Jetstar going International
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Jetstar going International
Author: Scott Rochfort
Publication: Sydney Morning Herald (1,Wed 24 Aug 2005)
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* Budget flights head overseas * Fifth fuel surcharge on the way
Qantas has embarked on a long-term plan to split the national carrier in two in a bid to slash costs, and has announced plans to add a fifth fuel surcharge in a year to counter its rising fuel bill.
By next year Qantas's low-cost offshoot, Jetstar, plans to fly to Asia, and possibly Europe and North America.
The move comes just days after Qantas said Jetstar would some day be "just as important as the main line" airline.
It is thought Jetstar will fly to areas deemed barely profitable by Qantas and which are dominated by economy class passengers, such as Bali, Honolulu and even Rome, a route Qantas abandoned in 2003.
Qantas will instead stick to the main routes frequented by business class traffic, such as Sydney to London and Los Angeles.
Jetstar's ascendancy is seen as a key plank in Qantas's plans to cut $3 billion in costs by 2008. Jetstar's international expansion could replicate Qantas's moves domestically, where Jetstar has replaced Qantas's services to leisure destinations such as the Gold Coast and Hamilton Island.
Qantas's chief financial officer, Peter Gregg, said Jetstar was likely to fly to the smaller destinations in countries which Qantas already served.
Mr Gregg declined to say which long-haul aircraft Jetstar would use but said it could take 12 months to get regulatory approval. He did not rule out using Qantas's fleet of four A300-200s.
Qantas had to ditch its plans to fly the A330-200s into Asia two years ago. This was because the floor on the jets were too thin to install business class SkyBeds.
Mr Gregg denied gossip in aviation circles that Qantas had made a huge error in ordering the planes. He said Qantas had planned to use them without SkyBeds domestically, but had changed its mind after Ansett collapsed in September 2001.
He added: "There's no problem putting the SkyBed on." However, this would cost $20 million in strengthening the floors and "writing-off" the interiors.
There is speculation Qantas has been keen to offload the aircraft onto its low-cost operations given the huge cost of upgrading the planes.
Qantas "reluctantly" announced its fifth fuel surcharge since May last year. It also warned further job cuts would be needed to counter the rising cost of oil, which is now about $US65 a barrel.
Qantas said that from September 2 domestic one-way fuel surcharges would rise from $20 to $26, the international surcharge from $60 to $75 and the trans-Tasman surcharge from $40 to $46.
Despite the airline having 90 per cent of its fuel bill hedged around $US49 a barrel until December 31, it warned its fuel bill would rise by $1.25 billion this financial year. The airline has left Jetstar's one-way charge at $19, prompting speculation that its low-cost rival Virgin Blue may hold off raising its $19 levy.
Qantas is expected to waste no time slashing the further $1.5 billion in costs it announced last Thursday, on top of its current $1.5 billion three-year cost-cutting program.
After announcing plans to replace 96 customer service jobs with e-Ticket machines on Monday, Qantas's chief executive, Geoff Dixon, said: "As far as we're concerned were going to keep on making changes."
He denied speculation Qantas would wait for the Government to conclude its review of airline policy. The review could result in the lifting of the 49 per cent foreign ownership restriction on the airline. "I can assure you we have no plans to wait to cut jobs [until] after [we] talk to the Government," he said.
Headline: Qantas expands cut-price strategy
Author: Scott Rochfort
Edition: First
Section: News and Features
Publication: Sydney Morning Herald (1,Wed 24 Aug 2005)
--------------------------------------------------------------------------------
* Budget flights head overseas * Fifth fuel surcharge on the way
Qantas has embarked on a long-term plan to split the national carrier in two in a bid to slash costs, and has announced plans to add a fifth fuel surcharge in a year to counter its rising fuel bill.
By next year Qantas's low-cost offshoot, Jetstar, plans to fly to Asia, and possibly Europe and North America.
The move comes just days after Qantas said Jetstar would some day be "just as important as the main line" airline.
It is thought Jetstar will fly to areas deemed barely profitable by Qantas and which are dominated by economy class passengers, such as Bali, Honolulu and even Rome, a route Qantas abandoned in 2003.
Qantas will instead stick to the main routes frequented by business class traffic, such as Sydney to London and Los Angeles.
Jetstar's ascendancy is seen as a key plank in Qantas's plans to cut $3 billion in costs by 2008. Jetstar's international expansion could replicate Qantas's moves domestically, where Jetstar has replaced Qantas's services to leisure destinations such as the Gold Coast and Hamilton Island.
Qantas's chief financial officer, Peter Gregg, said Jetstar was likely to fly to the smaller destinations in countries which Qantas already served.
Mr Gregg declined to say which long-haul aircraft Jetstar would use but said it could take 12 months to get regulatory approval. He did not rule out using Qantas's fleet of four A300-200s.
Qantas had to ditch its plans to fly the A330-200s into Asia two years ago. This was because the floor on the jets were too thin to install business class SkyBeds.
Mr Gregg denied gossip in aviation circles that Qantas had made a huge error in ordering the planes. He said Qantas had planned to use them without SkyBeds domestically, but had changed its mind after Ansett collapsed in September 2001.
He added: "There's no problem putting the SkyBed on." However, this would cost $20 million in strengthening the floors and "writing-off" the interiors.
There is speculation Qantas has been keen to offload the aircraft onto its low-cost operations given the huge cost of upgrading the planes.
Qantas "reluctantly" announced its fifth fuel surcharge since May last year. It also warned further job cuts would be needed to counter the rising cost of oil, which is now about $US65 a barrel.
Qantas said that from September 2 domestic one-way fuel surcharges would rise from $20 to $26, the international surcharge from $60 to $75 and the trans-Tasman surcharge from $40 to $46.
Despite the airline having 90 per cent of its fuel bill hedged around $US49 a barrel until December 31, it warned its fuel bill would rise by $1.25 billion this financial year. The airline has left Jetstar's one-way charge at $19, prompting speculation that its low-cost rival Virgin Blue may hold off raising its $19 levy.
Qantas is expected to waste no time slashing the further $1.5 billion in costs it announced last Thursday, on top of its current $1.5 billion three-year cost-cutting program.
After announcing plans to replace 96 customer service jobs with e-Ticket machines on Monday, Qantas's chief executive, Geoff Dixon, said: "As far as we're concerned were going to keep on making changes."
He denied speculation Qantas would wait for the Government to conclude its review of airline policy. The review could result in the lifting of the 49 per cent foreign ownership restriction on the airline. "I can assure you we have no plans to wait to cut jobs [until] after [we] talk to the Government," he said.
Headline: Qantas expands cut-price strategy
Author: Scott Rochfort
Edition: First
Section: News and Features
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Inevitable I guess.
Like how they say that buying the A330-200 wasn't a mistake. A plane that was built to do long range flying and their using it to do City Flyers. Just another example of blatant incompetence by management. Just like that moron who sold the engines off the last 747-300 (EBU-painted one). He was given a performance bonus and now they need the plane in service because their desperately short of aircraft!
Like how they say that buying the A330-200 wasn't a mistake. A plane that was built to do long range flying and their using it to do City Flyers. Just another example of blatant incompetence by management. Just like that moron who sold the engines off the last 747-300 (EBU-painted one). He was given a performance bonus and now they need the plane in service because their desperately short of aircraft!
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Very interesting.
I guess this means the end of AO. Could Qf not get the operational effecincies from them like they have from JQ or is the some other reason why the internatioanl focus has been switched to JQ?
Just on JQ international flying, does anyone have details on thier trans-tasman routes? I heard they has been some sort of dely in approval to fly the route (that's the rumor around the water cooler anyway)? I thought it may have been an ETOPS thing?
I guess this means the end of AO. Could Qf not get the operational effecincies from them like they have from JQ or is the some other reason why the internatioanl focus has been switched to JQ?
Just on JQ international flying, does anyone have details on thier trans-tasman routes? I heard they has been some sort of dely in approval to fly the route (that's the rumor around the water cooler anyway)? I thought it may have been an ETOPS thing?
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ETOPs training off and running for all Cabin Crew - school after school going through. Pilots busily doing their thing. Haven't heard of any delays...but then again, quite busy myself to pay any attention. Hell, I can barely gobble down my panini in the time it takes me to do all my paperwork and play 'Bank Teller' before gear down!
Re: AO - could be a merger perhaps? AO operations with JQ management?? Notice how Peter Gregg didn't make ANY mention of Australian? Or do they have 'other' plans for AO?
Curious indeed!
Just think - Avalon one day, Honolulu the next! LOL!
Re: AO - could be a merger perhaps? AO operations with JQ management?? Notice how Peter Gregg didn't make ANY mention of Australian? Or do they have 'other' plans for AO?
Curious indeed!
Just think - Avalon one day, Honolulu the next! LOL!
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The End
Well I guess that signals the end of QF long haul except for perhaps the occasional London and Africa.
US will be done by overseas bases (AKL) and all the rest by GeoffFart.
And as we will have no leave left and the Howard reforms will mean a bugger all redundancy, the street will be our new home!
Congrats to GD, PG, JB, LG and MH - you successfully buggered us!
US will be done by overseas bases (AKL) and all the rest by GeoffFart.
And as we will have no leave left and the Howard reforms will mean a bugger all redundancy, the street will be our new home!
Congrats to GD, PG, JB, LG and MH - you successfully buggered us!
