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Jetstar to sell five cent airfares

From todays Sydney Boring Herald

Quote:

Scott Rochfort
November 20, 2007 - 7:00PM

Jetstar is planning the cheapest ever airfare sale in Australian history in an attempt to draw public attention away from Tiger Airways upcoming launch of domestic services.

The Qantas low-cost offshoot plans to sell 5000 five cent fares (including taxes) on its website from 7pm tomorrow night on a handful of its routes.

Jetstar has claimed the sale is a celebration of it recently winning five awards, including the Sydney-based Centre for Asia Pacific Aviation's award for the best low-cost airline in the Asia-Pacific for 2007.

But it is more likely, Jetstar not only wants to frustrate Tiger's upcoming launch but also ensure its Singapore-headquartered rival does not undermine the Qantas offshoot's reputation as the lowest fare airline in Australia.

"It is just another example of why we are and will remain Australia's low fares airline," Jetstar chief Alan Joyce said in a statement issued by the airline.

However, the only flights on offer from Sydney are to the Gold Coast. From Melbourne - Tiger's homebase - the flights are only on three routes served by Tiger.

The tickets are also for travel in the low winter season, more than six months away and on selected flights on the low-peak Tuesday, Wednesday and Saturday daytimes. The five cent tickets also entail a $2 credit card fee for people booking over the internet..

The 5000 tickets on offer are a small percentage of the average 700,000 seats Jetstar would expect to sell every month.

News of the sale comes as Tiger attempts to gain final regulatory approval to launch flights by Friday. With a plane load of passengers, crew and Civil Aviation Safety Authority inspectors, Tiger made a "proving" flight from Melbourne to the Sunshine Coast today. Tonight Tiger will undertake a final "proving" flight from Melbourne to Launceston. If the flights go off without a hitch, Tiger could expect to have its Air Operators Certificate by Thursday. If not, it will be forced to reschedule another "proving" flight and refund thousands of tickets for its first scheduled flights.

If this stunt is "an attempt to draw public attention away from Tiger Airways upcoming launch of domestic services', surely Jetstar are achieving the opposite result. While the 5 cent fare will draw headlines and plenty of Nosey Parkers, the same people will surely be also aware of Tiger - not something they'd know about were it not for Jetstar fares.

JQ may think they are smart and clever but are they just stoopid?

Well at least there is ONE true low cost airline in business in Oz judging by this report if true. And where's Tiger? Up and running yet or still no AOC? I guess you need a Chief Pilot for that - still no sign of one of them either?? And a Flight Dept and working conditions that can attract professionals would be out of the question....

Trusty,

they have one and he is a ripper.

Quote:

I guess you need a Chief Pilot for that - still no sign of one of them either??

What a ridiculous first post. Do you really think CASA would have them doing proving flights without a CP or first revenue flights in the next week?

Since you are a probationer perhaps you should have your posting rights suspended for a while for making a stupid comment.:ok:

give him a break

ease up Icarus. Your wings will melt if you display any more of that attitude!

5 cents- Tax Inclusive??

Quote:

The Qantas low-cost offshoot plans to sell 5000 five cent fares (including taxes) on its website from 7pm tomorrow night on a handful of its routes.

Could someone explain how 5 cents Tax inclusive- exceeds the "cost of providing the service" vis the Trade Practices Act/ACCC???

Quote:

Could someone explain how 5 cents Tax inclusive- exceeds the "cost of providing the service" vis the Trade Practices Act/ACCC???

This thought has no doubt crossed the minds of many but I believe that someone needs to complain to the ACCC before it acts. Like most, if not all, Government authorities, the ACCC has a track record of 'reactivity', as opposed to 'pro-activity'.

I am surprised that the media isn't all over this aspect of the story. Maybe Tiger needs someone like Branson and another well known whinger and complainant on their team.
.

Exactly- I can understand AJ and the amateurs letting it rip- but given history I thought “The Big Q” may have tasked some sort of watching brief over such a fundamental issue- given at the end of the day they are representing QF’s shareholders in the market??

Quote:

Maybe Tiger needs someone like Branson and another well known whinger and complainant on their team.

Don't know about the bleat factor that we have seen- it shows lack of depth or self fixation, in my view. There are more productive ways I would have thought for such a professional aviation culture....

According to the Tiger Airways Chief Pilot (KB)...

"CASA has described the Tiger proving flight as the best they have ever seen"

Very well done to all concerned.:ok:

Who Pays for the 5c fares ?

Who pays for this marketing stunt ? Well of course Mainline Qantas pays. All part of the J* creative accounting, smoke and mirrors finance style survival initiative. Oh and let's not forget the Management Bonus scheme which kicks in with this Tiger crushing initiative.

Bah! Humbug! , must be getting close to Christmas..........

Has anyone had any luck getting through to access the 5 cent fares ?
No luck myself !

Nope wont even load the website

Unfortunately, we're experiencing some technical difficulties, and Jetstar.com is temporarily unavailable.

Our technicians are working on the problem, and we hope to have the site up again as soon as possible.

We apologise for any inconvenience.

The server is temporarily unable to service your request. Please try again later.
Reference #6.a44809d2.1195636448.2113d8e0

Im getting the same message to !
I wonder if anyone is actully getting through at all lol

I just got through, PER - MEL were showing as $149 dollars. Where abouts these 5c airfares, are they on all routes?

Brisbane - Rockhampton/Newcastle/Mackay

Melbourne - Hobart/Launceston/Newcastle

Sydney - Goldcoast

Of course they needn't build yield, product and look after staff so the staff look after customers.Nah just keep reducing margins. Now where is the contribution margin to group profit???..That would imply business acumen, something lacking in the "group"

Of course us humble employees must realise it is US that are the problem, our pesky unions, our contracts and our work practices. J* a lean model losing $ hand over fist.

How anyone can believe this is sustainable is beyond me!

It's sustainable because Mainline Qantas keeps the funds flowing.

Quote:

How anyone can believe this is sustainable is beyond me!

Where do you get the "sustainable" idea from? Nobody has said anything about these fares being sustained.

"Cost of providing the service"

How the ACCC can swallow the "...we're not losing money on these fares..." line is beyond me. If any other operator tried it there would be an uproar from the Jetstar parent.

What really worries me is that Joe Public really believes that this represents the cost of providing the service (did I say service; sorry, meant to say product). JP now really believes that aviation staff are overpaid, and will be expecting 5 cent fares every time he wants to travel.