The Orange Cancer Spreads
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The Orange Cancer Spreads
Jetstar eyes Japanese domestic market
Qantas's budget offshoot, Jetstar, is reportedly planning to enter the challenging domestic market in Japan by forming a joint venture with local investors.
Jetstar and its Singapore-based joint venture, Jetstar Asia, already fly international routes from Australia and Singapore to Japan. But the Yomiuri newspaper has reported that Jetstar plans to raise funds from Japanese investors to form a joint venture to fly domestic routes. Under foreign investment rules, Japan requires domestic airlines to have less than a third of foreign capital.
Although Japan presents enormous opportunities, any plan to enter the country's domestic market would be fraught with difficulties because it is regarded as a relatively closed market. The country's two major carriers, Japan Airlines and All Nippon, are also considering forming low-cost subsidiaries.
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"I would have a crack at south-east Asian markets before I'd have a crack at Japan – it's really tough," an industry insider said. "China would be the hardest, followed by Japan."
The Yomiuri newspaper reported that Jetstar and China's Spring Airlines has approached Japan's transport ministry to inform them of their plans and seek approval.
A Jetstar spokesman could not comment immediately on the report.
Jetstar has been emphasising its intention to form other joint ventures in Asia in order to expand its footprint in the world's fastest growing aviation market.
Any joint venture in Japan is likely to be modelled on Jetstar Asia, the Singapore-based airline in which Qantas has a 49 per cent stake and Singaporean businessman Dennis Choo the rest.
Qantas also part-owns a stake in Vietnam's second-largest airline, Jetstar Pacific.
Qantas's chief executive, Alan Joyce, has highlighted his desire to form alliances with other Asian airlines, especially as its premium international operations face increased competition.
Macquarie Equities believes Qantas will cement a closer relationship with JAL before turning its attention to courting another Asian partner. Qantas has a code-share agreement with JAL between Australia and Japan.
Qantas's budget offshoot, Jetstar, is reportedly planning to enter the challenging domestic market in Japan by forming a joint venture with local investors.
Jetstar and its Singapore-based joint venture, Jetstar Asia, already fly international routes from Australia and Singapore to Japan. But the Yomiuri newspaper has reported that Jetstar plans to raise funds from Japanese investors to form a joint venture to fly domestic routes. Under foreign investment rules, Japan requires domestic airlines to have less than a third of foreign capital.
Although Japan presents enormous opportunities, any plan to enter the country's domestic market would be fraught with difficulties because it is regarded as a relatively closed market. The country's two major carriers, Japan Airlines and All Nippon, are also considering forming low-cost subsidiaries.
Advertisement: Story continues below
"I would have a crack at south-east Asian markets before I'd have a crack at Japan – it's really tough," an industry insider said. "China would be the hardest, followed by Japan."
The Yomiuri newspaper reported that Jetstar and China's Spring Airlines has approached Japan's transport ministry to inform them of their plans and seek approval.
A Jetstar spokesman could not comment immediately on the report.
Jetstar has been emphasising its intention to form other joint ventures in Asia in order to expand its footprint in the world's fastest growing aviation market.
Any joint venture in Japan is likely to be modelled on Jetstar Asia, the Singapore-based airline in which Qantas has a 49 per cent stake and Singaporean businessman Dennis Choo the rest.
Qantas also part-owns a stake in Vietnam's second-largest airline, Jetstar Pacific.
Qantas's chief executive, Alan Joyce, has highlighted his desire to form alliances with other Asian airlines, especially as its premium international operations face increased competition.
Macquarie Equities believes Qantas will cement a closer relationship with JAL before turning its attention to courting another Asian partner. Qantas has a code-share agreement with JAL between Australia and Japan.
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This is hilarious. JQ in Japan. This is the land where +30 seconds late is a delay, a catastrophe, a life changing event. It will be funny watching our Japanese friends have to adjust to a new culture called DELAYED !
Perhaps Boston Bruce will start up Jetstar Bullet Trains as well ?
Well there you have it, from the land that brought us the Geisha, Godzilla and bukkake comes JQ Japan !
Perhaps Boston Bruce will start up Jetstar Bullet Trains as well ?
Well there you have it, from the land that brought us the Geisha, Godzilla and bukkake comes JQ Japan !
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As much as we joke the reality is these JQ 'franchise-like' arrangements are serious threats to Australian T&C's and job security.
Don't forget EVERY QF route approval has been rubber stamped to allow the capacity to be used by QF, JQ or another 'majority' owned subsidiary.
The offshore backdooring by JQ into Australia (ex NZ & SIN) opens the door to deploying the JQ defacto franchsies using the Australian bilateral freedoms.
This form of Agent Orange is far more deadlier - and the real cost will be in the Australian aviation economy and ultimately in pax lives.
AT
Don't forget EVERY QF route approval has been rubber stamped to allow the capacity to be used by QF, JQ or another 'majority' owned subsidiary.
The offshore backdooring by JQ into Australia (ex NZ & SIN) opens the door to deploying the JQ defacto franchsies using the Australian bilateral freedoms.
This form of Agent Orange is far more deadlier - and the real cost will be in the Australian aviation economy and ultimately in pax lives.
AT
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airtags, you are making way too much sense.
Is it just me or is a certain minister facilitating the Cancer growth? Don't look too closely you might start seeing things you don't like.
Is it just me or is a certain minister facilitating the Cancer growth? Don't look too closely you might start seeing things you don't like.
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Oh there will be some feisty young Grade 2 intructors straight off a state of the art GLASS C172 - who have done the hard yards since their high school formal last week who would pay to go to Japan - "look everywun, toldyas - I'm an airline pilot now and stuff"
They think they are being chosen for their skills and experience - ahem - gullability and naievity.
"but it's shiny and sh#t, like my ipod"
They think they are being chosen for their skills and experience - ahem - gullability and naievity.
"but it's shiny and sh#t, like my ipod"
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Onestar -> CRO Airways
Nunc est bibendum
Like the profits that J* Asia has provided Qantas? Oops. That's right, we're about $300 million in the hole on that one thus far. I'm sure that J* Asia will turn a profit one day. I suspect it will be by flying the routes that Qantas used to fly in it's own right (and make a profit on) before they were handed to J* Australia who were then passed them on to J* Asia. 
What about J* Pacific? Are they contributing foreign profits to Qantas yet? How much is Qantas in the hole for them?
Who does the acceptance on J*'s aeroplanes in Toulouse? Where does that cost get attributed to?
What about J* Pacific? Are they contributing foreign profits to Qantas yet? How much is Qantas in the hole for them?
Who does the acceptance on J*'s aeroplanes in Toulouse? Where does that cost get attributed to?
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What about J* Pacific? Are they contributing foreign profits to Qantas yet? How much is Qantas in the hole for them?
Who does the acceptance on J*'s aeroplanes in Toulouse? Where does that cost get attributed to?
Who does the acceptance on J*'s aeroplanes in Toulouse? Where does that cost get attributed to?
'It's All About Choice'
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I'm sure that J* Asia will turn a profit one day.
As for aircraft acceptance in Toulouse, how many people does it involve and how much of the work relates to J*? (This isn't a rhetorical question, I am interested in the numbers).
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QAN_Shareholder (re J*Asia profit figures)
Considering it's only March, you must be quoting 'Insider, Rubbery Figures', if not please tell us all what the overall results for the "first half of this year" were/are/is/will be. I would have thought, only AJ would have access to those figures, at this stage.
....and first half of this year were profitable
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Ben Sandilands speaking on radio station 2UE sunday 13th March.
I recall the discussion as follows: (whilst driving with a few kids in the car)
1. Qantas is a serious concern regarding it's current strategies.
2. The public no longer feel a "special" association with Qantas
3. Jetstar is not the answer to Qantas reduced market share.
4. The bulk of Qantas customers do not want to fly J*. They will fly with another carrier rather than the QF subsidiary.
5. Virgin will continue to benefit from the loss of Qantas customers.
6. The overseas push has affected how the public now view the airline.
7. Qantas will no longer call Australia home. (Singapore & NZ)
8. Pilots possible PIA & ground staff to shortly follow.
I recall the discussion as follows: (whilst driving with a few kids in the car)
1. Qantas is a serious concern regarding it's current strategies.
2. The public no longer feel a "special" association with Qantas
3. Jetstar is not the answer to Qantas reduced market share.
4. The bulk of Qantas customers do not want to fly J*. They will fly with another carrier rather than the QF subsidiary.
5. Virgin will continue to benefit from the loss of Qantas customers.
6. The overseas push has affected how the public now view the airline.
7. Qantas will no longer call Australia home. (Singapore & NZ)
8. Pilots possible PIA & ground staff to shortly follow.
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I think it was last year rather than "one day", both second half of last year and first half of this year were profitable. Tiger is fairly profitable overall and it certainly isn't coming from Australia so Singapore must be doing pretty well. And if Tiger can make very good profits in Singapore it doesn't seem that difficult to believe that J* Asia is profitable.
Foreign exchange is not in there favour either with a 25% loss from SGD to AUD.
Nunc est bibendum
Sadly it appears that Ben Sandiland's assessment is spot on I reckon. The people I speak to who once upon a time flew QF because of our 'history' no longer feel the need to fly with us because we're 'just the same as everyone else'. 
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Jetstar Asia made S$6.9 million last financial year.......about Au$5.4 million. I may be wrong but I think that is the airline's first profit. Not overly impressive considering the money spent on it and the losses that have taken place.
I believe that Jetstar pilots voted a "no confidence in management" motion at meetings regarding the sacking of a pilot for talking to the media.
Though mostly symbolic, is a "no confidence" vote in the management and the board something the mainline pilots should consider and promote?
To change (and hopefully save) the company, you need to change the management and the board, nothing else will suffice. This is beyond any bandaid fixes or reviews.
I would like to see the media reports on 2500+ pilots voting "no confidence" in the current management of this once great airline.
Though mostly symbolic, is a "no confidence" vote in the management and the board something the mainline pilots should consider and promote?
To change (and hopefully save) the company, you need to change the management and the board, nothing else will suffice. This is beyond any bandaid fixes or reviews.
I would like to see the media reports on 2500+ pilots voting "no confidence" in the current management of this once great airline.
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Trent,
By first half of year I mean first half of financial year not calendar year. The figure was S$17m and is shown in Qantas' results presentation from February.
Sunstar,
Where do you get figure for CASK of 6.8c for Jetstar Asia? Is it ex fuel?
if not please tell us all what the overall results for the "first half of this year" were/are/is/will be
Sunstar,
Where do you get figure for CASK of 6.8c for Jetstar Asia? Is it ex fuel?