JETSTAR ASIA'S profit falls 80 per cent last financial year
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Geesh, even the taxi fare to the airport costs more than that. So, is that Jetstar Asia's business strategy then? Sell cheap fares but make their money on the add-ons? If so, why not just setup a chicken rice stall at Changi?
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Bus driver 007
My point exactly. My understanding was QF are relying on the return of the A330's as part of the business plan to better serve the Australian West Coast & improve the inflight offering to destinations like HNL & Asia.
After the grounding if the 787, my best guess as to what business unit will suffer is the mainline
My point exactly. My understanding was QF are relying on the return of the A330's as part of the business plan to better serve the Australian West Coast & improve the inflight offering to destinations like HNL & Asia.
After the grounding if the 787, my best guess as to what business unit will suffer is the mainline
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Just check the average SINKUL fares in Jan and Feb (excluding the Chinese New Year long weekend around 7 to 12 Feb). Most flights have a base fare of $0. Others are $2. the morning and evening peak flights are $10.
Jetstar Asia's Chicken Rice is SGD12. Tiger's is SGD10 (from the same caterer). Air Asia's is about SGD4 from their KUL caterer.
Jetstar Asia's Chicken Rice is SGD12. Tiger's is SGD10 (from the same caterer). Air Asia's is about SGD4 from their KUL caterer.
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So who really pays for the introduction of the 787 into J* Asia? How will they be able to sublease back to J* when they will not be operating them? How much will the introduction cost and how will it effect the bottom line? Given the margins are sooooo thin will chicken with rice be enough to keep them out of the red. Fuel savings will easily be diluted with the inevitable delays always associated with a new type and the unresolved tech issues which are becoming obvious. The grounding of the 787 fleet worldwide does not bode well for J* Asia's acceptance of line number 123 788 airframe in September/October this year. I also note that the assembly number data shows VH registration. Don't know if this just an assumption based on the parent company being Australian or for some other reason. Can the aircraft be registered in OZ and be flown by J* Asia based in Singapore?
Jet* Asia, Jet * Australia, Jet * International, Jet * Domestic, it doesn't matter. I find all of the threads interesting but keep wondering, who is responsible for keeping these airlines flying?
Then, I was reading about Rio Tinto and could not help but think of QF, the CEO and the board. just replace the company names and the CEO's names and it does make you wonder.
Read more: Rio's wake-up call for investors
Then, I was reading about Rio Tinto and could not help but think of QF, the CEO and the board. just replace the company names and the CEO's names and it does make you wonder.
Well, colour me surprised. A mining company that favoured scale over discretion has got itself into trouble by overpaying – again.
The company in question – and in the headlines – is Rio Tinto (ASX: RIO), which has lost its chief executive, Tom Albanese, by "mutual agreement" with the board.
We don't know how the conversation went down, but you can imagine there weren't a lot of words necessary when as chief executive you recommended that the board approve the second multi-billion-dollar write-down in quick time.
My guess is that Albanese was already mentally preparing to pack up his office and clean out his desk before he even finalised the numbers.
(How boards of directors manage to survive when chief executives are dumped is something of a modern mystery. They approve the company strategy and large acquisitions, after all, so the buck stops also with them.)
When bad news is good news
Ironically, Rio Tinto's share price opened up a couple of percentage points this morning – likely because investors were happy that the problem wasn't worse.
The company in question – and in the headlines – is Rio Tinto (ASX: RIO), which has lost its chief executive, Tom Albanese, by "mutual agreement" with the board.
We don't know how the conversation went down, but you can imagine there weren't a lot of words necessary when as chief executive you recommended that the board approve the second multi-billion-dollar write-down in quick time.
My guess is that Albanese was already mentally preparing to pack up his office and clean out his desk before he even finalised the numbers.
(How boards of directors manage to survive when chief executives are dumped is something of a modern mystery. They approve the company strategy and large acquisitions, after all, so the buck stops also with them.)
When bad news is good news
Ironically, Rio Tinto's share price opened up a couple of percentage points this morning – likely because investors were happy that the problem wasn't worse.
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The chess board pieces are a changing.
Will be interesting to see how Jetstar Hong Kong goes with Hong Kong Express' transformation to a LCC. Last I heard was HKE will get 15 * A320's to go up against CX & the yet to be approved JQ HKG.
No doubt JQ HKG will also be an ammaaaaazing business.
Will be interesting to see how Jetstar Hong Kong goes with Hong Kong Express' transformation to a LCC. Last I heard was HKE will get 15 * A320's to go up against CX & the yet to be approved JQ HKG.
No doubt JQ HKG will also be an ammaaaaazing business.
Jetstar Hong Kong's approval is on hold awaiting direction from Beijing...Which means let us get 2 airlines up and running and then we will give you the scraps...How dumb is this crowd running Jetstar...Everyone in Asia want them to come their way so they can skin them alive....
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A colleague informed me this morning of the "rumour" appropriate cost allocation has been happening the last 6 months.
Seems the new QF International & Domestic CEO's Hickey & Strambie aren't prepared to wear the costs of Jetstar.
Combined that with rumours AIPA were talking to Institutional Investors about cost allocation.
Enter Hrdlicka. The "fall guy" who was "surprised" at the offer of the JQ CEO position.
Cue. JQ Asia's profit fall & AJ's promise of turning QF International around.
Seems the new QF International & Domestic CEO's Hickey & Strambie aren't prepared to wear the costs of Jetstar.
Combined that with rumours AIPA were talking to Institutional Investors about cost allocation.
Enter Hrdlicka. The "fall guy" who was "surprised" at the offer of the JQ CEO position.
Cue. JQ Asia's profit fall & AJ's promise of turning QF International around.
Last edited by Mstr Caution; 19th Jan 2013 at 02:41.
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By Mstr Caution The chess board pieces are a changing.
Will be interesting to see how Jetstar Hong Kong goes with Hong Kong Express' transformation to a LCC. Last I heard was HKE will get 15 * A320's to go up against CX & the yet to be approved JQ HKG.
No doubt JQ HKG will also be an ammaaaaazing business.
Will be interesting to see how Jetstar Hong Kong goes with Hong Kong Express' transformation to a LCC. Last I heard was HKE will get 15 * A320's to go up against CX & the yet to be approved JQ HKG.
No doubt JQ HKG will also be an ammaaaaazing business.
Jetstar Hong Kong, waiting, waiting ... | Plane TalkingBy Andrew Pyne
Dealing with the mosaic of different regulatory environments that constitute the Asian aviation scene has been a challenge for the region’s low cost carriers: by contrast the likes of Southwest and Ryanair have grown up in a single aviation environment, not having to worry about bilateral traffic rights and securing cross border designations.
The chosen model for Asia’s most successful LCCs has been to deal with regulatory barriers to market entry by cross border establishment: Tiger, Air Asia and Jetstar have all pursued this route with varying degrees of success. In Jetstar’s case for every Singapore there has been a Vietnam: undoubted success followed by relative failure. Nonetheless, just over a year ago the markets and the media reacted warmly to Jetstar’s efforts to establish a Hong Kong offshoot.
Those who suggested, firstly, that the plan was incompatible with Hong Kong’s much cherished aviation autonomy and secondly, that in any event Hong Kong was the wrong base from which to penetrate the China market were in a small minority with our views largely dismissed: Qantas had done its homework and in any case China Eastern was on hand to lend some muscle if the door stuck on its hinges.
I hold no ill will towards either Qantas or Jetstar but as someone who worked hard to buttress Hong Kong’s aviation autonomy during the 1990s, it does give me some satisfaction to see that the current generation of Hong Kong civil servants are not quite the pushover that Mr Joyce and his acolytes at Jetstar initially imagined them to be.
Hong Kong’s aviation autonomy didn’t fall from the skies: it was the product of many years of patient negotiation between Britain and China; followed by many more years of patient negotiation with Hong Kong’s aviation partners who all needed reassurance that the then very novel Incorporation and Principal Place of Business (IPPB) designation formula would not be exploited as an aviation flag of convenience. To its great credit Australia was the first aviation partner to sign an agreement with Hong Kong. The irony of the Australian flag carrier being the first to seriously try and exploit the position will not be lost on this readership!
As a projected early 2013 launch now slides into a late 2013 launch, three things are apparent: first that Qantas and Jetstar did not do their homework; secondly that betting on China Eastern in an Air China dominated region was neither a smart nor a well-informed move and thirdly, that QF now need someone or something to help them escape from this mess with face intact.
Too late now I suspect to mend fences with Cathay Pacific, and by proxy with Air China: CX was reportedly ‘furious’ over what they viewed as Mr Joyce’s duplicity over the original announcement; apparently reassuring CX seniors that QF had no intent to get involved in low cost in Hong Kong just days before the public announcement. They are now no doubt enjoying watching Alan Joyce squirm. There are however other potential partners: Hong Kong Airlines, which has often talked about its low cost aspirations could be one, although probably as a substitute for China Eastern rather than alongside it.
And there are of course a plethora of local non airline partners to consider. It does however seem certain that the new airline if and when it finally emerges from the chrysalis will not be styled ‘Jetstar Hong Kong’ but will carry a distinctively local branding and will be constrained as to what it can do in terms of integration into and commerce with the rest of the QF/JQ family.
A stand alone Hong Kong LCC is far from the original plan unveiled last year but by the same token the strategic logic behind choosing Hong Kong as a base for low cost operations in China was always fundamentally flawed. If it made sense to set up an LCC in Hong Kong to serve the China market you can bet that Cathay Pacific or a local tycoon – or even a Tony Fernandes – would have seized the opportunity a long time ago.
Hong Kong is one of the most expensive airports in the world: who would for example base a European LCC at Heathrow? Hong Kong/Mainland China traffic rights are not truly domestic: their regulation is akin to a bilateral relationship: who would base an Australian focused LCC in Port Moresby? And finally in choosing Hong Kong as a base Qantas in effect declared war on Cathay Pacific and Air China, two powerful and influential enemies: neatly killing two birds with one stone and at the same time severely undermining the cohesion of the oneworld alliance.
A year ago I suggested that it was time for Mr Joyce to go back to the drawing board: that now seems unlikely to happen. Somehow, and in a very different shape and form to that originally conceived, this project will limp through the starting gate. The question that Qantas shareholders might be asking themselves is whether, with all the compromises entailed and the rancour induced, this particular game was worth the candle.
Dealing with the mosaic of different regulatory environments that constitute the Asian aviation scene has been a challenge for the region’s low cost carriers: by contrast the likes of Southwest and Ryanair have grown up in a single aviation environment, not having to worry about bilateral traffic rights and securing cross border designations.
The chosen model for Asia’s most successful LCCs has been to deal with regulatory barriers to market entry by cross border establishment: Tiger, Air Asia and Jetstar have all pursued this route with varying degrees of success. In Jetstar’s case for every Singapore there has been a Vietnam: undoubted success followed by relative failure. Nonetheless, just over a year ago the markets and the media reacted warmly to Jetstar’s efforts to establish a Hong Kong offshoot.
Those who suggested, firstly, that the plan was incompatible with Hong Kong’s much cherished aviation autonomy and secondly, that in any event Hong Kong was the wrong base from which to penetrate the China market were in a small minority with our views largely dismissed: Qantas had done its homework and in any case China Eastern was on hand to lend some muscle if the door stuck on its hinges.
I hold no ill will towards either Qantas or Jetstar but as someone who worked hard to buttress Hong Kong’s aviation autonomy during the 1990s, it does give me some satisfaction to see that the current generation of Hong Kong civil servants are not quite the pushover that Mr Joyce and his acolytes at Jetstar initially imagined them to be.
Hong Kong’s aviation autonomy didn’t fall from the skies: it was the product of many years of patient negotiation between Britain and China; followed by many more years of patient negotiation with Hong Kong’s aviation partners who all needed reassurance that the then very novel Incorporation and Principal Place of Business (IPPB) designation formula would not be exploited as an aviation flag of convenience. To its great credit Australia was the first aviation partner to sign an agreement with Hong Kong. The irony of the Australian flag carrier being the first to seriously try and exploit the position will not be lost on this readership!
As a projected early 2013 launch now slides into a late 2013 launch, three things are apparent: first that Qantas and Jetstar did not do their homework; secondly that betting on China Eastern in an Air China dominated region was neither a smart nor a well-informed move and thirdly, that QF now need someone or something to help them escape from this mess with face intact.
Too late now I suspect to mend fences with Cathay Pacific, and by proxy with Air China: CX was reportedly ‘furious’ over what they viewed as Mr Joyce’s duplicity over the original announcement; apparently reassuring CX seniors that QF had no intent to get involved in low cost in Hong Kong just days before the public announcement. They are now no doubt enjoying watching Alan Joyce squirm. There are however other potential partners: Hong Kong Airlines, which has often talked about its low cost aspirations could be one, although probably as a substitute for China Eastern rather than alongside it.
And there are of course a plethora of local non airline partners to consider. It does however seem certain that the new airline if and when it finally emerges from the chrysalis will not be styled ‘Jetstar Hong Kong’ but will carry a distinctively local branding and will be constrained as to what it can do in terms of integration into and commerce with the rest of the QF/JQ family.
A stand alone Hong Kong LCC is far from the original plan unveiled last year but by the same token the strategic logic behind choosing Hong Kong as a base for low cost operations in China was always fundamentally flawed. If it made sense to set up an LCC in Hong Kong to serve the China market you can bet that Cathay Pacific or a local tycoon – or even a Tony Fernandes – would have seized the opportunity a long time ago.
Hong Kong is one of the most expensive airports in the world: who would for example base a European LCC at Heathrow? Hong Kong/Mainland China traffic rights are not truly domestic: their regulation is akin to a bilateral relationship: who would base an Australian focused LCC in Port Moresby? And finally in choosing Hong Kong as a base Qantas in effect declared war on Cathay Pacific and Air China, two powerful and influential enemies: neatly killing two birds with one stone and at the same time severely undermining the cohesion of the oneworld alliance.
A year ago I suggested that it was time for Mr Joyce to go back to the drawing board: that now seems unlikely to happen. Somehow, and in a very different shape and form to that originally conceived, this project will limp through the starting gate. The question that Qantas shareholders might be asking themselves is whether, with all the compromises entailed and the rancour induced, this particular game was worth the candle.
The answer is simple guys, and just so obvious.
There is a clear need for a Group Manager Muffin Sales with a department behind them to streamline a new onboard sales program. ('Muffin 2020')??
Muffin Sales must be increased, and this new team under (insert idiot here) will be instrumental in the entire Group's 'Turnaround Strategy To Profitability'.
I also should pay tribute to one25six's outstanding contribution. Clearly he and I are on the same page. It is this type of 'out of the box' management brilliance that will see the two of us with lifetime Charimans Club access and some really good bonuses
There is a clear need for a Group Manager Muffin Sales with a department behind them to streamline a new onboard sales program. ('Muffin 2020')??
Muffin Sales must be increased, and this new team under (insert idiot here) will be instrumental in the entire Group's 'Turnaround Strategy To Profitability'.
I also should pay tribute to one25six's outstanding contribution. Clearly he and I are on the same page. It is this type of 'out of the box' management brilliance that will see the two of us with lifetime Charimans Club access and some really good bonuses
Last edited by V-Jet; 31st May 2013 at 04:45.
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Have you seen the muffin man, the muffin man
Oh yes, all that excellent advice AJ receives from the Board is paying off? What a bunch of complete nuptys, shonks and used car salesmen.
And Cosgrove looks as though he has well and truly been sampling all those muffins!
I would rather invest my money in one of Labor's lame arse ideas than in QF.
Profit drop of 80%? Well it's consistent with what Joyce achieves, I believe QF's profits have dropped by 80% since 'wee man' took over from ol scrotum face.
10/10 for consistency AJ
And Cosgrove looks as though he has well and truly been sampling all those muffins!
I would rather invest my money in one of Labor's lame arse ideas than in QF.
Profit drop of 80%? Well it's consistent with what Joyce achieves, I believe QF's profits have dropped by 80% since 'wee man' took over from ol scrotum face.
10/10 for consistency AJ
Last edited by Cactusjack; 31st May 2013 at 11:31.
Good questions for Ms AJ, Wendy....
1987 Federal Election - ALP Ads 12/18 - YouTube
It's too good to ignore. Given 'Piggy' Howes affiliation with the glamorous Ms Wirth (Miss Piggy??) the jokes (and tragically the money theft) only get better - nice to point out...
Muffin Songs - The Muffin Man | nursery rhymes & children songs with lyrics | muffin songs - YouTube
At heart, I am a small, simple, petty man who does seem to have some capacity for harboring grudges when these scum ruin my life's work...
PS: Unfortunately I have to inform the reader that whilst Group Profits (if I can arrogantly use that term) have dropped 80%, the 'wee man's' (Muffin Man) personal profit has increased 800%
PPS: Andy. The Milliner
hehehehehe Perfect choice for Manager, Inflight Bakery Resources
1987 Federal Election - ALP Ads 12/18 - YouTube
It's too good to ignore. Given 'Piggy' Howes affiliation with the glamorous Ms Wirth (Miss Piggy??) the jokes (and tragically the money theft) only get better - nice to point out...
Muffin Songs - The Muffin Man | nursery rhymes & children songs with lyrics | muffin songs - YouTube
At heart, I am a small, simple, petty man who does seem to have some capacity for harboring grudges when these scum ruin my life's work...
PS: Unfortunately I have to inform the reader that whilst Group Profits (if I can arrogantly use that term) have dropped 80%, the 'wee man's' (Muffin Man) personal profit has increased 800%
PPS: Andy. The Milliner
hehehehehe Perfect choice for Manager, Inflight Bakery Resources
Last edited by V-Jet; 31st May 2013 at 12:26.
