Future of Jetstar
”In the US, Gross Domestic Product increased from $228 billion in 1945 to just under $1.7 trillion in 1975.”
-wikipedia
I think you are missing my point, which is that those of us hoping to resume flying soon, may be faced with a long wait before things start recovering. Viewed in 50 years this may seem like a small blip (I certainly hope so). But right now passenger airline operations are likely to be impacted for some considerable time.
Join Date: Apr 2009
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And how is that going to attract any business to operate in Australia? If your competitor fails, we'll force you to break up your company so we can have "competition", seriously?
Join Date: Nov 2019
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The feedback from friends and siblings in the corporate world is that Zoom meetings have enforced how important it is to get proper face to face time. Body language, verbal inflections in the voice that are hidden in Zoom meetings, the ability to have quick side chats with multiple players once the ‘formalities’ are done. They all indicate that they can’t wait to get moving again.
As for JQ v QF for whatever corporate travel remains post Covid - well you just have to look at the shift that has occured over the last few years in Europe. Many businesses that once flew their employees business class now use Easyjet, Wizzair and even Ryanair to keep costs down. This pandemic will only accelerate the same shift here in Aus in my opinion.
Experts are saying that at best we could have a vaccine in 12 months. Once that happens, expect mandatory vaccination before many countries will allow entry.
At best in the meantime, some limited travel between countries where the virus is well controlled and with reciprocal arrangements may become possible, eg Australia and New Zealand perhaps.
But with what is happening in Indonesia, Turkey, the USA and enough other places around the world, to get to an agreeable country in Europe would probably require a direct flight. Transit through the usual Middle East suspects is likely to remain a no no.
I have deferred my plans for Europe this year by 12 months.
At best in the meantime, some limited travel between countries where the virus is well controlled and with reciprocal arrangements may become possible, eg Australia and New Zealand perhaps.
But with what is happening in Indonesia, Turkey, the USA and enough other places around the world, to get to an agreeable country in Europe would probably require a direct flight. Transit through the usual Middle East suspects is likely to remain a no no.
I have deferred my plans for Europe this year by 12 months.
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I think your friends and siblings are telling you this to keep you positive my friend. The reality is that Covid19 is showing a lot of businesses how cost effective Skype, Zoom and working from home really is. Unfortunately this will mean a sharp decline in business class and corporate travel in general post Covid19. I am hearing this from people in the corporate world who are licking their lips at the chance to reduce such overheads on the other side of this pandemic.
As for JQ v QF for whatever corporate travel remains post Covid - well you just have to look at the shift that has occured over the last few years in Europe. Many businesses that once flew their employees business class now use Easyjet, Wizzair and even Ryanair to keep costs down. This pandemic will only accelerate the same shift here in Aus in my opinion.
As for JQ v QF for whatever corporate travel remains post Covid - well you just have to look at the shift that has occured over the last few years in Europe. Many businesses that once flew their employees business class now use Easyjet, Wizzair and even Ryanair to keep costs down. This pandemic will only accelerate the same shift here in Aus in my opinion.
whether this returns us to pre-COVID levels of travel I don’t know.... but I have no doubt the corporate travel market will be alive and well post Covid.
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If the Queensland Uni vaccine follows the current path its vaccine could be ready by January. Still a long time from here but faster than originally expected.
I add this comment as input to discussion of the future. If Virgin folds and there is no effective competition to jetstar, then I would expect the Qantas group to strangle the Australian tourist industry. Australia is borderline tourism competitive now(pre covid) there MUST be a competitive travel market or Qantas/Jetstar will just increase prices.
So far for our cancelled winter travel to Europe, we have recovered our airfares and cancelled our accommodation bookings with a loss to date of around $600. The yacht charter in Croatia was moved forward a year at no charge. The italian ferry company is supposedly bankrupt so no refund there.
The saddest part is that we had just perfected our holiday travel methods; A very small car, AirBnB in small towns, avoiding European air travel and substitute car ferry or train. Google and suchlike for restaurants and Waze on the iPad for navigation. If you are not time poor, such an approach is pretty economical compared to say staying in Australia and visiting Broome, Port Douglas or Hamilton Is.
When we look at it overall, two economy tickets with Vietnam Airlines and a couple of nights in Vietnam each way to break the jet lag plus the travel methods mentioned above are pretty good value compared to any Australian destinations. I remember the bad old days - when Qantas had virtual mono poly rights. I did the Melbourne sydney heathrow thing about seven times because I had a homesick British wife. The cost in those days was about $7000 for the three of us. I do not wish to see a return to that pricing (and never Heathrow) if Qantas once again dominated the market. As for domestic travel the charges were astronomical.
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So far for our cancelled winter travel to Europe, we have recovered our airfares and cancelled our accommodation bookings with a loss to date of around $600. The yacht charter in Croatia was moved forward a year at no charge. The italian ferry company is supposedly bankrupt so no refund there.
The saddest part is that we had just perfected our holiday travel methods; A very small car, AirBnB in small towns, avoiding European air travel and substitute car ferry or train. Google and suchlike for restaurants and Waze on the iPad for navigation. If you are not time poor, such an approach is pretty economical compared to say staying in Australia and visiting Broome, Port Douglas or Hamilton Is.
When we look at it overall, two economy tickets with Vietnam Airlines and a couple of nights in Vietnam each way to break the jet lag plus the travel methods mentioned above are pretty good value compared to any Australian destinations. I remember the bad old days - when Qantas had virtual mono poly rights. I did the Melbourne sydney heathrow thing about seven times because I had a homesick British wife. The cost in those days was about $7000 for the three of us. I do not wish to see a return to that pricing (and never Heathrow) if Qantas once again dominated the market. As for domestic travel the charges were astronomical.
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Company I was working for sent out a specific warning about using Zoom for confidential discussions and the ADF has apparently banned the use of it.
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Instead of drawing similarities to the GFC many financial experts are saying that we should be likening this to the great depression. This will give us a better idea of what things will look like post Covid. One thing is certain, airlines will look very different on the other side of this.
Yet during the Great Depression commercial aviation, particularly in the US established itself and flourished. That was at a time when air travel was expensive so if the economists are looking to that period of history for precedent then the future of commercial aviation is not as dismal as some would think.
Evertonian
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I know I've still got that TB scar!
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Getting back on topic re Jetstar. The companies QF owns less than 49% of, I can see them exiting (Jetstar Pacific, Jetstar Japan, etc). As for Jetstar NZ, there's also a good chance of JQ exiting that and transferring those aircraft back to Australian Domestic/Trans-Tasman runs. JQ has already exited regional NZ operations and transferred those aircraft back to QFLink.
Assuming that SIA doesn't have a 4th attempt at the Australian domestic market, I could see QF exiting 3K (Jetstar Asia) being a possibility by selling their 49% stake to another company.
Either way, JQi in Australia is a good chance of being decimated if not folded up entirely. A post COVID-19 JQ-i could have their international flying reduced to just Trans-Tasman, Fiji and Bali "bogan-bus" flying with A320neos and A321LRs, whilst exiting long-haul completely with the 788 fleet transferred to QF mainline.
Assuming that SIA doesn't have a 4th attempt at the Australian domestic market, I could see QF exiting 3K (Jetstar Asia) being a possibility by selling their 49% stake to another company.
Either way, JQi in Australia is a good chance of being decimated if not folded up entirely. A post COVID-19 JQ-i could have their international flying reduced to just Trans-Tasman, Fiji and Bali "bogan-bus" flying with A320neos and A321LRs, whilst exiting long-haul completely with the 788 fleet transferred to QF mainline.
