Not so. You can be sure that many of the airports to which Jet* operate have given them significant financial incentives for them to operate to those airports. Jet* are currently trying to get such a deal with Northern Territory airports so that it can establish a hub in Darwin.

Both Singapore and Malaysia offer incentives to carriers to serve Changi and KLIA respectively as both have large shiny airports that can be better utilised. Same for may other places. Australian airports are also known to offer rental cuts on property leases, reduced handling charges and so on in order to attract new business. Some may even offer funds for a joint advertising promotion.

Jet* would fall into the category of "new operator" and therefore gain a cost advantage over its parent. When the sweetheart deal is over, some carriers will move on and declare that the market to that airport is not economically viable simply because they cannot afford, or choose not to afford, the landing and other charges paid by established airlines.

JQ back to KIX
 

Jet* Resumes Cairns/Osaka. Cairns Base Expands
 

17 March, 2009

INCREASED FLIGHTS GOOD NEWS FOR CAIRNS

The Minister for Tourism, Martin Ferguson AM MP, and the Member for Leichhardt, Jim Turnour, have welcomed today’s decision by Jetstar to reinstate direct international services between Cairns and western Japan on the Cairns-Osaka route
Both the Federal and Queensland governments have worked hard and spent more than $8 million to assist the Tropical North Queensland tourism industry since the Qantas Group cut services between Cairns and Japan last June

Minister Ferguson said: "The Australian Government's response has supported marketing and business development initiatives and resulted in increased charter flights and new international services between Cairns and Japan.

"Today's very welcome announcement by Jetstar builds on these achievements "Australia's tourism industry is presently operating within a volatile global market, so this decision will provide a major boost for the Tropical North Queensland tourism industry Mr Turnour said: Tropical North Queensland is a premier tourist destination and Jetstar's plan to fly an extra four weekly services to Osaka will be welcomed by local tourism operators.

“Increased flights mean increased visitors which of course, mean increased economic activity and jobs for Tropical North Queensland”

Jetstar has also advised their intention to extend its existing Cairns pilot and crew base to include international pilots to support growing operations from the city.

Mr Turnour said: "Marketing investment in Japan to increase awareness and preference to visit Australia will also realise an increase in visitor numbers and assist our important local industry.

“I look forward to working with Jetstar, Queensland Airports, and the local industry to see the realisation of this plan which would increase visitors arriving directly to Cairns from Japan, thereby supporting the local economy and importantly, local jobs.

So much for JQ being a failure in Japan. Loadings are good, and if the wheel falls off, there is always Beijing, the chinese are aplenty on the Gold Coast, especially young tourists.

I wish people would refrain from putting so much emphasis on 'good' loads. I recall Ansett having pretty 'good' loads up to its demise. Front end traffic, plenty of freight and appropriately priced back end tickets ensure a route/airlines long term profitability not simply 'good' loads.

I wonder how the Jetstar boys will take the news that Cairns is to be closed when some moron in an office doesn't like the accounting numbers presented to him at some stage in the future... or Darwin, or Perth. It beggars belief the ambivalent contempt that crew are held in by management down there. Good luck to you.

Its irrelevant if the loads are good going to and from Japan.

Its irrelevant if there is no yield on said loads due to low airfares.

Its irrelevant if the operation is massively cross subsidised.

JQI is about massive ego, hubris and inadequate planning and due dilligence.

Because of that no matter what it will be a 'success' as far as PR and route profit figures go. Even if said figured are doctored to the max.

This thread and others are irrelevant. JQI could lose 200 mil per year (see JQ Asia) and it would still be a 'success'

Well said 8888.

Qld premier throwing $2M into the advertsing programme sealed the deal according to the ABC news.

Smoke and Mirrors
 

As in most countries slot availability is limited.Qantas cant run its own aircraft into many of the Japanese airports...mainline is too expensive(?) and the market has softened.Maintain the slots by gving them to Jet *Only problem is there is a Q of other airlines who would like to have those slots.They cry foul over the Jet* arrangement.So how is all this allowed to happen?What deals have been done to allow this situation to exist.
Jet* is the successful failure protecting QF slots until the time is right for mainline to expand again.
Quite frankly the Japanese are over Australia as a destination.The marketing has been crap.The understanding of the market is minimal and the equipment QF has sent there over the last 10 years has been rubbish.Although things are changing it will take a long time for the market to revive.
BTW there are still 5 jumbos a day flying into HNL from Japan..full.The Japanese are discerning travellers.They know where the value for money is.
It ain't Australia
Any way this is just a bit of cabernet musing

Good post Angus.

From a 12 year old single malt reponse.

halas

I too dislike being ripped off in Australia, and I live here. I rarely buy anything of value here anymore, due to most things being available overseas for about 1/2 the price.

As an airline staff member, using our discounts it is cheaper to go to Thailand (Bangkok, Phuket or Koh Samui) staying in 4 star accom for 5 nights than what it is to go to any Nth Queensland destination.

Hong Kong is great for a 2 or 3 day trip to stock up on various goodies, the US once a year is also pretty good, even with a cr@ppy exchange rate.

Skiing overseas is about the same cost as here, some places even cheaper. The comparison between overseas skiing and here can not be compared, it is so much better value all up overseas. And the equipment is also so much cheaper also.

Sorry for the rant, but if you use staff travel wisely and plan for what you want, you can save money and have a good time away as well. If I live here and are p!ssed about how much we get ripped off, why would anyone want to visit here to be ripped off blind.

Have to agree with you there Rammel, I find Nth QLD overrated anyway, It never stops bloody well raining for a start, anything in the water consumes you, and if go into the bush those Cassowary birds size you up. At least on the Gold Coast you only have to run the gauntlet of bull sharks, or far more dangerous, the ones on the land, and if you stay away from Surfers you will go home still in one piece. (hopefully) The North coast of NSW leaves it for dead, beautiful deserted beaches, that are not brown from rain runoff, (just about every photo of Nth Qld must be touched up) the water is always brown, Sorry Maroons, but it ain't always paradise here.

Wrong Focus
 

Sorry to all the folks that live in CNS but there is a lot more in Australia to attract Japanese tourists than the Mossman Gorge.Once you have been to CNS you can tick the box.
Australia can learn a lot from Hawaii on how to attract Japanese tourists.Many Japanese travel to HNL on a regular basis.
If Australian Tourism can figure out why maybe they will have a shot

argusmoon....

There's a lot more to Cairns in particular and FNQ in particular than just the Mossman Gorge but I agree it's no Honolulu.To me though that's it's attraction but I'm not Japanese and that's who we're trying to get....

Perhaps we should find somewhere that has something in common with Honolulu.Something that the Japanese can understand and look at with pride....and relate to.....something like Pearl Harbour.....I know.............Darwin :ooh::ooh:

The again they also shelled Rose Bay in Sydney so maybe we could push that as well....:E

At the end of the day it's hard to beat Waikiki Beach even if there is no surf and the sand is imported.The image although built up with advertising and several movies is as I said hard to beat.

The reality is that Cairns is a small place and really a stop over on the way South but the Japanese with one weeks holiday a year don't have the time.