JQ Baby crying with tears
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JQ Baby crying with tears
Qantas admits it still faces an uphill battle to turn a profit from its 49 per cent investment in Jetstar Asia, despite the carrier in Singapore having managed to lease out four of its unused Airbus 320s.
Amid growing speculation that Qantas and its fellow shareholders could soon ditch the loss-making airline, Qantas chief financial officer Peter Gregg said: "Its performance has improved but it's not what we hope it to be."
Blaming the carrier's inability to gain access to crucial markets such as Indonesia and China, Mr Gregg said Jetstar Asia's problems stemmed from the carrier "only [having] been given certificates to land between three and four aircraft".
The airline was to have eight aircraft in its fleet by November but, thanks to traffic restrictions, it has been forced to lease four of the Airbus A320s to the Turkish carrier AtlasJet.
It is only eight months since Qantas chief executive Geoff Dixon said the airline was "going to be a very, very substantial airline". At the time, Mr Dixon said: "I can assure you that Jetstar Asia, indeed Jetstar Australia, its sister airline, will be around in three or four years' time."
Advertisement Lately, however, Qantas has failed to provide any clear assurances on how long it will continue to back its struggling Singapore offshoot.
"We always reassess every investment along the way. Our view on life is that we have strategically set out to create with relevant shareholders a Singapore-based aviation company to try and participate in that market," Mr Gregg told the Herald. "Now if we're unable to that … then yeah, we'll look at everything,"
He declined to say how much time Qantas would give Jetstar Asia.
"We are strategic players, we are not venture capitalists; we are people to go for the long run and we look at it for the returns we are trying to achieve for our whole business," he said.
The airline's other investors include the Singapore Government's investment company Temasek Holdings, which is Singapore Airlines' major shareholder.
Mr Gregg also highlighted Jetstar Asia's woes as evidence of a lack of balance in Singapore Airlines' argument for wanting to gain access to the lucrative Sydney to Los Angeles route.
"We've done absolutely everything by the book up there. Yet the countries Singapore has negotiated rights with have denied rights to a legitimate Singaporean-based carrier and there appears to be nothing they are prepared to do about it. Which is mightily amazing for a country demanding access on a route that they don't have a right to."
After talks with the Indonesian Government two weeks ago, Singapore Transport Minister Yeo Cheow Tong said it would be another six months before the governments would review "the issue of low-cost carriers flying to Indonesia".
Amid growing speculation that Qantas and its fellow shareholders could soon ditch the loss-making airline, Qantas chief financial officer Peter Gregg said: "Its performance has improved but it's not what we hope it to be."
Blaming the carrier's inability to gain access to crucial markets such as Indonesia and China, Mr Gregg said Jetstar Asia's problems stemmed from the carrier "only [having] been given certificates to land between three and four aircraft".
The airline was to have eight aircraft in its fleet by November but, thanks to traffic restrictions, it has been forced to lease four of the Airbus A320s to the Turkish carrier AtlasJet.
It is only eight months since Qantas chief executive Geoff Dixon said the airline was "going to be a very, very substantial airline". At the time, Mr Dixon said: "I can assure you that Jetstar Asia, indeed Jetstar Australia, its sister airline, will be around in three or four years' time."
Advertisement Lately, however, Qantas has failed to provide any clear assurances on how long it will continue to back its struggling Singapore offshoot.
"We always reassess every investment along the way. Our view on life is that we have strategically set out to create with relevant shareholders a Singapore-based aviation company to try and participate in that market," Mr Gregg told the Herald. "Now if we're unable to that … then yeah, we'll look at everything,"
He declined to say how much time Qantas would give Jetstar Asia.
"We are strategic players, we are not venture capitalists; we are people to go for the long run and we look at it for the returns we are trying to achieve for our whole business," he said.
The airline's other investors include the Singapore Government's investment company Temasek Holdings, which is Singapore Airlines' major shareholder.
Mr Gregg also highlighted Jetstar Asia's woes as evidence of a lack of balance in Singapore Airlines' argument for wanting to gain access to the lucrative Sydney to Los Angeles route.
"We've done absolutely everything by the book up there. Yet the countries Singapore has negotiated rights with have denied rights to a legitimate Singaporean-based carrier and there appears to be nothing they are prepared to do about it. Which is mightily amazing for a country demanding access on a route that they don't have a right to."
After talks with the Indonesian Government two weeks ago, Singapore Transport Minister Yeo Cheow Tong said it would be another six months before the governments would review "the issue of low-cost carriers flying to Indonesia".
Moderate, Modest & Mild.
You still don't get it, do you Geoff.
Whilst the "rules" you think they play by in Asia, might superficially seem similar to those in Western countries, the truth is YOU will not be ALLOWED to win, playing in their home territory.
Cut and run now, before you do your rse some more!
Whilst the "rules" you think they play by in Asia, might superficially seem similar to those in Western countries, the truth is YOU will not be ALLOWED to win, playing in their home territory.
Cut and run now, before you do your rse some more!
Told yer so. When people start talking management speak about why they are going to succeed, they normally don't.
Biggest loss is that it is a waste of the QF Board and Management's valuable time.
Biggest loss is that it is a waste of the QF Board and Management's valuable time.
Considering QF only owns half of it, the other half owned by Singaporeans including the Singapore Airline parent company, I thought it would have done much better by now!
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What is the saying about bad workmen always blaming their tools?
Here was a prima facie case of GD having to turn a profit in a new venture where he didn't have jobs to slash, and he's shown he's not up to it.
Captain Fathom, Singapore will have reaped sheaths of gold from QF, from this venture.
Read some of the other comments preceding - had Jetstar Asia been a success, how would that have made the other Singapore ventures that were struggling, look?
Loss of face is a big factor - and they just ain't gonna let it happen, if they can prevent it.
That is what the QANTAS aspirants failed to comprehend, or hadn't understood because of a lack of research beforehand.
Here was a prima facie case of GD having to turn a profit in a new venture where he didn't have jobs to slash, and he's shown he's not up to it.
Captain Fathom, Singapore will have reaped sheaths of gold from QF, from this venture.
Read some of the other comments preceding - had Jetstar Asia been a success, how would that have made the other Singapore ventures that were struggling, look?
Loss of face is a big factor - and they just ain't gonna let it happen, if they can prevent it.
That is what the QANTAS aspirants failed to comprehend, or hadn't understood because of a lack of research beforehand.
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There aint no workforce to cut, no jobs to outsource. Gunna be interesting, still want to see the cashflow!!
Mind you the QF news mentioned the "refurbishment" of the first A330. It wasn't lost on us that this was a new aircraft they were referring to and I am sure the budget didn't envisage a refit a year into its operational life. Then again you can fool most of the people most of the time...
Mind you the QF news mentioned the "refurbishment" of the first A330. It wasn't lost on us that this was a new aircraft they were referring to and I am sure the budget didn't envisage a refit a year into its operational life. Then again you can fool most of the people most of the time...
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It is interesting to note that the two other low cost each have only 4 palnes as well. How is their route development working out?
Does the Sing Gov have a slice of all three? Wouldn't it be funny
if they picked up the pieces as they fell over. And then there was only ONE.
Does the Sing Gov have a slice of all three? Wouldn't it be funny
if they picked up the pieces as they fell over. And then there was only ONE.
What about Jet* NZ then??
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Jet*NZ - interesting one that. Surely QF has eroded the brand sufficiently already with Jet* OZ and AO.
Also the NZ-QF code sharing is looking firmer, so is jet* needed on the Tasman, as there could be a reduction in flights in their own [qf] brand in any case.
As you say 1279, how many people can survive on Tasman. It seems clear that the original Pacific Blue-print needed urgent reworking...
Also the NZ-QF code sharing is looking firmer, so is jet* needed on the Tasman, as there could be a reduction in flights in their own [qf] brand in any case.
As you say 1279, how many people can survive on Tasman. It seems clear that the original Pacific Blue-print needed urgent reworking...
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At the end of the day, there are only so many people in asia who can afford flights and so on to places, its not like there is a endless pit of money to splash around on trips away plus hotel costs, once a average joe has visited a location, they usually go somewhere else next time.
And you know, there is still a lot of shaking out of these budget airlines to come, only the fit will make it thru, the ones with very deep pockets.
And you know, there is still a lot of shaking out of these budget airlines to come, only the fit will make it thru, the ones with very deep pockets.
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With the Loss that J* Asia is making and the refurbishment of the A330 both decisions costing Qantas big time….. Will GD hand back his bonus????
My guess is NO just more BS from the Spin Man….
My guess is NO just more BS from the Spin Man….
