JETSTAR starts SIN-BKI and SIN-KCH

[Isaac 0]

I'm not sure if you're aware of the JQ-3K conflict, but these 2 airlines no longer see eye to eye, which is why all SIN-Australia flights have been taken back and operated by JQ instead of 3K and JQ has also taken back its 2 wet-leased A320 for the routes. Qantas has abandoned its plan for 3K to be its Asian feeder and is putting its money on BL (hence its re-branding, expanding intl' to Siem Reap, BKK, SIN and leasing A320s from JQ). Qantas' CEO announced that the creation of 3K was "a mistake".

 

3K's situation is quite sad really; it has a really good financial report card and access to routes not accessible to Tiger, but its parent has no intention of building it up or selling it off to another company who would. Qantas just wants to cling on to it, so no one else can.

And Temasek is not saying anything at all ?

 

[Victor Ralk 0]

And Temasek is not saying anything at all ?

I think Temasek is more worried about Tiger currently. That is their Australian operations. Anyone have the figures of how much TT has lost?

 

Although i have recently noticed Tiger Australia advertising every week now in the Herald Sun and on the radio now. They finally discovered how to really capture the potential traveller!

Edited October 23, 2008 by Lukas Mahoney

[reyneo 0]

And Temasek is not saying anything at all ?

They did. In fact that sort of 'added' to the conflict. Temasek feels that as a Singaporean Airline, Jetstar Asia should be controlled by someone in Singapore, who is aware of the situation here and that the airline shouldn't be dictated by someone all the way in Australia. Temasek felt that 3K should be given more autonomy in its operations. This resulted in a new CEO appointed by Temasek, but as far as its concern, Qantas, the largest shareholder at 42.5% is still running the show and Temasek is still merely an investment unit collecting its returns. Since Qantas is no longer going to spend even one cent on 3K, if 3K wants to expand/accuire new planes, Temasek will have to convince all the other remaining shareholders to pump money in to purchase planes (which even if they ordered now, would arrive is what? 2016?) or lease from somewhere(but seriously, its currently next to impossible to lease 320s long term at a reasonable price).

 

FYI: 3K is the least LCC-like of the Asian LCCs, and according to a press release, has corporate contracts for slightly under 100 companies!

Edited October 23, 2008 by reyneo

[BC Tam 2]

..... or lease from somewhere(but seriously, its currently next to impossible to lease 320s long term at a reasonable price).

Imo, good possibility this situation will do a complete reverse in the not too distant future

[Waiping 12]

How about Valuair. That airliner is dead is it?

[BC Tam 2]

How about Valuair. That airliner is dead is it?

Kena wallaped by JetStar Asia oledi

[Azri M. 0]

Kena wallaped by JetStar Asia oledi

In a way... Jetstar Asia routes from Singapore to Indonesia cities are operated by Valuair, which is a separate management under Jetstar Asia. It operates on its own and DO PROVIDE FREE FOOD on board.

[Waiping 12]

In a way... Jetstar Asia routes from Singapore to Indonesia cities are operated by Valuair, which is a separate management under Jetstar Asia. It operates on its own and DO PROVIDE FREE FOOD on board.

 

Haha... I saw their plane at Changi T1 and on the giant schedule board it said Valuair to XXX destination canceled - ask airline.

[reyneo 0]

Nope, VF is part of 3K, it is not a separate entity. The 2 VF planes and 7 3K ones are rotated throughout the 3K and VF network and you may get a VF jet on a 3K route and vice versa. (Eg. I've flown HKT-SIN on VF metal despite it being a non-Indonesian flight) They could repaint and refurbish their VF planes into 3K colors, but it seems pointless and it appears that the VF brand has caught on a bit in Indo. Any how, even if they did choose to re-brand, VF must still exist with VF flight codes for SIN-Indo flights due to regulatory issues.

 

Jetstar Asia sees opportunities in slowdown

It has received good response to its corporate packages for regional flights

 

By VEN SREENIVASAN

 

(SINGAPORE) The global financial crisis and the resultant economic slowdown provides opportunities for value-based carriers.

 

At least, that is what the folks at Jetstar Asia are counting on.

 

The discount carrier's chief executive, Chong Phit Lian, said that her airline has been successfully courting cost-conscious companies with corporate travel packages for regional short hauls. 'We have started signing up corporate accounts directly, and the response has been very good,' she said. 'Besides much lower ticket prices, we are also suited for corporates as we fly to virtually all the capital cities around the region, with the exception of Vietnam, where our destination is the commercial capital Ho Chi Minh.'

 

Also, unlike the no-frills carriers, Jetstar and its sister carrier Valuair provide simple snacks and drinks on board, allocated seats and flexibility on itinerary changes.

 

'We are already seeing quite good corporate traffic on our Jakarta, Hong Kong and Kuala Lumpur services,' she said.

 

Indeed, many corporations, especially in the battered financial sector, have been slashing corporate travel budgets and telling their senior staff to travel coach class on short-haul flights.

 

Jetstar, which is controlled primarily by Qantas and Temasek Holdings, flies to 14 regional destinations, which include Taipei, Bangkok, Manila. From Dec 1, it will ramp up its Singapore-Kuala Lumpur service to 19 flights a week, from seven flights now. And on Dec 2, it will start inaugural flights to Kota Kinabalu, followed by flights to Kuching next March.

 

Ms Chong said that passenger traffic on Jetstar and Valuair had increased year-on-year in response to additional capacity by way of a seventh A320, but was still below target.

 

System-wide load was in the low 70 per cent level, compared with the mid-70 per cent last year.

 

The airline is looking to add two more planes within the next 12 months as utilisation rates pick up in tandem with new routes and more services on existing routes.

 

Ms Chong said that the impending recession could be a boon for airlines such as Jetstar as leisure travellers opt for short-haul regional holidays and business travellers downgrade to cheaper flights.

 

She did not give any indication of whether OrangeStar Investment Holdings, under which Jetstar and Valuair are held by Qantas and Temasek, had turned in profits yet. But she said that operating cashflow was positive, and there was no need for new fund raising.

 

OrangeStar was recapitalised some three years ago after burning the initial cash of some $100 million within a year of operation.

 

But in a surprising move, Qantas has written down its investment in OrangeStar in its latest financial statement.

 

'Since December 2006, the investment in OrangeStar Investment Holdings ceased to be equity-accounted as losses reduced the value of the investment to below zero,' Qantas said in its preliminary financial report for the year ended June 30. The report, without naming OrangeStar, also hinted that its Singapore investment posted a loss of A$100,000 as at June 30.

 

Recently, Jetstar also severed an 'operational merger' with its Australian sister group, Jetstar Australia, just over a year after the arrangement was put in place.

 

Nevertheless, Jetstar Asia seems confident that the current economic slowdown and regional air liberalisation would stand it in good stead.

 

Jetstar Asia yesterday received its four millionth passenger, Ms Calin Tan, who flew in from Bangkok with her businessman husband, Andrew Goh.

Looks like I was wrong! They 'intend to get' 2 new jets! Since the A320 was not specified, I'm REALLY hoping they would look at longer ranged aircraft, like maybe the A330 (but theres a shortage of it now), 767, or even A319! I believe they can do really well if they fly to slightly further destinations (look at TPE!) like Japan/Korea, Shanghai(320-able)/Beijing (but China is closed to them for now), or even Australia if they flew direct (NOT via darwin at 4am!) to MEL/SYD!

Edited October 23, 2008 by reyneo

[Victor Ralk 0]

Not to far on a A320 thanks! Unless they add some legroom there. Virgin Blue are flying from BNE-DPS, and ADL-DPS on their 737-800's soon, now thats a long cramped flight...

[Pieter C. 5]

Thanks, Lukas and reyneo: never knew a 'fuid' existed between Jetstar-Singapore and Jetstar-Australia

 

This throws a complete new look on the airline, at least, to me

[Robert 0]

This has been around for a few months http://www.malaysianwings.com/forum/index....ic=9336&hl=

 

In addition I dont know how they can say that the 3K KUL-SIN route is doing ok - whenever I travel on it the loads are very bad.

[Pieter C. 5]

This has been around for a few months http://www.malaysianwings.com/forum/index....ic=9336&hl=

 

Sorry, Robert, have missed your topic completely, while I was in SGN at the time

[Andi C 0]

TIGER to start daily SIN-BKI-SIN from Mar09

 

Hmmm... we'll have 5 airlines operating this route (MH, MI, AK, 3K, TR)... err.. make it 6 if you count BI