if Jetstar entered its routes anyway.
"It would be pointless for most carriers to have a full-on price war because the carriers would run themselves into the ground," Valuair spokesman Nilesh Pritam said.
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Bargain alert - Jetstar's Asian start-up runs short of time to sell tickets
By Scott Rochfort
December 3, 2004
Jetstar Asia's first passengers are likely to score themselves a bargain, with the Singapore-based Qantas joint venture giving itself only one week to sell tickets for its inaugural flights.
After taking delivery of its second and third Airbus 320s yesterday, the airline confirmed its first tickets would go on sale next week for three yet-to-be-disclosed destinations it plans to be servicing from mid-December.
"Ideally, we would have liked a longer selling period," Jetstar Asia's chief operating officer, Con Korfiatis, said.
But given the airline was only able to formally apply for traffic rights to various air routes after receiving its air operator's certificate on November 19, Mr Korfiatis said Jetstar Asia had no other choice.
If it had waited until February to launch, Jetstar Asia would have missed out on the busy Christmas holiday period, which he said was the perfect springboard for Jetstar to establish itself as an Asia-Pacific brand name.
After setting out plans last week to fly to Shanghai, Hong Kong, Taipei, Pattaya, Jakarta, Surabaya and Manila by late February, Mr Korfiatis said: "We're very confident that we've got very good flying for all the aircraft."
The managing director of the Centre for Asia Pacific Aviation, Peter Harbison, said it was likely Jetstar Asia would have to offer tickets at very low prices.
"You can probably anticipate they will be coming on with a big splash," he said. In comparison, Jetstar Australia sold its first tickets 10 weeks before launching in May.
Mr Korfiatis said the next vital step in Jetstar's planned three-year growth phase to a fleet of 20 aircraft would not only be to tap into the burgeoning demand for air traffic in Asia but to see further liberalisation of the Asian aviation market.
Amid recent murmurings that India could free up more of its highly regulated aviation market, the further loosening of airline rights and visa restrictions between Asian countries was one of the key topics of conversation at last week's ASEAN forum in Laos.
It is unclear whether Jetstar Asia's entry will trigger an airfare war like that its Australian cousin triggered with Virgin Blue in late February, when it dumped 100,000 $29 one-way tickets on the market.
Only two of seven destinations already nominated by Jetstar Asia - Jakarta and Hong Kong - are serviced by the other two budget airlines based in Singapore - Valuair and Tiger Airways, partly owned by Singapore Air. AirAsia operates flights into Singapore from Phuket and Bangkok.
After launching flights to Perth this week, Valuair said it would not respond by cutting fares if Jetstar entered its routes anyway.
"It would be pointless for most carriers to have a full-on price war because the carriers would run themselves into the ground," Valuair spokesman Nilesh Pritam said.
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Dow Jones
Monday December 6, 3:03 PM AEST
Singapore Jetstar Asia To Start Flying Dec 13, Eyes India
SINGAPORE (Dow Jones)--Jetstar Asia (JETSTAR.YY), Singapore's latest low-cost carrier, or LCC, is starting commercial flights on Dec. 13 and is eyeing points in China and India as it seeks to differentiate itself from its competitors, its Chief Operating Officer Con Korfiatis said Monday.
The airline, which is 49% owned by Australia's Qantas Airways Ltd. (QAN.AU), will start with a daily flight to Hong Kong Dec. 13, to be followed by similar flights to Taipei Dec. 16 and to Pattaya in Thailand Dec. 20, Korfiatis said, adding that Jetstar Asia will be the first LCC to serve these markets.
"We have said from the beginning that our success will depend on our ability to grow the market and by becoming the first LCC to serve several major population centers....as well as opening new routes, we are doing just that," Korfiatis said.
Jetstar Asia faces competition from Valuair Ltd. and 49% Singapore Airlines Ltd. (S55.SG)-owned Tiger Airways Ltd. in the domestic market, and aims to differentiate itself by flying to destinations not serviced by existing LCCs.
Apart from Taipei and Pattaya, the airline plans to be the first LCC to serve Surabaya in Indonesia, Shanghai in China and Manila in the Philippines and expects to announce details next year.
The airline is also eyeing points in India such as Chennai and Mumbai, as well as other points in China within a five-hour flying radius, Korfiatis said without providing further details.
Jetstar Asia is offering promotional one-way fares of S$48 to Hong Kong, S$88 to Taipei and S$28 to Pattaya during the first week of operations on each route.
Subsequent fares will start from S$88 to Hong Kong, S$118 to Taipei and S$59 to Pattaya.
The airline plans to keep its fares 30%-35% below those of full service airlines. Tiger Airways has said it wants to keep its average fares at 40% of full service airlines.
Unlike Tiger Airways, Jetstar Asia offers assigned seating.
Korfiatis said the airline will take bookings on its Web site - www.jetstarasia.com - from Tuesday.
Jetstar Asia currently has three Airbus A320 aircraft that seats 180 passengers each and expects to add another in January. It plans to add another four aircraft in 2005.
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Copyright © 2004Dow Jones & Company Inc. All rights reserved.
Monday December 6, 3:03 PM AEST
Singapore Jetstar Asia To Start Flying Dec 13, Eyes India
SINGAPORE (Dow Jones)--Jetstar Asia (JETSTAR.YY), Singapore's latest low-cost carrier, or LCC, is starting commercial flights on Dec. 13 and is eyeing points in China and India as it seeks to differentiate itself from its competitors, its Chief Operating Officer Con Korfiatis said Monday.
The airline, which is 49% owned by Australia's Qantas Airways Ltd. (QAN.AU), will start with a daily flight to Hong Kong Dec. 13, to be followed by similar flights to Taipei Dec. 16 and to Pattaya in Thailand Dec. 20, Korfiatis said, adding that Jetstar Asia will be the first LCC to serve these markets.
"We have said from the beginning that our success will depend on our ability to grow the market and by becoming the first LCC to serve several major population centers....as well as opening new routes, we are doing just that," Korfiatis said.
Jetstar Asia faces competition from Valuair Ltd. and 49% Singapore Airlines Ltd. (S55.SG)-owned Tiger Airways Ltd. in the domestic market, and aims to differentiate itself by flying to destinations not serviced by existing LCCs.
Apart from Taipei and Pattaya, the airline plans to be the first LCC to serve Surabaya in Indonesia, Shanghai in China and Manila in the Philippines and expects to announce details next year.
The airline is also eyeing points in India such as Chennai and Mumbai, as well as other points in China within a five-hour flying radius, Korfiatis said without providing further details.
Jetstar Asia is offering promotional one-way fares of S$48 to Hong Kong, S$88 to Taipei and S$28 to Pattaya during the first week of operations on each route.
Subsequent fares will start from S$88 to Hong Kong, S$118 to Taipei and S$59 to Pattaya.
The airline plans to keep its fares 30%-35% below those of full service airlines. Tiger Airways has said it wants to keep its average fares at 40% of full service airlines.
Unlike Tiger Airways, Jetstar Asia offers assigned seating.
Korfiatis said the airline will take bookings on its Web site - www.jetstarasia.com - from Tuesday.
Jetstar Asia currently has three Airbus A320 aircraft that seats 180 passengers each and expects to add another in January. It plans to add another four aircraft in 2005.
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Copyright © 2004Dow Jones & Company Inc. All rights reserved.
