What does this mean for Australian and Jet*'s OZ and Asia
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What does this mean for Australian and Jet*'s OZ and Asia
The following is from todays Sydney Morning Herald. What does it all mean when reading between the lines? What is NOT being said by GD?
"New Jetstar division to be given its wings
By Scott Rochfort
December 5, 2005
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THE Qantas board is expected to approve the launch of Jetstar International on Wednesday and allow a $20 billion order for up to 100 long-haul aircraft.
By the end of next year Jetstar International is expected to start flying to destinations within 10 hours of Australia, which could include cities such as Seoul, Taipei, Ho Chi Minh City and several leisure spots in South-East Asia. Europe and the US could come later.
The new airline will form a major plank in Qantas's five-year plan to slash $3 billion from its cost base by mid-2007.
It is understood Qantas wants to run the offshoot with a cost base 40 per cent lower than its mainline operations. It will operate from all mainland state capitals.
It has been speculated that Qantas could repaint its four A330-200s for the launch of the airline and lease additional jets.
But Qantas's fleet order this week could provide a bigger clue as to Jetstar International's medium-term outlook and size.
In an interview on the ABC's Inside Business program, Qantas chief executive Geoff Dixon played down the notion of Jetstar International ever rivalling the Qantas mainline in size.
He said it would probably represent no more than 20 per cent of Qantas's international operations.
Qantas is deliberating whether to buy 300-seat Boeing 787s or Airbus 350s for the low-cost offshoot. It is expected the other tranche of the order - ultra long-range Boeing 777-200LRs or Airbus A340-500s - will go to Qantas's mainline operations.
Fuel prices could also be discussed at the board meeting.
While the price of jet fuel has fallen in recent weeks, Qantas is expected to face higher costs after January 1 because fuel hedging contracts are expiring. Qantas has hinted it could raise its fuel surcharge next year.
Another issue for discussion could be the fate of what has been dubbed Qantas's problem-child, Singapore-based Jetstar Asia.
Qantas has already sunk more than $50 million into the venture and its patience is said to be running out.
The 44.5 per cent Qantas-owned airline last week appointed its third chief executive, Neil Thompson, since it started flying nearly a year ago.
The airline has struggled to gain traffic rights into key routes into China and Indonesia.
It has also struggled to fully utilise its fleet of Airbus 320s, some of which it has had to sublease to a Turkish airline. High fuel prices have compounded its woes.
Amid criticism that Qantas's gung-ho approach in Asia has put some in the region offside, Mr Thompson's appointment is seen as positive. Fluent in mandarin, Mr Thompson could help Jetstar Asia to finally crack the Chinese market.
The signing of an air services pact between Singapore and China last week could also help.
This allows "airlines of both countries to operate passenger and all-cargo services between China and Singapore with no restrictions on capacity, routing or aircraft type", a Singapore Government statement said."
"New Jetstar division to be given its wings
By Scott Rochfort
December 5, 2005
AdvertisementAdvertisement
THE Qantas board is expected to approve the launch of Jetstar International on Wednesday and allow a $20 billion order for up to 100 long-haul aircraft.
By the end of next year Jetstar International is expected to start flying to destinations within 10 hours of Australia, which could include cities such as Seoul, Taipei, Ho Chi Minh City and several leisure spots in South-East Asia. Europe and the US could come later.
The new airline will form a major plank in Qantas's five-year plan to slash $3 billion from its cost base by mid-2007.
It is understood Qantas wants to run the offshoot with a cost base 40 per cent lower than its mainline operations. It will operate from all mainland state capitals.
It has been speculated that Qantas could repaint its four A330-200s for the launch of the airline and lease additional jets.
But Qantas's fleet order this week could provide a bigger clue as to Jetstar International's medium-term outlook and size.
In an interview on the ABC's Inside Business program, Qantas chief executive Geoff Dixon played down the notion of Jetstar International ever rivalling the Qantas mainline in size.
He said it would probably represent no more than 20 per cent of Qantas's international operations.
Qantas is deliberating whether to buy 300-seat Boeing 787s or Airbus 350s for the low-cost offshoot. It is expected the other tranche of the order - ultra long-range Boeing 777-200LRs or Airbus A340-500s - will go to Qantas's mainline operations.
Fuel prices could also be discussed at the board meeting.
While the price of jet fuel has fallen in recent weeks, Qantas is expected to face higher costs after January 1 because fuel hedging contracts are expiring. Qantas has hinted it could raise its fuel surcharge next year.
Another issue for discussion could be the fate of what has been dubbed Qantas's problem-child, Singapore-based Jetstar Asia.
Qantas has already sunk more than $50 million into the venture and its patience is said to be running out.
The 44.5 per cent Qantas-owned airline last week appointed its third chief executive, Neil Thompson, since it started flying nearly a year ago.
The airline has struggled to gain traffic rights into key routes into China and Indonesia.
It has also struggled to fully utilise its fleet of Airbus 320s, some of which it has had to sublease to a Turkish airline. High fuel prices have compounded its woes.
Amid criticism that Qantas's gung-ho approach in Asia has put some in the region offside, Mr Thompson's appointment is seen as positive. Fluent in mandarin, Mr Thompson could help Jetstar Asia to finally crack the Chinese market.
The signing of an air services pact between Singapore and China last week could also help.
This allows "airlines of both countries to operate passenger and all-cargo services between China and Singapore with no restrictions on capacity, routing or aircraft type", a Singapore Government statement said."
As has been done to death elsewhere by me, Jetstar Asia was NOT a good idea for a variety of strategic reasons.
Jetstar International on the other hand, just might work. But again, the old Sydney paranoia reappears. Is QF going to feed all the business class traffic via Sydney and leave other state capitals with economy "direct flights"? It is a serious determinant of the location of international inbound investment. NSW has had the lions share for the last twenty years thanks to QF's hubbing strategy.
Jetstar International on the other hand, just might work. But again, the old Sydney paranoia reappears. Is QF going to feed all the business class traffic via Sydney and leave other state capitals with economy "direct flights"? It is a serious determinant of the location of international inbound investment. NSW has had the lions share for the last twenty years thanks to QF's hubbing strategy.
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Right.
So, by then, if you want to travel to the said places to which they intend to operate, you have a choice.
You can travel with Qantas. Hmmm.
You can travel with JetStar Asia. Ugh.
You can travel with JetStar International. Sheesh!
You can travel with Australian Airlines. Pfft.
Or, you can do what seems to be becoming the more common option and travel with an asian carrier!
I wish them luck...how much room is there for all these subsidiaries?
520.
You can travel with Qantas. Hmmm.
You can travel with JetStar Asia. Ugh.
You can travel with JetStar International. Sheesh!
You can travel with Australian Airlines. Pfft.
Or, you can do what seems to be becoming the more common option and travel with an asian carrier!
I wish them luck...how much room is there for all these subsidiaries?
520.
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What a shame you will have to go through Sydney Sunfish. Perhaps you could make the most of the stopover if you want to see the AFL premiership cup. You don't get to see that in Melbourne anymore. 
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Cont 520,
I have flown with QF on more occassions than I care to remember. Never flown Jetstar. I have on occassion flown Australian Airlines and it has always been an incredibly good experience. Always one that I won't forget in a hurry. Perhaps you have.....perhaps not. But I don't think they deserve to be bundled up in the same category as QF. A very different attitude to customer service there compared to the parent company. My 5 cents...........
I have flown with QF on more occassions than I care to remember. Never flown Jetstar. I have on occassion flown Australian Airlines and it has always been an incredibly good experience. Always one that I won't forget in a hurry. Perhaps you have.....perhaps not. But I don't think they deserve to be bundled up in the same category as QF. A very different attitude to customer service there compared to the parent company. My 5 cents...........
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Onya - I believe the Qantas board know how good the Australian Airlines product and airline is. They know that it is totally different. I don't think they (AO) will be forgotten.
As for the subject title of this topic - What does this mean for Australian ? Well I think last weeks press releases may answer some questions.
Australian Airlines today announced it would commence double daily services between Tokyo and Cairns from mid-2006.
Qantas will withdraw from the Tokyo-Cairns route.
As a result of these changes, the Qantas Group will offer more than 500 additional seats each week between Tokyo and Cairns.
Australian Airlines Chief Executive Andrea Staines said the addition of the Tokyo to Cairns services would complement the airline’s existing network of holiday routes.
Ms Staines said that as a full-service international leisure carrier, Australian Airlines was well suited to cater for the needs of travellers between Tokyo and Cairns, the majority of whom were holidaymakers.
“With 14 weekly services between Tokyo and Cairns, Australian Airlines will offer almost double its current number of services between Japan and Australia.
“This represents a major expansion of services from our most important inbound visitor market, with Japanese travellers accounting for more than half of all passengers on our flights. We will take delivery of a sixth Boeing 767-300 in mid-2006 to accommodate this extra flying.
“Australian Airlines also operates non-stop services to Cairns from the Japanese cities of Osaka, Nagoya and Sapporo – and is the only airline to do so.”
Ms Staines said that as part of these schedule changes, and due to a lack of demand, Australian Airlines would suspend its thrice-weekly service between Cairns and Fukuoka from the end of March.
Australian Airlines flights from Tokyo will operate non-stop to Cairns with connections to the rest of Australia on Australian Airlines, Qantas and Jetstar.
It is planned that the existing codeshare arrangement with Japan Airlines on Qantas-operated services between Cairns and Tokyo will continue uninterrupted when Australian Airlines commences operating on the route mid-2006. Qantas also intends to codeshare on these services to facilitate selling on the route.
These new arrangements on the route are subject to government approval.
***********************************************
Australian Airlines today announced it would introduce a Premium Economy cabin from mid-2006.
Australian Airlines currently offers an all-Economy cabin of 271 seats, which will be reconfigured as 28 Premium Economy seats and 238 Economy seats.
Australian Airlines Chief Executive Andrea Staines said the main features of Australian Airlines’ Premium Economy product would include more spacious seating, priority boarding and priority meal service.
Ms Staines said the introduction of Premium Economy would give customers more choice.
“The introduction of Premium Economy is an extension of our full-service, international leisure product offering.
“Customers can choose the benefits of a Premium Economy product, which offers more leg room, seat width and seat recline.”
Premium Economy will go on sale in early 2006 with fare levels to be announced closer to the time.
As for the subject title of this topic - What does this mean for Australian ? Well I think last weeks press releases may answer some questions.
Australian Airlines today announced it would commence double daily services between Tokyo and Cairns from mid-2006.
Qantas will withdraw from the Tokyo-Cairns route.
As a result of these changes, the Qantas Group will offer more than 500 additional seats each week between Tokyo and Cairns.
Australian Airlines Chief Executive Andrea Staines said the addition of the Tokyo to Cairns services would complement the airline’s existing network of holiday routes.
Ms Staines said that as a full-service international leisure carrier, Australian Airlines was well suited to cater for the needs of travellers between Tokyo and Cairns, the majority of whom were holidaymakers.
“With 14 weekly services between Tokyo and Cairns, Australian Airlines will offer almost double its current number of services between Japan and Australia.
“This represents a major expansion of services from our most important inbound visitor market, with Japanese travellers accounting for more than half of all passengers on our flights. We will take delivery of a sixth Boeing 767-300 in mid-2006 to accommodate this extra flying.
“Australian Airlines also operates non-stop services to Cairns from the Japanese cities of Osaka, Nagoya and Sapporo – and is the only airline to do so.”
Ms Staines said that as part of these schedule changes, and due to a lack of demand, Australian Airlines would suspend its thrice-weekly service between Cairns and Fukuoka from the end of March.
Australian Airlines flights from Tokyo will operate non-stop to Cairns with connections to the rest of Australia on Australian Airlines, Qantas and Jetstar.
It is planned that the existing codeshare arrangement with Japan Airlines on Qantas-operated services between Cairns and Tokyo will continue uninterrupted when Australian Airlines commences operating on the route mid-2006. Qantas also intends to codeshare on these services to facilitate selling on the route.
These new arrangements on the route are subject to government approval.
***********************************************
Australian Airlines today announced it would introduce a Premium Economy cabin from mid-2006.
Australian Airlines currently offers an all-Economy cabin of 271 seats, which will be reconfigured as 28 Premium Economy seats and 238 Economy seats.
Australian Airlines Chief Executive Andrea Staines said the main features of Australian Airlines’ Premium Economy product would include more spacious seating, priority boarding and priority meal service.
Ms Staines said the introduction of Premium Economy would give customers more choice.
“The introduction of Premium Economy is an extension of our full-service, international leisure product offering.
“Customers can choose the benefits of a Premium Economy product, which offers more leg room, seat width and seat recline.”
Premium Economy will go on sale in early 2006 with fare levels to be announced closer to the time.
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Sunfish,
Could we pleeeease have just one Qantas/Jetstar thread where you don't get on your "Sydneycentric high horse".
I mean come on man, I am a Melbourne boy through and through but even I can see the economic sense in having a major hub in the country's largest city!! When international airline's fly into the USA, you don't see them flying into Melbourne, Florida do you? They go to the country's major gateways Los Angeles and New York! The punters want access to the Major city's of the world (New York, London, Paris, Rome, Sydney, etc) not a return ticket to Avalon.
On another note, I never seem to have any problems getting direct flights on QF out of Melbourne to anywhere I want to go. London (with a stop of course), Japan, Los Angeles, Singapore, New Zealand, you name it!!
Cheers, HH.
PS I commend you on your thread regarding Dick Smith's comments, great stuff!
Could we pleeeease have just one Qantas/Jetstar thread where you don't get on your "Sydneycentric high horse".
I mean come on man, I am a Melbourne boy through and through but even I can see the economic sense in having a major hub in the country's largest city!! When international airline's fly into the USA, you don't see them flying into Melbourne, Florida do you? They go to the country's major gateways Los Angeles and New York! The punters want access to the Major city's of the world (New York, London, Paris, Rome, Sydney, etc) not a return ticket to Avalon.
On another note, I never seem to have any problems getting direct flights on QF out of Melbourne to anywhere I want to go. London (with a stop of course), Japan, Los Angeles, Singapore, New Zealand, you name it!!
Cheers, HH.
PS I commend you on your thread regarding Dick Smith's comments, great stuff!
