Jetstar Analysis

Topics: Qantas, Singapore Changi Airport, Jetstar Asia Airways Pages: 7 (1810 words) Published: October 7, 2010
Assessment 1
Lam Minh Tho

Prepared for: Phillip Dowling
Jetstar’s History
It is a low-cost airline headquartered in Singapore. It is the Asian offshoot of Qantas’s Jetstar Airways. It operates services to regional destinations. Its main base is Singapore Changi Airport. On April 16, 2008, the company announced that it had achieved profitability for the year ended March 31, 2008, with an increase of 20 per cent in the number of passengers carried and a passenger load factor of over 75 percent, an increase of 4 percent over the previous year.

JSA| Call sign
Founded| 2004|
Hubs| Singapore Changi Airport|
Frequent flyer program| Qantas Frequent Flyer|
Member lounge| Qantas Club|
Fleet size| 7|
Destinations| 11|
Parent company| Newstar|
Headquarters| Singapore|
Key people| Ms Chong Phit Lian (CEO), Mr Choo Teck Wong, Denis (Chairman)| Website||
In 2006, Jetstar became the first Australian airline to enable customers to select their seats upon booking. In the same year, Jetstar and Jetstar Asia were brought together under the Jetstar brand. In 2007, Jetstar won the Skytrax World Airline Award™ as the best low cost airline – in the world. The survey, conducted between August 2006 and June 2007, attracted 14 million respondents, with more than a third (five million) voting in the Low Cost Carrier category alone. In January 2008, Jetstar carried 680,000 domestic passengers, up 12.8 per cent on January 2007, and 149,000 international passengers, up 65.7 per cent in the previous corresponding month. Jetstar’s domestic and international network is supported by an existing narrow-body fleet of 26 A320s and the future introduction of an initial three Airbus A321s. The airline currently operates six Airbus A330-200s serving eight international long-haul markets to Asia and the Asia Pacific. Jetstar has made no secret of its intentions to become the world’s first global low cost airline, and has its sights set on Europe and the Americas.

Market size
The airline will bring in five additional domestic aircraft in the first half, one of them an operational spare, as it significantly boosts services between Melbourne and Sydney and popular east coast leisure destinations. The move will increase Jetstar's market share to about 18 per cent, ensuring Qantas Group meets its self-imposed rule that it retain at least 65 per cent of the domestic market. It expects passenger numbers to increase by 7 per cent from the 2009 financial year total of 8.1 million The Jetstar Group includes wholly owned Qantas subsidiaries operating from Australia and New Zealand, Express Ground Handling and partner carriers including Jetstar Asia and Valuair in Singapore and Jetstar Pacific in Vietnam.

Jetstar Asia / Valuair are 51 per cent held by Westbrook Investments Pte Ltd (Westbrook) and 49 per cent by Qantas. Jetstar Pacific in Vietnam is 27 per cent held by Qantas with other shareholders including its largest shareholder, State Capital Investment Corporation, Saigon Tourist Holding Company and Mr Luong Hoai Nam, CEO of Jetstar Pacific.

Collectively the Jetstar Group of airlines operate over 1900 weekly flights to 15 countries, serving in excess of 50 markets across the Asia and Asia Pacific region.

Jetstar Group airlines employ directly 7,000 staff across the Asia Pacific region.

Passenger routes

Qantas's no-frills offshoot, Jetstar, has settled on Singapore as its hub for flights in Asia and as its launch pad for services to Europe. Jetstar has been considering for three years whether to make Singapore, Bangkok or Ho Chi Minh City in Vietnam its Asian hub.

Number of Planes
* Jetstar in Australia

* Jetstar Australia's existing fleet comprises 44 aircraft at 30 June 2009. This includes 33 Airbus A320s 177 seats configured, 5 Airbus A321s up to 214 seats and 6 Airbus A330-200s 303 seats in...
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