Dixon confirms Jetstar International push
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Dixon confirms Jetstar International push
Does this mean the end for Australian Airlines??
http://news.ninemsn.com.au/article.aspx?id=60467
Qantas looks at taking Jetstar global
Saturday Oct 1 08:40 AEST
Australia's biggest airline Qantas is looking to expand its low-cost domestic carrier Jetstar into international markets.
Qantas and Jetstar are working on a proposal for a two-class international carrier based in Australia, servicing holiday routes where Qantas does not operate.
Qantas chief executive Geoff Dixon said there were major opportunities to expand the Jetstar brand internationally.
"Jetstar is developing a proposal for a two-class, value-based international carrier based in Australia," Mr Dixon told investors at the Merrill Lynch Australia investment conference.
The carrier would operate on point-to-point markets not served by the full service Qantas product.
"Initial analysis indicates that this airline could deliver significant cost advantages over the core Qantas operation and many of the competitors, and achieve quick profitability," Mr Dixon said.
"This regional strategy is all about growth in predominantly leisure-based markets in which Qantas has withdrawn over the last 10 years following privatisation and our need to get the company on a very sure financial footing."
Jetstar, wholly-owned by Qantas, was launched in Australia in May 2004.
Qantas is also focused on developing the Jetstar brand in Asia through its Jetstar Asia operation, with Mr Dixon saying the recent merger of Jetstar Asia and Singapore budget carrier Valuair had provided the combined group with significantly increased scale to pursue expansion opportunities in the region.
"We see significant potential to develop the Jetstar brand in Asia through Jetstar Asia," he said.
"... We're also evaluating a number of options to create a pan-Asian system of value-based airlines which would be able to take advantage of traffic rights available in different ports and provide greater connectivity for customers."
Qantas has a 49 per cent stake in Jetstar Asia, with the remainder held by Singaporean investors.
Qantas itself is expanding presence in growing point-to-point markets, commencing services to Shanghai and Mumbai and announcing new services to Beijing and San Francisco.
Closer to home, Mr Dixon said Qantas had not seen any decrease in demand following the latest increase in the fuel surcharge on ticket prices.
In August, Qantas lifted its fuel surcharge for the fifth time since May last year amid record high oil prices.
"We haven't seen any dampening of demand from either the surcharges we put on internationally or we put on domestically," Mr Dixon said.
The latest surcharge increase did not apply to Jetstar airfares, although its fares have still risen slightly.
"They have put up a small price increase and that still hasn't dampened it," Mr Dixon said.
Australia's largest airline has warned that record high fuel prices will impact its profits this financial year, saying it does not expect to achieve the same levels of profitability this financial year as in 2004/05, when it posted a record $763.6 million net profit.
İAAP 2005
http://news.ninemsn.com.au/article.aspx?id=60467
Qantas looks at taking Jetstar global
Saturday Oct 1 08:40 AEST
Australia's biggest airline Qantas is looking to expand its low-cost domestic carrier Jetstar into international markets.
Qantas and Jetstar are working on a proposal for a two-class international carrier based in Australia, servicing holiday routes where Qantas does not operate.
Qantas chief executive Geoff Dixon said there were major opportunities to expand the Jetstar brand internationally.
"Jetstar is developing a proposal for a two-class, value-based international carrier based in Australia," Mr Dixon told investors at the Merrill Lynch Australia investment conference.
The carrier would operate on point-to-point markets not served by the full service Qantas product.
"Initial analysis indicates that this airline could deliver significant cost advantages over the core Qantas operation and many of the competitors, and achieve quick profitability," Mr Dixon said.
"This regional strategy is all about growth in predominantly leisure-based markets in which Qantas has withdrawn over the last 10 years following privatisation and our need to get the company on a very sure financial footing."
Jetstar, wholly-owned by Qantas, was launched in Australia in May 2004.
Qantas is also focused on developing the Jetstar brand in Asia through its Jetstar Asia operation, with Mr Dixon saying the recent merger of Jetstar Asia and Singapore budget carrier Valuair had provided the combined group with significantly increased scale to pursue expansion opportunities in the region.
"We see significant potential to develop the Jetstar brand in Asia through Jetstar Asia," he said.
"... We're also evaluating a number of options to create a pan-Asian system of value-based airlines which would be able to take advantage of traffic rights available in different ports and provide greater connectivity for customers."
Qantas has a 49 per cent stake in Jetstar Asia, with the remainder held by Singaporean investors.
Qantas itself is expanding presence in growing point-to-point markets, commencing services to Shanghai and Mumbai and announcing new services to Beijing and San Francisco.
Closer to home, Mr Dixon said Qantas had not seen any decrease in demand following the latest increase in the fuel surcharge on ticket prices.
In August, Qantas lifted its fuel surcharge for the fifth time since May last year amid record high oil prices.
"We haven't seen any dampening of demand from either the surcharges we put on internationally or we put on domestically," Mr Dixon said.
The latest surcharge increase did not apply to Jetstar airfares, although its fares have still risen slightly.
"They have put up a small price increase and that still hasn't dampened it," Mr Dixon said.
Australia's largest airline has warned that record high fuel prices will impact its profits this financial year, saying it does not expect to achieve the same levels of profitability this financial year as in 2004/05, when it posted a record $763.6 million net profit.
İAAP 2005
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AO's Existence
The reason AO came into being was ostensibly to create a threat to the employees of the mainline carrier.
In this regard it has been highly successful.
It was cheap to set up and its continued existence has been largely through the way mianline apportions cost.
This was also the reason it lost $A11million in the last financial year.
But in so doing also assists in the bottom line of QF and J*.This may well be the only reason it continues into the future.
Having said that,it would be relatively simple to fold it into Jetstar Asia.
Jetstar Asia is also part of the jigsaw that will ultimately become a multi destination international carrier with J* domestic providing feeder services.
A low cost leisure market oriented,two class international carrier is on the horizon
In this regard it has been highly successful.
It was cheap to set up and its continued existence has been largely through the way mianline apportions cost.
This was also the reason it lost $A11million in the last financial year.
But in so doing also assists in the bottom line of QF and J*.This may well be the only reason it continues into the future.
Having said that,it would be relatively simple to fold it into Jetstar Asia.
Jetstar Asia is also part of the jigsaw that will ultimately become a multi destination international carrier with J* domestic providing feeder services.
A low cost leisure market oriented,two class international carrier is on the horizon
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Dixon's aggression and push for cost cutting and profits continue on.
Where this leaves AO poses an interesting question, given the multi-class proposal being made.
Where this leaves AO poses an interesting question, given the multi-class proposal being made.
