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Jetstar dumps MEL-HNL

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Old 7th Aug 2007, 22:48
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Jetstar dumps MEL-HNL

Looks like all is not going as well at Jet* international as they would have us believe.

It appears Jetstar are now going back to the old Qantas Tactic of herding people through Sydney before they go anywhere. Just once, I'd like them to try and stimulate the market before making such moves. However, as with everything else at Qantas, "That's the way we've always done it & that's the way we're going to do it in future".

Any wonder the place is stuffed!


August 08, 2007 12:00am
JETSTAR will axe its direct Melbourne-Honolulu service after just eight months because ticket sales failed to meet targets set by the discount carrier.

The twice-a-week Airbus A330 service from Tullamarine will end on October 28.

It will be replaced by direct flights from Sydney, where the number of services to the US holiday destination will be increased to five a week.

Jetstar will announce the decision today, citing lower seat factors and operational performance.

The Qantas offshoot would continue to operate flights from Melbourne to Bangkok, Bali and Christchurch, he said, adding that the company was also working with Tourism Victoria to develop other international services from Melbourne.

They include a planned Melbourne-Athens service late next year.

Jetstar passengers booked on Honolulu flights from Melbourne after October 28 will be moved to Qantas and Jetstar domestic for their flights to Sydney where they will board their flight to Hawaii.

The Melbourne-Honolulu service, begun on December 29 last year, was the last of the international flights Jetstar launched from Melbourne.

It had a troubled start, with about 300 Australians stranded in Honolulu on one occasion, costing the Qantas offshoot more than $1 million to repatriate them after two of its jets developed faults.
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Old 8th Aug 2007, 00:46
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Where is Sunfish?

His erudite comments would be good to read!
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Old 8th Aug 2007, 00:54
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It will be replaced by direct flights from Sydney, where the number of services to the US holiday destination will be increased to five a week.
Jetstar will by their own admission have 5 flights a week. Qantas have three a week. Implied conclusion is that they will be going 'head to head' one day a week. Optionally, Qantas will soon withdraw one of its three flights. Is this the thin end of the wedge with yet another route being given to the low cost off-shoot?

No wonder Jetstar reckon they can make money, especially when they don't have to bear any real costs developing a route? Apart from Phuket, what have they operated that is new?
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Old 8th Aug 2007, 02:26
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Ahhh......try Saigon!
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Old 8th Aug 2007, 02:36
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Wrong..... try again
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Old 8th Aug 2007, 03:14
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So when did QF fly SGN? I'm pretty confident that it has been some between QF ending and JQ starting, so how would that be JQ building on an established route?
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Old 8th Aug 2007, 03:39
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Jetstar treat pax like nongs

Perhaps if Jetstar got customer friendly instead of charging a pax $ 600 to change a passenger name on a ticket at last minute because the original booked pax was ill they would get more pax on their International services. Also pax stranded at Overseas locations with defective aircraft and not much help from big brother at QF in lending aircraft in getting pax back home does not go well with the punters.
Now today Jetstar put out some spin PR crap that they will protest the VECAT decision in that they defend their right for pax to be able to change their bookings at the last minute . The dispute was not over that at all it was they charged $ 600 admin fee to change the name on an originally booked fare of $ 349 which was outrageous. Any fare for altering the booking to another realative should be the actual admin cost involved like $ 50 not an outrageous $ 600 rip off fee . Jetstar deserved to lose the case and they did - they should alter their policy not put out a pile of spin that is utter BS and has nothing to do with the original issue.
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Old 8th Aug 2007, 04:05
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Their F#ckups cost Jetstar jack. The real bearer of the cost is QF. Most people have no idea of the shifting of costs that goes on behind the scenes here.
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Old 8th Aug 2007, 04:24
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Do you??????

Prove it!

Just once I would like to see some figures put to the accusations that Jetstar is propped up by Qantas mainline, and not the usual 'my friends mum whose friend works for the assistant to the special boss of widgets said....'

Surely the fact that Jetstar bore losses for 8 months on the route whilst Syd - Hnl kicked goals is a fair attempt to give the route a go.

If Mel punters do not support local services then they loose them, simple as that. What is the problem? Airlines are a business, not public transport (despite the type of pax that Jetstar attract)
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Old 8th Aug 2007, 04:36
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Too much too soon?

It was always going to be a bold moove for J*int to operate the routes it does with only 4, now 5 a/c. Thier aircraft utilization leaves no ground time for maintenance, so when the $hit hits the fan the knock on effect is huge.
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Old 8th Aug 2007, 04:41
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How many times have you booked a flight and the name is NON-TRANSFERABLE........

Me thinks some people need to get off their soap boxes.....
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Old 8th Aug 2007, 04:45
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It was always going to be a bold moove for J*int to operate the routes it does with only 4, now 5 a/c
Some would call it foolhardy or even ignorant. There are many medium to longhaul carriers with higher utilisation than JQ but they know how to manage it. Are Jetstar too greedy for their boots?
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Old 8th Aug 2007, 04:53
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So when did QF fly SGN? I'm pretty confident that it has been some between QF ending and JQ starting, so how would that be JQ building on an established route?
EBT, when QF ceased operating B767's between SYD and SGN, they established a code share with Vietnam Airlines and have been selling seats on the route since then. J* Intl was then gifted that established route.
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Old 8th Aug 2007, 05:15
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Funny you suggest we ought prove it JJW

It is extremely difficult for any analyst to prove or disprove the propping up of Jetstar as nothing is presented in accounts which show J* as a stand alone entity.

It is an interesting thing that they miraculously make money, yet thier start up cost for so many routes are minute. Compare it to any other airline in its first three years of operations. Have a look at the cost of start up route development and the other things required to build an airline and you will begin to realise those of us with a financial bent doubt the assertion J* makes money.

Of course it is a group thing, as Dixon would love you beleive but he has said if a segment cant return its cost of capital it will go....

Let's see how J* looks when the new accounting provisions mean more transparency and Tiger get into their wafer thin yield....

You see only so many things can be gifted before the tree from which the bastard child is fed starts to wither....

FOG
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Old 8th Aug 2007, 06:55
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Not to mention the piggyback ride Jetstar gets from Qantas' advertising and customer base....Jetstar never had to build one - it inherited it. Cost saving incalculable.
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Old 8th Aug 2007, 08:03
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Why should QF bail out J*?

If the model is so successful and my training,experience and model under which I work so outdated, let it stand alone, let us see who is a legacy...

The interesting thing is the new provisions of disclosure will provide some transparency..

My whole point on cost is that J* built nothing, it was gifted everything....
From routes to aircraft to underwriting, cost of fuel, a paperclip or a pencil...They paid market price for nothing, otherwise the start up costs would mimick any other start up...But they dont...

Show the markets an audited set of stand alone financials Geoff....


FOG
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Old 8th Aug 2007, 09:11
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Gee whiz Bula ,condition lever ,vh-jjw,a320 ,etc
might be time to re-read section 35 of your agreement !
oh yeah
FOG
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Old 8th Aug 2007, 10:11
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Qf insider , GB

Why do you continually try and slander JQ, like it or not they are here to stay.....GET OVER IT!!!!!!!!!!

did you both read the mel heral/sun last week.....regarding the article in the business section titled "Jetstar flies the rescue of Qantas", I believe they also stated the JQ will make a profit of 100 mill, not a bad effort for a new airline....and that if it was not for JQ reducing costs on QF non profitable routes it would have placed a lot of pressure on QF to make money!!!

You two need to move on, JQ will continue to expand if you like it or not!!!!!

On a final note, domestic is going great guns with near full loads most of the time!!!!!
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Old 8th Aug 2007, 10:18
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also stated the JQ will make a profit of 100 mill, not a bad effort for a new airline....
Can't you read? Or is comprehension a problem...they make a profit precisely because they DO NOT PAY for many things that any usual start up - stand alone carrier would have to pay for...the profit is merely creative accounting to disguise the support from the donor airline.
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Old 8th Aug 2007, 10:33
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IC,

does it hurt you to see JQ doing well in most areas?

You and your QF mates who continually try and justify why JQ should not exist should give it a rest!!!!! JQ is here to stay..Like it or NOT!!!!!

They are the same company for crying out loud and there is place for both LCC and full service (or lack of)...

Would you like to see ticket prices be where they were 10 years ago!!!!!

From all reports both parts of the company are doing well, and I tell you what, if GD wants to cut costs further it won't be JQ who suffers!!!!


Also I think it would pay for AIPA to get the JQ pilots on side as a new eba is only 12 months away and if it goes through whilst the mainline SH EBA is open, look out!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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