Jetstar to Europe & USA
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Jetstar to Europe & USA
Wed "Sydney Morning Herald"
Qantas expands cut-price strategy
By Scott Rochfort
August 24, 2005
Qantas has embarked on a long-term plan to split the national carrier in two in an attempt to slash costs, and has announced plans to add a fifth fuel surcharge in 16 months to counter rising oil costs.
By next year Qantas's low-cost offshoot, Jetstar, plans to fly to Asia, and possibly Europe and North America.
The move comes just days after Qantas said Jetstar would some day be "just as important as the main line" airline.
It is thought Jetstar will fly to areas deemed barely profitable by Qantas and which are dominated by economy-class passengers, such as Bali, Honolulu and even Rome, a route Qantas abandoned in 2003. Qantas will stick to the main routes frequented by business-class passengers, such as Sydney to London.
Jetstar's ascendancy is seen as a key plank in Qantas's plans to cut $3 billion in costs by 2008. Jetstar's international expansion could replicate Qantas's moves domestically, where Jetstar has replaced Qantas's services to leisure destinations such as the Gold Coast and Hamilton Island.
Qantas's chief financial officer, Peter Gregg, said Jetstar was likely to fly to the smaller destinations in countries Qantas already served. He declined to say which long-haul aircraft Jetstar would use but said it could take 12 months to get regulatory approval. He did not rule out using Qantas's fleet of four A330-200s.
Qantas had to ditch its plans to fly the A330-200s into Asia two years ago. This was because the floor on the jets was too thin to install business-class SkyBeds.
Mr Gregg denied talk in aviation circles that Qantas had made a huge error in ordering the aircraft. He said Qantas had planned to use them without SkyBeds domestically, but had changed its mind after Ansett collapsed in September 2001.
He added: "There's no problem putting the SkyBed on." However, this would cost $20 million in strengthening the floors and "writing off" the interiors.
There is speculation Qantas has been keen to offload the aircraft on to its low-cost operations, given the huge cost of upgrading them.
Qantas "reluctantly" announced its fifth fuel surcharge since May last year. It also warned that further job cuts would be needed to counter the rising cost of oil, now about $US65 a barrel. It said that from September 2 domestic one-way fuel surcharges would rise from $20 to $26, the international surcharge from $60 to $75 and the trans-Tasman surcharge from $40 to $46.
Despite the airline having 90 per cent of its fuel bill hedged around $US49 a barrel until December 31, it warned its oil costs would rise by $1.25 billion this financial year. The airline has left Jetstar's one-way charge at $19, prompting speculation that its low-cost rival Virgin Blue may hold off raising its $19 levy.
Air New Zealand also announced a new fuel surcharge yesterday, including a 4.5 per cent boost to domestic fares. The surcharge means the cost of flights to and from Australia will rise by $9.15.
Qantas is expected to waste no time slashing the further $1.5 billion in costs it announced last Thursday, on top of its current $1.5 billion three-year cost-cutting program.
After announcing plans on Monday to replace 96 customer service jobs with e-ticket machines, Qantas's chief executive, Geoff Dixon, said: "As far as we're concerned we're going to keep on making changes."
He denied Qantas would wait for the Government to conclude its review of airline policy. The review could result in the lifting of the 49 per cent foreign ownership restriction on the airline.
==========================================
Qantas expands cut-price strategy
By Scott Rochfort
August 24, 2005
Qantas has embarked on a long-term plan to split the national carrier in two in an attempt to slash costs, and has announced plans to add a fifth fuel surcharge in 16 months to counter rising oil costs.
By next year Qantas's low-cost offshoot, Jetstar, plans to fly to Asia, and possibly Europe and North America.
The move comes just days after Qantas said Jetstar would some day be "just as important as the main line" airline.
It is thought Jetstar will fly to areas deemed barely profitable by Qantas and which are dominated by economy-class passengers, such as Bali, Honolulu and even Rome, a route Qantas abandoned in 2003. Qantas will stick to the main routes frequented by business-class passengers, such as Sydney to London.
Jetstar's ascendancy is seen as a key plank in Qantas's plans to cut $3 billion in costs by 2008. Jetstar's international expansion could replicate Qantas's moves domestically, where Jetstar has replaced Qantas's services to leisure destinations such as the Gold Coast and Hamilton Island.
Qantas's chief financial officer, Peter Gregg, said Jetstar was likely to fly to the smaller destinations in countries Qantas already served. He declined to say which long-haul aircraft Jetstar would use but said it could take 12 months to get regulatory approval. He did not rule out using Qantas's fleet of four A330-200s.
Qantas had to ditch its plans to fly the A330-200s into Asia two years ago. This was because the floor on the jets was too thin to install business-class SkyBeds.
Mr Gregg denied talk in aviation circles that Qantas had made a huge error in ordering the aircraft. He said Qantas had planned to use them without SkyBeds domestically, but had changed its mind after Ansett collapsed in September 2001.
He added: "There's no problem putting the SkyBed on." However, this would cost $20 million in strengthening the floors and "writing off" the interiors.
There is speculation Qantas has been keen to offload the aircraft on to its low-cost operations, given the huge cost of upgrading them.
Qantas "reluctantly" announced its fifth fuel surcharge since May last year. It also warned that further job cuts would be needed to counter the rising cost of oil, now about $US65 a barrel. It said that from September 2 domestic one-way fuel surcharges would rise from $20 to $26, the international surcharge from $60 to $75 and the trans-Tasman surcharge from $40 to $46.
Despite the airline having 90 per cent of its fuel bill hedged around $US49 a barrel until December 31, it warned its oil costs would rise by $1.25 billion this financial year. The airline has left Jetstar's one-way charge at $19, prompting speculation that its low-cost rival Virgin Blue may hold off raising its $19 levy.
Air New Zealand also announced a new fuel surcharge yesterday, including a 4.5 per cent boost to domestic fares. The surcharge means the cost of flights to and from Australia will rise by $9.15.
Qantas is expected to waste no time slashing the further $1.5 billion in costs it announced last Thursday, on top of its current $1.5 billion three-year cost-cutting program.
After announcing plans on Monday to replace 96 customer service jobs with e-ticket machines, Qantas's chief executive, Geoff Dixon, said: "As far as we're concerned we're going to keep on making changes."
He denied Qantas would wait for the Government to conclude its review of airline policy. The review could result in the lifting of the 49 per cent foreign ownership restriction on the airline.
==========================================
What a disgusting idea! Provide a low class crappy service to as many places as possible using Jetstar. Why am I not surprised?
I wonder when the customer service number becomes a premium pay by the minute 1-900 line?
I guess the introduction of automatic check in kiosks means that anyone who needs to speak to a real human at check in will have to wait literaly hours.
And of course thanks to Qantas's monopoly of excess capacity into and out of Australia, the average Australian punter will have no choice but to fly Jetstar as every aircraft that is NOT Qantas is already full.
Great way to make money though, lower the cost and quality of the service.
QF repels me. Open the skies and get rid of this farce of an airline.
I wonder when the customer service number becomes a premium pay by the minute 1-900 line?
I guess the introduction of automatic check in kiosks means that anyone who needs to speak to a real human at check in will have to wait literaly hours.
And of course thanks to Qantas's monopoly of excess capacity into and out of Australia, the average Australian punter will have no choice but to fly Jetstar as every aircraft that is NOT Qantas is already full.
Great way to make money though, lower the cost and quality of the service.
QF repels me. Open the skies and get rid of this farce of an airline.
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It was clear years ago that AIPA is irrelevant in QF's agenda but the sleeping majority are starting to wake up now its getting serious.
To announce such a contentious issue before the EBA is voted on indicates QF don't care which way it goes. The company wins either way.
EBA in = Mainline cheap enough to continue in the game for whatever flying the company decides to give them. (maybe).
Company works on putting the screws in even more for EBA 8.
Why not, the pilots are pussies if they accept this crap.
EBA out= Further marginalise Mainline by farming out more flying to our good cheap buddies in Jetstar. Get Oldmeadow to concentrate on a strategy to nuke the recalcitrant drivers (everyone) who had the temerity not to accept what was on offer. Make new recruits pay for endorsement, accept Z scale, cheap foreign basings, etc and etc and eat em up from below.
If you are in mainline it would pay to be a senior 400 skipper with a few years to go. Everyone else looks like having a turn in the barrel.
And don't blame the Jetstar blokes for any of this. AIPA told them to take a hike when it counted and this is the result.
To announce such a contentious issue before the EBA is voted on indicates QF don't care which way it goes. The company wins either way.
EBA in = Mainline cheap enough to continue in the game for whatever flying the company decides to give them. (maybe).
Company works on putting the screws in even more for EBA 8.
Why not, the pilots are pussies if they accept this crap.
EBA out= Further marginalise Mainline by farming out more flying to our good cheap buddies in Jetstar. Get Oldmeadow to concentrate on a strategy to nuke the recalcitrant drivers (everyone) who had the temerity not to accept what was on offer. Make new recruits pay for endorsement, accept Z scale, cheap foreign basings, etc and etc and eat em up from below.
If you are in mainline it would pay to be a senior 400 skipper with a few years to go. Everyone else looks like having a turn in the barrel.
And don't blame the Jetstar blokes for any of this. AIPA told them to take a hike when it counted and this is the result.
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AIPA also told Jetconnect to take a hike!! Bonvol is spot on, if AIPA had of collectively banded all together, not saying it would be different now, but a united front is better than the situation we have now!
Sunfish, whats the difference between being stuck in a J* tube full of bogans and a Virgin 737 full of bogans?
Don't scratch your bum Sunfish, you may get a brain heamorage!
Sunfish, whats the difference between being stuck in a J* tube full of bogans and a Virgin 737 full of bogans?
Don't scratch your bum Sunfish, you may get a brain heamorage!
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I have a small concern regarding the policy that Qantas has in regard to replacing check-in staff with self serv kiosks (and perhaps anyone who makes their living operating an RPT aircraft will too)
My concern with the self serv kiosk is along these lines. Anybody can purchase a domestic E-ticket to travel within Australia under an assumed name on-line. A transaction at an airport with a self-check kiosk does not require production of valid identification to obtain a bording pass, just a booking number (as opposed to having to interact with a human being in order to obtain a boarding pass).
My worry is that this new system, whilst probably very popular with the honest traveller (and no doubt the bean counters), it lays itself wide open to abuse from those with more sinister intentions. I don't think that we should rely soley on a locked cockpit door as the main line of defense here (and I don't believe that there are sky-marshalls on every flight in Australia).
Perhaps the hatchet men at Qantas should have another think before making the job of hijackers any easier that it already is?
But then, god help anyone who stands in the way of next years executive bonus or shareholder dividend.
My concern with the self serv kiosk is along these lines. Anybody can purchase a domestic E-ticket to travel within Australia under an assumed name on-line. A transaction at an airport with a self-check kiosk does not require production of valid identification to obtain a bording pass, just a booking number (as opposed to having to interact with a human being in order to obtain a boarding pass).
My worry is that this new system, whilst probably very popular with the honest traveller (and no doubt the bean counters), it lays itself wide open to abuse from those with more sinister intentions. I don't think that we should rely soley on a locked cockpit door as the main line of defense here (and I don't believe that there are sky-marshalls on every flight in Australia).
Perhaps the hatchet men at Qantas should have another think before making the job of hijackers any easier that it already is?
But then, god help anyone who stands in the way of next years executive bonus or shareholder dividend.
bonvol & Pete
I've asked this question before and got no response.
Who from AIPA (& when) told the Jetstar (Impulse) guys to take a hike?
I know that CM addressed the IPG at their first meeting after QF's acquisition of Impulse and offered them membership of AIPA as soon as the AIPA rules were amended to permit it. AIPA also gave advice on how to set up the IPG as well as industrial relations support (from AS). I personally would like to know who changed the direction that AIPA had been taking or is this "take a hike" issue just a furphy.
I've asked this question before and got no response.
Who from AIPA (& when) told the Jetstar (Impulse) guys to take a hike?
I know that CM addressed the IPG at their first meeting after QF's acquisition of Impulse and offered them membership of AIPA as soon as the AIPA rules were amended to permit it. AIPA also gave advice on how to set up the IPG as well as industrial relations support (from AS). I personally would like to know who changed the direction that AIPA had been taking or is this "take a hike" issue just a furphy.
Chockchucker,
If its of any interest to you, in Europe the check-in kiosks require a valid credit card before you can check in electronically. Thats one way of checking the ID of the traveller. The kiosk will then bring up the tickets booked to that card.
If its of any interest to you, in Europe the check-in kiosks require a valid credit card before you can check in electronically. Thats one way of checking the ID of the traveller. The kiosk will then bring up the tickets booked to that card.
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Going Boeing...correct me if I'm wrong, re J*, was it not a mutual thing anyway? AIPA set the bar too high and JPC knew that if they distanced themselves from AIPA, then they would have a better chance at getting the flying they wanted whilst keeping mainline looking that much more expensive?
bonvol,
I understand where you're coming from, but at the same time I ask myself "When the hell are these guys going to grow a f*cking spine?"
Have a look at the Jetstar EBA thread and see what sort of conditions they are prostituting themselves for.
Jetstar, all day everyday, without lube!
TL
And don't blame the Jetstar blokes for any of this
Have a look at the Jetstar EBA thread and see what sort of conditions they are prostituting themselves for.
Jetstar, all day everyday, without lube!
TL
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Here's a good idea Geoff,
Join the rest of the world and buy 777's (or correct the massive blunder with the A332's), operate them to Rome, Honolulu, etc, replacing the 4 burner classic which needs a stopover to Rome, therefore saving fuel and crewing costs with direct and more efficient flights. Better still, current QF staff will benefit from this too raising the low staff morale.
Or you could make a workforce that are disengaged, become completely disillusioned. Jetstar is cheapening the brand that was Qantas. Maybe QF could rebrand itslef with Prince's symbol, The Airline formerly known as.......
But as long as the shareholders are happy, bugger the staff and customers.
Join the rest of the world and buy 777's (or correct the massive blunder with the A332's), operate them to Rome, Honolulu, etc, replacing the 4 burner classic which needs a stopover to Rome, therefore saving fuel and crewing costs with direct and more efficient flights. Better still, current QF staff will benefit from this too raising the low staff morale.
Or you could make a workforce that are disengaged, become completely disillusioned. Jetstar is cheapening the brand that was Qantas. Maybe QF could rebrand itslef with Prince's symbol, The Airline formerly known as.......
But as long as the shareholders are happy, bugger the staff and customers.
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Skypatrol
Well said. Funny, you seem to echo the thoughts of staff also. But then, we're not smart enough to make those kind of decisions, are we...?
Re: Jetstar to Europe, etc...one question remains:
Why wasn't Australian ever mentioned by Peter Gregg or the report??
Or do my suspicions answer this very question?
Well said. Funny, you seem to echo the thoughts of staff also. But then, we're not smart enough to make those kind of decisions, are we...?
Re: Jetstar to Europe, etc...one question remains:
Why wasn't Australian ever mentioned by Peter Gregg or the report??
Or do my suspicions answer this very question?
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Going Boeing,
This from a 2003 post
'LPG & AIPA
JetsBest
HISTORY:
When QF acquired Impulse I with another TC from the Pulse had a meeting with CM in his apartment next to South Bank.
We asked him if we could join AIPA.
He said "not possible at this stage"
We went to meet the AIPA pres to work with QF, not against them.
We also had a few discussions with the AFAP but to align with them was to give us no say within the QF group.
So the IPG was formed."
The point is AIPA was asleep at the wheel when an LCC was mooted. Not possible = take a hike in my book and was interpreted that way by the friends I have in Jetstar.
Remember the Botany meeting? Talk of a line in the sand and all that to secure the flying for mainline. What happened, nothing ..as usual.
There is also a post by Keg somewhere in here when he asked the Pres about the prudence of keeping the Jetstar blokes at arms length. I can't remember the exact question or reply but it was in the negative to proceed down the path of including Jetstar pilots in AIPA. No doubt someone will correct me if I'm wrong.
For Transition Layer. I dont think the Jetstar blokes can grow a backbone. They know to resist the company push is to invite oblivion. I think they figure they may not earn megadollars but at least they have a job. Not that I necessarily agree with this thinking .
This from a 2003 post
'LPG & AIPA
JetsBest
HISTORY:
When QF acquired Impulse I with another TC from the Pulse had a meeting with CM in his apartment next to South Bank.
We asked him if we could join AIPA.
He said "not possible at this stage"
We went to meet the AIPA pres to work with QF, not against them.
We also had a few discussions with the AFAP but to align with them was to give us no say within the QF group.
So the IPG was formed."
The point is AIPA was asleep at the wheel when an LCC was mooted. Not possible = take a hike in my book and was interpreted that way by the friends I have in Jetstar.
Remember the Botany meeting? Talk of a line in the sand and all that to secure the flying for mainline. What happened, nothing ..as usual.
There is also a post by Keg somewhere in here when he asked the Pres about the prudence of keeping the Jetstar blokes at arms length. I can't remember the exact question or reply but it was in the negative to proceed down the path of including Jetstar pilots in AIPA. No doubt someone will correct me if I'm wrong.
For Transition Layer. I dont think the Jetstar blokes can grow a backbone. They know to resist the company push is to invite oblivion. I think they figure they may not earn megadollars but at least they have a job. Not that I necessarily agree with this thinking .
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chronic snoozer,
a valid credit card is also one of the methods used here to obtain a boarding pass from a self check-in machine. However, if you have the booking reference a card isn't needed. Then again, what stops somebody from using a dodgy or just stolen credit card?(you can book an e-ticket flight half an hour prior to depature) There still isn't any mechanism to put a name to the face of the person requesting a boarding pass.
You just can't replace human beings with technology sometimes.
a valid credit card is also one of the methods used here to obtain a boarding pass from a self check-in machine. However, if you have the booking reference a card isn't needed. Then again, what stops somebody from using a dodgy or just stolen credit card?(you can book an e-ticket flight half an hour prior to depature) There still isn't any mechanism to put a name to the face of the person requesting a boarding pass.
You just can't replace human beings with technology sometimes.
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I have asked this question MANY times before - and will ask it again...........
" What is AIPA and the mainline crews doing about stopping the erosion of their pay and conditions?"
" What is AIPA and the mainline crews doing about stopping the erosion of their pay and conditions?"