Qantas passes baton to Jetstar
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Qantas passes baton to Jetstar
Tues "Sydney Morning Herald"
Qantas passes baton to Jetstar
By Scott Rochfort
October 18, 2005
Qantas's plans to hive off a large chunk of its international operations to its low-cost Jetstar franchise are well advanced, with the airline looking to launch Jetstar flights from Australia to South-East Asia, China and possibly Japan in the second half of next year.
The national carrier is looking to lease longer-range aircraft for the budget airline, which initially will have a mandate to fly to destinations within a 10-hour flying range of Australia. It will form a major plank of Qantas's five-year plan to slash $3 billion from its cost base.
The Qantas board is expected to sign off plans for Jetstar International in early December. Jetstar International is expected to be run separately from Jetstar, which itself will launch international flights to New Zealand on December 1.
Like the domestic Jetstar, which was launched in May last year, it is expected the new carrier will take over less profitable international routes, such as Bali, Manila, Bangkok, Fukuoka in Japan and even Honolulu.
The carrier is also expected to open up more routes into Asia from smaller capital cities, such as Adelaide and Perth. Given the new Jetstar's longer range, it is speculated it will have two classes - economy and premium economy (or business).
Aside from attacking Qantas's cost base, the new Jetstar is also aiming to stem the growing incursion of carriers such as Emirates and Singapore Airlines on air traffic into Australia. Qantas's share of the international market into Australia fell from 30.4 to 28.3 per cent in the year to June.
The Qantas board is also expected to approve what could be the airline's largest fleet order. Qantas is looking at purchasing - and leasing - up to 100 new medium- and long-range aircraft. It is speculated a sizeable chunk of the order will be destined for Jetstar. Within Qantas ranks there is talk of the new airline even having a larger fleet than the domestic Jetstar, which will have a fleet of 23 jets by May next year.
The Qantas fleet order could include so-called "hub busting" ultra-long range aircraft such as the Airbus 340-500 and Boeing 777-200ER, and medium-range planes such as the B787 and A350.
Given the aircraft could take several years to deliver, Qantas in the meantime is looking to lease aircraft for Jetstar's initial incursion into Asia. It is expected Jetstar could wait until it takes delivery of its fleet of A350s or 787s before launching flights to Europe and the US.
It is unclear what the expansion of Jetstar means for the future of Qantas's other Asia-focused budget operation, Australian Airlines.
Qantas chief executive Geoff Dixon declined to comment yesterday on Jetstar's international expansion plans or if it could result in Qantas surrendering some routes. Nor would he comment on the possible ramifications on Qantas's heavily unionised 38,000-strong workforce.
At the full-year profit results in August, Mr Dixon said: "Jetstar is going to be such an important part of Qantas … it will be just as important as the main line."
Qantas's plans to boost the profile of Jetstar internationally could meet stiff resistance from pilots. A list of so-called "reform candidates" recently won control of the Australian and International Pilots Association. Their campaign for control of the union was spearheaded by opposition to Jetstar launching international flights.
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Qantas passes baton to Jetstar
By Scott Rochfort
October 18, 2005
Qantas's plans to hive off a large chunk of its international operations to its low-cost Jetstar franchise are well advanced, with the airline looking to launch Jetstar flights from Australia to South-East Asia, China and possibly Japan in the second half of next year.
The national carrier is looking to lease longer-range aircraft for the budget airline, which initially will have a mandate to fly to destinations within a 10-hour flying range of Australia. It will form a major plank of Qantas's five-year plan to slash $3 billion from its cost base.
The Qantas board is expected to sign off plans for Jetstar International in early December. Jetstar International is expected to be run separately from Jetstar, which itself will launch international flights to New Zealand on December 1.
Like the domestic Jetstar, which was launched in May last year, it is expected the new carrier will take over less profitable international routes, such as Bali, Manila, Bangkok, Fukuoka in Japan and even Honolulu.
The carrier is also expected to open up more routes into Asia from smaller capital cities, such as Adelaide and Perth. Given the new Jetstar's longer range, it is speculated it will have two classes - economy and premium economy (or business).
Aside from attacking Qantas's cost base, the new Jetstar is also aiming to stem the growing incursion of carriers such as Emirates and Singapore Airlines on air traffic into Australia. Qantas's share of the international market into Australia fell from 30.4 to 28.3 per cent in the year to June.
The Qantas board is also expected to approve what could be the airline's largest fleet order. Qantas is looking at purchasing - and leasing - up to 100 new medium- and long-range aircraft. It is speculated a sizeable chunk of the order will be destined for Jetstar. Within Qantas ranks there is talk of the new airline even having a larger fleet than the domestic Jetstar, which will have a fleet of 23 jets by May next year.
The Qantas fleet order could include so-called "hub busting" ultra-long range aircraft such as the Airbus 340-500 and Boeing 777-200ER, and medium-range planes such as the B787 and A350.
Given the aircraft could take several years to deliver, Qantas in the meantime is looking to lease aircraft for Jetstar's initial incursion into Asia. It is expected Jetstar could wait until it takes delivery of its fleet of A350s or 787s before launching flights to Europe and the US.
It is unclear what the expansion of Jetstar means for the future of Qantas's other Asia-focused budget operation, Australian Airlines.
Qantas chief executive Geoff Dixon declined to comment yesterday on Jetstar's international expansion plans or if it could result in Qantas surrendering some routes. Nor would he comment on the possible ramifications on Qantas's heavily unionised 38,000-strong workforce.
At the full-year profit results in August, Mr Dixon said: "Jetstar is going to be such an important part of Qantas … it will be just as important as the main line."
Qantas's plans to boost the profile of Jetstar internationally could meet stiff resistance from pilots. A list of so-called "reform candidates" recently won control of the Australian and International Pilots Association. Their campaign for control of the union was spearheaded by opposition to Jetstar launching international flights.
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"Jetstar is going to be such an important part of Qantas … it will be just as important as the main line."
I would guess it has a real good chance of being the main line. Once Jetstar has done its job of chipping away at union entitlements and expanding the Qantas reach into a low cost airline while still appealing to the business and first class pax, then the Qantas name will be transferred over to swallow Jetstar and Qantas will have achieved indirectly what it couldn't achieve by a frontal assault.
I would guess it has a real good chance of being the main line. Once Jetstar has done its job of chipping away at union entitlements and expanding the Qantas reach into a low cost airline while still appealing to the business and first class pax, then the Qantas name will be transferred over to swallow Jetstar and Qantas will have achieved indirectly what it couldn't achieve by a frontal assault.
Now these WILL be interesting times !!
IMHO For anyone not in the top one-third of the QF seniority list the next few months are going to be very important.
Good luck with it all,
Cheers Oz2
IMHO For anyone not in the top one-third of the QF seniority list the next few months are going to be very important.
Good luck with it all,
Cheers Oz2
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It is unclear what the expansion of Jetstar means for the future of Qantas's other Asia-focused budget operation, Australian Airlines.
I am afraid that we are at very serious x-road for QF mainline staff, and that unless we embark on some serious, outright confrontation with Dixon we're about to be scuttled.
This cancer has eaten well into QANTAS.
Jet* has to be stopped NOW from taking ANY international flying.
End of story (or end of QANTAS, as a real airline).
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It is terribley sad that Qantas is pitting fellow employees against one another. The sadder thing is that there is little either employee group can do - given that a united approach seems well and truley out of the question and far too hard for all concerned, it would seem. I think that a change in this regard is well and truley above any employee group anyway. Management have the balance of power, in my opinion.
There would have to be a point at which this approach will backfire on Qantas (management that is)... Anyone hazard a guess at what point that will be? This is certainly and odd way to run a company.
There would have to be a point at which this approach will backfire on Qantas (management that is)... Anyone hazard a guess at what point that will be? This is certainly and odd way to run a company.
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Dixon and Co. must be drooling with eager anticipation.
He has now managed to avoid an employee vs company battle by setting up employee against employee.
If you allow it to happen, there can be only one lot of losers - the employees.
Jet Star pilots - imo - need to restrain themselves from being seduced by "newer, bigger, faster, further" toys and undercutting the incumbent QF pilots routes and conditions.
Your future actions are set to lay the basis for the next 20 years of airline pilots' conditions, and IMMEDIATELY affect those of the current Qantas pilots.
Resist it with all your might -for your own future, and that of many thousands more.
Please.
He has now managed to avoid an employee vs company battle by setting up employee against employee.
If you allow it to happen, there can be only one lot of losers - the employees.
Jet Star pilots - imo - need to restrain themselves from being seduced by "newer, bigger, faster, further" toys and undercutting the incumbent QF pilots routes and conditions.
Your future actions are set to lay the basis for the next 20 years of airline pilots' conditions, and IMMEDIATELY affect those of the current Qantas pilots.
Resist it with all your might -for your own future, and that of many thousands more.
Please.
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Qantas's plans to boost the profile of Jetstar internationally could meet stiff resistance from pilots. A list of so-called "reform candidates" recently won control of the Australian and International Pilots Association. Their campaign for control of the union was spearheaded by opposition to Jetstar launching international flights.
................I would like to see that..................
The Lame's have been sold out by their own for too long now, its time to stand up to these B#@!%&^D.
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Talking to Jet* pilots they appear to be very proud that they will be taking work off QF and taking it by undercutting by what ever amount is required.
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I'm afraid it's "game over," chaps. This rot began when the QF pilots left the AFAP and accelerated with the effective demise of the AFAP in the "late eighties." GD has won a lay down misere with the assistance of the trump jokers in J*.
Talking to Jet* pilots they appear to be very proud that they will be taking work off QF and taking it by undercutting by what ever amount is required.
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I'm afraid it's "game over," chaps. This rot began when the QF pilots left the AFAP and accelerated with the effective demise of the AFAP in the "late eighties." GD has won a lay down misere with the assistance of the trump jokers in J*.
Last edited by Casper; 18th Oct 2005 at 02:33.
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i wonder what the dynamics of jet* int will be ----
let see
1. cabin crew recruited from some south east asian ****hole like bangladesh paid approx $1.50 per hour and based in thailand
2. fuel supplied from chepa petrol on the princes hwy and mixed with 80% ethanol
3. total engineering support from the gungzu aircraft maintenance company in china
4. catering suppied from the salvation army soup kitchen at kings cross
5.call center and admin ops based in the black hole of calcutter in india
6.ground support by aero scare--sorry i mean- care-
that should achive the dream low cost airline
let see
1. cabin crew recruited from some south east asian ****hole like bangladesh paid approx $1.50 per hour and based in thailand
2. fuel supplied from chepa petrol on the princes hwy and mixed with 80% ethanol
3. total engineering support from the gungzu aircraft maintenance company in china
4. catering suppied from the salvation army soup kitchen at kings cross
5.call center and admin ops based in the black hole of calcutter in india
6.ground support by aero scare--sorry i mean- care-
that should achive the dream low cost airline
Last edited by soldier of fortune; 18th Oct 2005 at 05:24.
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Blame, blame, blame, why is it all you guys ever do is blame someone else? QF, Jet*, AA, Virgin, GD, AIPA, AFAP, heroes, white hats and many others are blamed here in these forums...
It's never your fault is it?
Take a long hard look, the only person responsible for the position of each individual, is the individual themself!! It is individual choices, not collective ones that have made this industry what it is! (ie: greed and short sightedness)
It is also your choice to make a difference on an individual level, sadly not many choose to accept that challenge, it is far simpler to go with the flow and BLAME someone else.
PS: One last thing how many individuals (not on behalf of various pilot bodies or interest groups) have contacted or gone to see GD to outline your concerns?
As I suspected...............
It's never your fault is it?
Take a long hard look, the only person responsible for the position of each individual, is the individual themself!! It is individual choices, not collective ones that have made this industry what it is! (ie: greed and short sightedness)
It is also your choice to make a difference on an individual level, sadly not many choose to accept that challenge, it is far simpler to go with the flow and BLAME someone else.
PS: One last thing how many individuals (not on behalf of various pilot bodies or interest groups) have contacted or gone to see GD to outline your concerns?
As I suspected...............
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there is plenty of f/os and captains already type rated on these machines who would come home in a jiffy , looks like payback time from the dispute.
Some have spoken to dixon personally look out............
Some have spoken to dixon personally look out............
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Pilots from both sides of the (1989) fence understand how destructive it is for their future, to become involved in discussions with managements that are out with the sole intention of degrading conditions of the pilot group.
It is now time for QANTAS and Jet* pilots to step up to the plate and prove that you have indeed learnt lessons from 1989 - or else be prepared to be shat upon again.
It is now time for QANTAS and Jet* pilots to step up to the plate and prove that you have indeed learnt lessons from 1989 - or else be prepared to be shat upon again.
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yeh -looks like management are going to dish up the **** sandwich again-- no doubt joke*pilots will take the biggest bite and leave a bad taste in every one's mouth.
i can just imagine the back room deals to crew these new aircraft.
"oh hi - will fly these aircraft for anything you want us to"
i can just imagine the back room deals to crew these new aircraft.
"oh hi - will fly these aircraft for anything you want us to"
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It'll be interesting to see how or if this affects the EBA vote. I'm just still shaking my head in disbelief that there are guys out there in the mainline group (although I believe and hope a minority) who are quite happy to roll over onto their tummies and offer the CEO unfettered access to their nether regions with nary a faint, high-pitched whimper.
I don't advocate being stupid or rash about what's happening, but the pilot group could do with some balls.
I don't advocate being stupid or rash about what's happening, but the pilot group could do with some balls.
Whilst there is a lot of speculation going on here, I can't for the life of me understand why the Jetstar pilots aren't willing to say "Excuse me Dixon, Borghetti, Joyce, but Qantas mainline pilots are paid $X00,000 to fly an A330, why can't we get the same amount if the aircraft is in Jetstar colours?"
Can any Jetstar pilot answer that question? Why on earth would you be willing to sell yourself short for essentially the same job?
When will they realise that low cost does not have to mean low salaries?
TL
Can any Jetstar pilot answer that question? Why on earth would you be willing to sell yourself short for essentially the same job?
When will they realise that low cost does not have to mean low salaries?
TL
J* have the inside running on this one and the pilots are not over a barrel this time, as they were when J* was created. They have the power in this process and should be able to demand greater remuneration. QF does not have a ready supply of trained pilots up its sleave to threaten J* with. QF mainline are still short of pilots and are recruiting heavily still and will do for the forseable future. J* are absorbing new aircraft all the time with the need for more crews. It just remains to be seen if they use their bargaining power wisely.