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Jetstar

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"Jetstar" redirects here. For other uses, see Jetstar (disambiguation).

Jetstar
IATA ICAO Call sign
JQ JST JETSTAR
Founded2003
HubsMelbourne Airport
Secondary hubs
Focus cities
Frequent-flyer programQantas Frequent Flyer
Fleet size70
Destinations38
Parent companyQantas
HeadquartersCollingwood, Melbourne, Victoria, Australia
Key peopleJayne Hrdlicka (Group CEO)[1]
RevenueIncrease A$3.067 billion
(2011/2012)[2] Note 3
Operating incomeDecrease A$116 million
(2012/2013)[2] Note 3
Websitewww.jetstar.com

Jetstar Airways Pty Ltd, trading as Jetstar, is an Australian low-cost airline (self-described as "value based")[4] headquartered in Melbourne, Australia.[5][6] It is a wholly owned subsidiary of Qantas, created in response to the threat posed by low-cost airline Virgin Blue. Jetstar is part of Qantas' two brand strategy[7] of having Qantas Airways for the premium full-service market and Jetstar for the low-cost market. Jetstar carries 8.5% of all passengers travelling in and out of Australia.[8]

The airline operates an extensive domestic network as well as regional and international services from its main base at Melbourne Airport,[9] using a mixed fleet of the Airbus A320 family and the Boeing 787 Dreamliner. Like its Qantas parent, Jetstar competes with Virgin Australia and its fully owned low-cost subsidiary Tigerair Australia.[10]

Qantas through the Jetstar Group has stakes in sister airlines Jetstar Asia Airways, Jetstar Pacific Airlines and Jetstar Japan.

History

The airline was established by Qantas in 2003 as a low-cost domestic subsidiary. Qantas had previously acquired Impulse Airlines on 20 November 2001 and operated it under the QantasLink brand, but following the decision to launch a low-cost carrier, re-launched the airline under the Jetstar brand.[9] Domestic passenger services began on 25 May 2004, soon after the sale of tickets for her inaugural flight in February 2004. International services to Christchurch, New Zealand, commenced on 1 December 2005. Although owned by Qantas, its management operates largely independent of Qantas through the company formerly known as Impulse Airlines.

Originally the airline was headquartered on the grounds of Avalon Airport near Melbourne, and started flying out of Avalon Airport in mid-2004,[11][12][13] but has since relocated its registered office to the Melbourne CBD.[14]

Despite its low-cost ethos, Jetstar currently offers a limited number of connecting services without through baggage checking – though this has changed since international flights commenced in November 2006. Baggage connectivity was added as a service offering for domestic flights connecting with international flights.

Reserved seating is currently provided on all routes and on 4 October 2006, Jetstar became the first Australian airline to allow customers to select their seat upon booking.[15]

The first flight of sister airline Jetstar Asia Airways took off from its Singapore hub to Hong Kong on 13 December 2004. This marked Qantas' entry into the Asian low-cost market and signified its intention to battle key competitor Singapore Airlines on its home ground. Qantas has a 42.5% stake in Jetstar Asia's ownership.

Jetstar Airbus A330-200 about to land at Sydney

On 1 December 2005, Jetstar commenced operations from Sydney, Melbourne, Brisbane and the Gold Coast to Christchurch in New Zealand. On 7 December 2005, it was announced that Jetstar would establish the world's first global low-cost airline. At the end of 2005, it was announced that Jetstar would fly to Perth, from Avalon Airport.

In July 2006, Jetstar and Jetstar Asia were brought together under the Jetstar brand.[16] Online bookings for both carriers were integrated into Jetstar.com.

In July 2007, Qantas acquired an 18% stake in Vietnam's Pacific Airlines, to increase to 30% by 2010. The airline was relaunched on 23 May 2008 as Jetstar Pacific.

On 1 August 2008, Jetstar announced that it had signed an agreement with the Northern Territory Government to make Darwin International Airport an international hub with plans for seven aircraft to be based in Darwin. Under the agreement Jetstar would be required to base three aircraft at Darwin by June 2009, with a further four by June 2012, with the Northern Territory Government to provide $5 million to set up the hub and a further $3 million for promotion of the new routes.[17] In December 2013, Jetstar announced that it would be closing the Darwin base in May 2014 and re-positioning the based aircraft to Adelaide. Flights to Tokyo via Manila were to be discontinued while services to Singapore would be operated by Jetstar Asia with Singapore-based aircraft.[18] The base closure was attributed to cost-cutting measures by parent company Qantas as well as increased competition from the re-introduction of flights by Asian carriers into Darwin airport.

On 28 April 2009, Jetstar commenced daily direct services from Auckland to the Gold Coast and Sydney. On 10 June 2009, Jetstar commenced domestic New Zealand flights between Auckland, Wellington, Christchurch and Queenstown using Airbus A320 aircraft; services to Dunedin commenced later. Jetstar replaced Qantas subsidiary Jetconnect on these routes.

From 1 February 2011, Jetstar started its co-operation with the oneworld alliance, allowing people booking an itinerary with a full oneworld member to include a Jetstar flight in the itinerary. However, the flight must be sold via Jetstar's corporate parent Qantas, under a QF flight number.[19]

In August 2011, Jetstar's parent Qantas announced that it would set up a new airline to be called Jetstar Japan, a joint venture of Jetstar, Japan Airlines, and Mitsubishi. The airline was expected to start operating in December 2012,[20] but then launched ahead of schedule on 3 July 2012.[21]

In March 2012, another Asian Jetstar branded airline was announced, Jetstar Hong Kong, a strategic partnership between Qantas and China Eastern Airlines, which was expected to commence operations in 2013.[22] Although it took delivery of aircraft, Jetstar Hong Hong never commenced operations.

Jetstar headquarters in the Melbourne suburb of Collingwood

In November 2013, Jetstar moved its head office from Melbourne's CBD to the suburb of Collingwood. In February 2014, Jetstar signed a codeshare agreement with Emirates Airlines as a continuation of the agreement between Emirates and Qantas, Jetstar's parent airline.

In mid-2014, the Australian Competition and Consumer Commission (ACCC) took legal action against Jetstar and competitor Virgin Australia in respect of drip pricing.[23][24] In November 2015 the Federal Court of Australia found that the ACCC's claims that the two airlines engaged in misleading and deceptive conduct by carrying out drip pricing were proven.[25]

In June 2015, Jetstar announced that it would commence regional services in New Zealand, beginning in December 2015. The new services would be flown by five turboprop Bombardier Dash 8s operated by Eastern Australia Airlines—one of Qantas' subsidiary regional airlines—under the Jetstar brand. At least four new destinations would be served initially, with Hamilton, Rotorua, New Plymouth, Napier, Palmerston North, Nelson and Invercargill named as the cities under consideration.[26] On 31 August 2015, Jetstar announced it had selected the first four regional centres it would serve at the commencement of operations on 1 December. Those selected were Napier, Nelson, New Plymouth and Palmerston North. All four cities will have services to Auckland; Nelson will also have services to Wellington.[27]

Destinations

Airbus A321-200 ready to take off from Runway 27 at Melbourne Airport
Jetstar Airbus A320-232 VH-VQH with special decals to advertise the Kangaroos Australian Rugby League team and its participation in the 2008 World Cup
A Boeing 717 formerly operated by Jetstar
Gold Coast Titans liveried Jetstar Airbus A320
Jetstar's first Boeing 787 Dreamliner preparing for take off at Gold Coast Airport, Queensland
Main article: Jetstar destinations

Fleet

As of 22 October 2015, the Jetstar Airways fleet consists of the following aircraft:[28]

Jetstar Airways fleet
Aircraft Current Orders Passengers Notes
J Y Total
Airbus A320-200 53 Note 1 Note 3 0 180 180
Airbus A321-200 6 2 Note 1 Note 2 2 220 220
Boeing 787-8 11 — 21 314 335 [29]
Total 70 2

^Note 1 Qantas placed an order for 110 A320s in 2011, with 11 allocated to a planned new Qantas Group premium airline in Asia (never actually established) and 99 to the various Jetstar-branded airlines — including Jetstar Hong Kong, which received aircraft but never commenced operations.[30][31] The order consisted of 32 classic A320s and 78 A320neos, with scope to convert some to A321s.

^Note 2 There has been a subtle order of 2 A321's equipped most likely with sharklets, coming straight from the factory at Airbus. EIS estimated December.

^Note 3 Refitting all A320's to 186 seat configuration.

Previously operated

Marketing and sponsorship

From 2004 to 2006, the airline's mascot, Julie The Jetstar Girl, was played by actress Magda Szubanski.

The advertising slogan of Jetstar is "All day every day low fares". In 2006, the jingle "Let's Fly Jetstar tonight" and the use of Szubanski ceased and was replaced with "It's All About Choice / Fly Away" (later "Low Fares, Good Time").

Jetstar Airways is the major sponsor of the National Rugby League team, the Gold Coast Titans.[32] In July 2008 Jetstar Airways was named the Official Airline of the Australian national rugby league team. One of its A320s was decorated with special decals to advertise the relationship.[33]

In-flight service

On all domestic routes Jetstar has a buy on board single class service offering food and drinks for purchase.[34]

On all B787 international routes, Jetstar offers a two-class service.

Business Class

Jetstar offers Business Class on its B787-8 aircraft. The Business Class cabin is fitted with 21 leather premium class seats in a 2-3-2 configuration, similar to Qantas domestic Business Class or Qantas international premium economy class. The service is inclusive of all meals and beverages, in-flight entertainment, and includes an increased baggage allowance of 30 kg. Business Max fares also include Qantas Club lounge access where available, and earn Qantas Frequent Flyer points.[35]

Economy Class

Jetstar offers either pre-purchased meals on wheels or buy on board service with food and beverages.

In-flight entertainment

Seat-back videos in the economy class section of Jetstar's Boeing 787.

In November 2011 Jetstar became the first airline to offer passengers iPads for use as in-flight entertainment devices. The units, which are pre-loaded with movies, games and magazines, are provided on flights over two hours duration and are available for a fee in Economy Class but are complimentary in the international Business Class cabin, although some aircraft have seat back entertainment screens.[36] The options available are changed on a bi-monthly basis depending on customer feedback forms which are collected by head office through a random selection process.[37]

Jetstar's 787 Dreamliner Aircraft are fitted with 10-inch seat-back on-demand entertainment screens in business class and 9-inch screens in economy class.

Television series

Main article: Going Places (Australian TV series)

The Nine Network began airing the series Going Places from October 2007. The eight-part series depicted the everyday lives of selected members of Jetstar's Melbourne airport staff. The show followed the dramas of the check-in staff mid-flight, and new international recruits.

Jetstar Group

In addition to owning 100% of Jetstar Airways in Australia (also operating in New Zealand), the Qantas Group owns varying stakes in other Jetstar-branded airlines in the Asia-Pacific region. These airlines represent a strategy to provide better growth for the Qantas Group by accessing the intra-Asia market:[38] exploiting both its faster growth and/or its under-penetration by low-cost airlines.

Qantas partners with local investors as both a means to overcome foreign ownership or traffic rights restrictions[39] and to keep the ventures "capital light", i.e. reduce the capital investment required by Qantas and keep assets such as aircraft off the Qantas balance sheet.[40][41]

The Jetstar Group consists of the following airlines:

Country Airline IATA ICAO Callsign Date joined group Fleet size Qantas ownership Other airline owners
Australia Jetstar Airways JQ JST Jetstar 2003[42] 73[28] 100%
New Zealand
Singapore Jetstar Asia Airways 3K JSA Jetstar Asia 2004[43] 18[44] 49%[45]
Valuair VF VLU Valuair 2005[46] 0 Note 2
Vietnam Jetstar Pacific Airlines BL PIC Pacific 2007[47] 10 [48] 30%[49] Vietnam Airlines (70%)
Japan Jetstar Japan GK JJP Orange Liner 2011[50] 20[48] 33.3%[51] Japan Airlines (33.3%)

The Jetstar Group is headed by CEO Jayne Hrdlicka.[52]

^Note 2 The final two aircraft (9V-VLA and 9V-VLB) were transferred from the Valuair AOC to the Jetstar Asia Airways AOC (as 9V-VLE and 9V-VLF) during April 2010.[53][54] Although Jetstar Asia Airways generally maintains two aircraft in a hybrid Jetstar/Valuair livery,[55][56] they sit on the Jetstar Asia Airways AOC.

^Note 3 The Jetstar financial results include Jetstar Airways, Jetstar Asia Airways and Valuair as consolidated entities in the Qantas Group accounts.[2] Despite Qantas owning only a minority stake in Jetstar Asia Airways and Valuair (51% owned and effectively controlled by Singaporean nationals as required under Singapore aviation regulations), Australian accounting standards have required them to be treated as consolidated entities since 8 April 2009.[57] Jetstar Pacific Airlines and Jetstar Japan are treated as investments in associates and not consolidated in the Qantas Group accounts.

References

  1. ^ http://www.jetstar.com/mediacentre/facts-and-stats/executive-bios
  2. ^ a b c "Broadening Our Horizons: Qantas Annual Report 2012" (PDF). Qantas Group. Retrieved 29 July 2013.
  3. ^ "Lounges". Jetstar. Retrieved 29 July 2013.
  4. ^ "Our Company". Jetstar. Retrieved 23 July 2013.
  5. ^ "Corporate addresses". Jetstar Airways. Retrieved 12 August 2009.
  6. ^ "Terms of use." Jetstar. Retrieved on 25 December 2010. "Licensed Address: 473 Bourke St, Melbourne Vic 3000"
  7. ^ "Qantas: The Australian flag carrier undergoes a metamorphosis as it attains 90 years of operations". Airline Leader. Retrieved 23 July 2013.
  8. ^ "Qantas International's market share slips as capacity growth slows". The Australian. Retrieved 17 June 2015.
  9. ^ a b "Directory: World Airlines". Flight International. 3 April 2007. p. 98.
  10. ^ "Tiger air becomes part of Virgin". News Life Media. 8 July 2013. Retrieved 29 July 2013.
  11. ^ "Airline Jetstar to be based in Avalon." The Sydney Morning Herald. 25 February 2004. Retrieved on 9 April 2010.
  12. ^ "Corporate addresses." Jetstar Airways. Retrieved on 12 August 2009.
  13. ^ "Jetstar to fly from Avalon: report." The Age. 24 February 2004. Retrieved on 9 April 2010.
  14. ^ "Family Competitions | Jetstar". jetstar.com. 2011. Retrieved 7 November 2011. The promoter is Jetstar Airways Pty Limited (ABN 33 069 720 243) of Level 4, 222 Bourke Street, Melbourne, VIC 3000
  15. ^ "Jetstar to move to allocated seating" (PDF) (Press release). Jetstar Airways. 19 June 2006.[dead link‍]
  16. ^ "Jetstar move to single brand and distribution approach to support growth in Asia" (PDF) (Press release). Jetstar Airways. 26 July 2006.[dead link‍]
  17. ^ "Jetstar wings in for Darwin hub". Northern Territory News. 2 August 2008.
  18. ^ "Jetstar shuts Darwin base as competition grows". Travel Weekly. Retrieved 27 July 2015.
  19. ^ "Jetstar joins Oneworld alliance". 28 January 2011. Retrieved 27 January 2011.
  20. ^ Jetstar-JAL LCC, "Jetstar Japan" to commence service by Dec-2012 Accessed on 18 August 2011
  21. ^ "Jetstar Japan brings forward launch date to Jul-2012, names initial five domestic destinations". Retrieved 27 July 2015.
  22. ^ "China Eastern Airlines and Qantas announce Jetstar Hong Kong". Retrieved 27 July 2015.
  23. ^ Han, Esther (19 June 2014). "Jetstar and Virgin taken to court for drip-pricing tactics". Sydney Morning Herald. Retrieved 21 August 2015.
  24. ^ "ACCC takes action against Jetstar and Virgin for drip pricing practices". Australian Competition and Consumer Commission. Australian Competition and Consumer Commission. 19 June 2014. Retrieved 21 August 2015.
  25. ^ "'Drip pricing' by Jetstar and Virgin Australia misled customers, court finds". The Sydney Morning Herald. Fairfax Media. 17 November 2015. Retrieved 27 November 2015.
  26. ^ Bradley, Grant (18 June 2015). "Regional shake-up: Jetstar to break Air New Zealand's domestic stranglehold". The New Zealand Herald. NZME. Retrieved 19 June 2015.
  27. ^ http://www.stuff.co.nz/travel/news/71582558/jetstar-to-fly-nelson-napier-new-plymouth-and-palmerston-north
  28. ^ a b Australian civil aircraft register search, using "Jetstar Airways" as the search parameter. Search conducted 22 October 2015
  29. ^ http://australianaviation.com.au/2013/06/first-jetstar-787-in-final-assembly/"First Jetstar 787 in final assembly". Australian Aviation. 5 June 2013.
  30. ^ "Qantas and Airbus sign huge A320 order". Australian Aviation. Retrieved 29 July 2013.
  31. ^ Freed, Jamie (22 March 2015). "Qantas's Jetstar Hong Kong venture down to one plane". The Sydney Morning Herald. Retrieved 13 August 2015.
  32. ^ "It's the Jetstar Gold Coast Titans" – Gold Coast Titans Media Release retrieved 22 January 2009.
  33. ^ "Australian Kangaroos coach and captain launch Jetstar partnership, ‘Go Roos’ aircraft and PlayJetstarRugbyLeague.com" – Jetstar Media Release retrieved 22 January 2009.
  34. ^ "JetShop.Cafe." Jetstar Airways. Accessed 8 November 2011.
  35. ^ "Business Class". Jetstar. Retrieved 27 July 2015.
  36. ^ "Technology". Retrieved 27 July 2015.
  37. ^ "Jetstar group". Retrieved 27 July 2015.
  38. ^ "Jetstar Japan is Qantas' new low-cost Asia play". Australian Business Traveller. Retrieved 23 July 2013.
  39. ^ "Finding a way out: escaping the regulatory confinement of foreign ownership rules". Airline Leader. Retrieved 23 July 2013.
  40. ^ "Jetstar confident of growth in Asia". The Australian Financial Review. Retrieved 23 July 2013.
  41. ^ "Asia joint ventures to see Jetstar go gangbusters". The Australian. Retrieved 23 July 2013.
  42. ^ "Qantas names low cost carrier Jetstar". Sydney Morning Herald. 1 December 2003. Retrieved 23 July 2013.
  43. ^ "Jetstar Asia launch". Travel Weekly. Retrieved 23 July 2013.
  44. ^ Singapore civil aircraft register retrieved 9 September 2013
  45. ^ "New Ownership Structure for Jetstar Asia and Valuair". Asia Travel Tips. Retrieved 23 July 2013.
  46. ^ Dabkowski, Stephen (25 July 2005). "Jetstar Asia in Valuair merger". Melbourne: The Age. Retrieved 23 July 2013.
  47. ^ "Qantas acquires shareholding in Pacific Airlines". Thanhnien News. Retrieved 23 July 2013.
  48. ^ a b "Our Fleet". Jetstar. Retrieved 23 July 2013.
  49. ^ "Jetstar Pacific ownership restructured". Sydney Morning Herald. Retrieved 23 July 2013.
  50. ^ "Qantas spreads wings with Jetstar Japan". Sydney Morning Herald. Retrieved 23 July 2013.
  51. ^ "Century Tokyo Leasing Corp acquires stake in Jetstar Japan". CAPA Centre for Aviation. Retrieved 23 July 2013.
  52. ^ "Qantas gets new CEOs, Ousted: Boral chief Mark Selway". The Power Index. Retrieved 23 July 2013.
  53. ^ "Singapore Registered Aircraft as at 31 March 2010" (PDF). Civil Aviation Authority of Singapore. Retrieved 30 July 2013.
  54. ^ "Singapore Registered Aircraft as at 30 April 2010" (PDF). Civil Aviation Authority of Singapore. Retrieved 30 July 2013.
  55. ^ "Photo of 9V-JSL". Airliners.net. Retrieved 30 July 2013.
  56. ^ "Photo of 9V-JSK". Airliners.net. Retrieved 30 July 2013.
  57. ^ "Qantas Airways Limited and Controlled Entities: Preliminary Final Report for the Financial Year Ended 30 June 2009" (PDF). Qantas Group. Retrieved 29 July 2013.
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