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Tag: jetstar

  • Jetstar Asia to Close, Impacting 500 Jobs in the Singapore Airline Industry

    Jetstar Asia to Close, Impacting 500 Jobs in the Singapore Airline Industry

    Australian airline Qantas has made the difficult decision to close its budget carrier, Jetstar Asia, effective July 31. This move comes in response to escalating operational costs, increased fees at Singapore’s Changi Airport, and fierce competition across the region.

    Operational Costs Taking Their Toll

    Jetstar Group Chief Executive Officer Stephanie Tully highlighted the widespread impact of rising costs on the airline’s operational framework. The recent hike in airport fees at Changi, implemented on April 1 as part of a S$3 billion (US$2.3 billion) upgrade, played a significant role in this challenging situation. “The airport fees are a part of that. That has had an impact on the business,” she stated, referencing comments made to Bloomberg.

    As Qantas Group Chief Executive Vanessa Hudson expressed, this is a heavy moment for the Jetstar Asia team. “We are incredibly proud of them. This is a very tough day for them. Despite their best efforts, we have seen some costs for Jetstar Asia’s suppliers rise by up to 200%, which has materially changed its cost base.”

    Staff Impact and Passenger Reassurance

    The closure will inevitably affect around 500 staff members, who will be offered redundancy benefits and assistance in finding new employment, as reported by AFP. Meanwhile, passengers whose flights have been canceled will be entitled to refunds, ensuring they are compensated as the airline winds down operations.

    Prior to the announcement, Jetstar Asia was projected to incur an underlying loss of A$35 million (US$23 million) this financial year, with Qantas owning 49% of the airline. The cancellation of operations means that the fleet of 13 A320 aircraft will soon be redeployed to Australia and New Zealand, creating over 100 local jobs.

    In a strategic move, Qantas noted that shutting down Jetstar Asia could generate up to A$500 million to bolster the group’s fleet renewal program. The decision was made in conjunction with Westbrook Investments, which holds a 51% stake in the regional carrier.

    While the closure is certainly a somber development, it raises some intriguing questions about the future of air travel in a region that continues to evolve rapidly.

    Questions & Answers

    Why is Qantas closing Jetstar Asia?
    Qantas is shutting down Jetstar Asia due to rising operational costs, increased airport fees at Changi Airport, and intense regional competition making it financially unviable to continue.

    What happens to the staff of Jetstar Asia?
    Approximately 500 employees will receive redundancy benefits and support in finding new jobs as the airline winds down its operations.

    How will affected passengers be compensated?
    Passengers whose flights are canceled will be offered refunds, ensuring they are financially protected during this transition.

  • Vietnam Airlines, Jetstar Pacific cut China flights

    Vietnam Airlines, Jetstar Pacific cut China flights

    Vietnam Airlines and Jetstar Pacific will stop flights on some routes to China and reduce them on others amidst the ongoing coronavirus outbreak.

    National flag carrier Vietnam Airlines will suspend routes between Vietnamese localities and China’s Beijing, Shanghai, Guangzhou and Shenzhen cities starting February 4. It will stop flying to and from China’s Chengdu starting February 5, and Macau starting February 6.

    The airline will also suspend flights on the Hanoi-Hong Kong route from February 6 and reduce the number of flights between Ho Chi Minh City and Hong Kong from 10 to 7 per week starting the same day.

    It will disinfect all aircraft upon returning to Vietnam from China to prevent the spread of 2019-nCoV, which originated in Wuhan City of Hubei Province in mainland China.

    Jetstar Pacific, the budget carrier of Vietnam Airlines, will stop operating flights on the Hanoi-Hong Kong route starting February 6, Hanoi-Guangzhou starting February 9 and HCMC- Guangzhou starting February 11.

    Passengers who wish to fly between the mentioned destinations before the suspension can change dates free of charge or ask for a refund from both airlines.

    Budget carrier Vietjet had earlier announced that it will suspend all China flights starting Saturday.

    Over 30 airlines in the world have suspended all or certain flights to China in the wake of nCoV, which as of Saturday had killed 259 people in the country.

    As of Friday, Vietnam had quarantined 97 people, of whom 32 remain isolated pending test results, according to the Ministry of Health.

    As of Saturday morning, the country has recorded six confirmed cases of infection: two Chinese nationals, and four Vietnamese, including three returning from Wuhan, and a female hotel receptionist who has caught the coronavirus infection from the two Chinese nationals presently quarantined in Saigon.

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  • Vietnam Airlines, Jetstar to sell million tickets during month-end holidays

    Vietnam Airlines, Jetstar to sell million tickets during month-end holidays

    Vietnam Airlines and Jetstar Pacific will sell nearly one million seats on 4,700 domestic and international flights during the Reunification Day (April 30) and Labour Day (May 1) holidays from April 26 to May 5.

    Vietnam Airlines will sell nearly 800,000 of them, 78,000 more than last year.

    The State-owned carrier will focus on services from Hà Nội, HCM City, Đà Nẵng, Phú Quốc, and Nha Trang domestically and the Japan, South Korea, Thailand, and Cambodia sectors.

    It owns a 70 per cent stake in Jetstar.

    The two airlines have urged passengers to plan their travel early, use online check-in services and kiosks at airports to save time.

    They should buy their tickets at www.vietnamairlines.com and www.jetstar.com/vn or from their offices and official agents, and request invoices to ensure they are not deceived by fake tickets or high fares.

     

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  • Jetstar Pacific leads in flight cancellations, delays

    Jetstar Pacific leads in flight cancellations, delays

    Low-cost carrier Jetstar Pacific has cancelled and delayed about 15.4 percent of 568 flights it operated in a week, according to the latest report released by the Civil Aviation Authority of Vietnam (CAA).

    The CAA calculated the number of delays and cancelations in four Vietnamese carriers – Vietnam Airlines, VietJet Air, Jetstar Pacific and Vasco from May 31 to June 6.

    Jetstar Pacific was closely followed by national flag carrier Vietnam Airlines which delayed 380 flights and cancelled ten others, or approximately 15 percent, out of a total of 2,605 weekly flights.

    VietJet Air came third with 328 delays and four cancellations among 2,311 flights, or 14.4 percent.

    Vasco had no cancellation and only one delay out of 249 flights.

    There were 5,733 flights made available by the four airlines during the first week of June, of which 810 were delayed and cancelled, the CAA announced, adding that delays and cancellations accounted for 13.8 percent and 0.3 percent, respectively.

    Late arrival of planes before they take off again for return services was the main cause behind the problems, the CAA explained. Such a reason caused 69.1 percent of the delays and cancellations during the reviewed period.

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  • Jetstar adds low-cost services between Australia and Vietnam this summer

    Jetstar adds low-cost services between Australia and Vietnam this summer

    The Qantas unit hopes to break the monopoly currently held by national carrier Vietnam Airlines, which is also a Qantas partner. Australia’s trade and tourism ministry on Wednesday announced two low-cost direct services from Melbourne and Sydney to Ho Chi Minh City by Jetstar Airways.

    The new services will take off in May this year, Assistant Minister Keith Pitt told a meeting with local media in HCMC.

    Jetstar Airways, a wholly owned subsidiary of Australia’s Qantas Airways, will operate the flights four times a week from Sydney and three times weekly from Melbourne using the Boeing 787 Dreamliner.

    Ticket sales began in January. Flights from Melbourne to HCMC will be launched on May 10, and flights from Sydney will commence one day later, subject to regulatory approval.

    “These flights will stimulate inbound tourism, business and trade to Australia. In the last 12 months, there has been a 21 percent increase in visitors from Vietnam to Australia and we expect to see that grow with the introduction of our low fares on the route,” Paul Rombeek, Jetstar Group’s Global Head of Sales, told the press.

    The new flights from Australia to HCMC by Jetstar Airways would link up to 15 domestic destinations from HCMC thanks to daily services operated currently by Vietnamese domestic partner Jetstar Pacific, Jetstar Group Chief Executive Jayne Hrdlicka said in a statement.

    Jetstar Pacific, 70 percent owned by flag carrier Vietnam Airlines and 30 percent by Qantas, is growing rapidly in an attempt to fend off a competitive threat from domestic budget rival VietJet, she said.

    Vietnam Airlines and Qantas last year said they would invest $139 million to more than double the size of Jetstar Pacific’s fleet to 30 aircraft by 2020.

    Jetstar’s non-stop flights from Australia to Vietnam will break a monopoly of direct services held by Vietnam Airlines, said the report.

    More than 320,000 Australian visitors came to Vietnam last year, up 5.6 percent against 2015. The figure in the first three months this year was over 95,000, up 3.4 percent, according to data of the Vietnam National Administration of Tourism.

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  • Jetstar Pacific launches low-cost flight between Hong Kong and central Vietnam

    Jetstar Pacific launches low-cost flight between Hong Kong and central Vietnam

    It is the carrier’s third international flight route from Da Nang City. Jetstar Pacific has started its Da Nang – Hong Kong service, using Airbus A320 aircraft with 180 seats in economy class, to meet the rising travel demand and promote tourism in Vietnam’s central resort city, the Da Nang tourism department said.

    Tickets cost from VND290,000 ($12.75) for one-way flight, which lasts one hour and 45 minutes, the department said in a report, citing the airline.

    The carrier will run three flights per week on Monday, Tuesday and Friday.

    The route, which was launched Monday, is the budget airline’s third international route linking Da Nang with foreign cities, after Taipei of Taiwan and Singapore.

    Jetstar Pacific, 70 percent-owned by flag carrier Vietnam Airlines and 30 percent by Australia’s Qantas Airways, currently operates flights to 80 destinations of 17 countries.

    International tourist arrivals to Da Nang last year jumped 31.6 percent from 2015 to 1.7 million.

    Cathay Dragon and HK Express have already been operating on the Da Nang-Hong Kong route, with seven flights and three flights per week, respectively.

  • Jetstar Pacific to source A320 components from AFI KLM E&M

    Jetstar Pacific to source A320 components from AFI KLM E&M

    Low-cost airline Jetstar Pacific has struck a long-term deal with Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) under which the latter will provide component support for Jetstar Pacific’s Airbus A320 aircraft.

    Under the contract, AFI KLM E&M will also provide Jetstar Pacific with repair services and a spares pool to ensure spare parts and necessary materials are ready for maintenance and repair work.

    The deal will take effect this month.

    Speaking at the signing ceremony, Nguyen Quoc Phuong, General Director of Jetstar Pacific, said the cooperation with AFI KLM E&M, a leading partner in the air industry, will bring significant improvements in maintenance costs and duration, thus help the airline create more timely and comfortable flight experience for customers.

    Jetstar Pacific, with two major shareholders of Vietnam Airlines and Qantas of Australia’s Qantas Airway, now has a fleet of 14 Airbus A320 planes, which is expected to increase to 30 by 2021.

    According to Fabrice Defrance, Senior Vice President of AFI KLM E&M, the contract between Jetstar Pacific and AFI KLM E&M marks the beginning of a long-term cooperation between the two sides and affirms the strong presence of the company in Asia.

    AFI KLM E&M has been providing support for nearly 2,000 planes operated by 200 airlines across the world.

  • Jetstar Asia celebrates 2.5 mln passengers between KL to Singapore

    Jetstar Asia celebrates 2.5 mln passengers between KL to Singapore

    Jetstar Asia is celebratings its two and a half millionth passenger on the Singapore and Kuala Lumpur route, one of the busiest on the airline’s network.

    In a statement, the low-cost carrier said the milestone coincides with Jetstar Asia’s move of its operations to the klia2 terminal in Kuala Lumpur on July 8.

    Chan Kim Wah, a Malaysian national who works in Singapore, has won himself a RM1,000 flight voucher for being the 2.5 millionth passenger to travel between Singapore and Kuala Lumpur.

    After launching with one daily service in 2008, Jetstar Asia now operates up to 30 weekly services and continues to enhance the travel experience for thousands of passengers who fly between Singapore and the Malaysian capital each year.

    Marking the celebration in Kuala Lumpur, Jetstar Asia Chief Eexecutive Officer Bara Pasupathi said that demand for the route has continued to grow due to the strong business and cultural ties between the two countries.

    “Singapore travellers love visiting Kuala Lumpur, and our commitment to low fares has made more frequent trips for business meetings as well as great food and shopping more affordable.

    “The recent opening of Southeast Asia’s largest factory outlet malls less than two kilometres from the klia2 terminals will serve as new attractions for shopping-savvy Singaporean travellers to visit Kuala Lumpur more often,” he said.

    The malls are part of the KLIA Aeropolis, also known as Malaysia Airports’ airport city master plan.

    Meanwhile, Malaysia Airports Senior General Manager of Operations Services, Datuk Azmi Murad, said: “Airports are no longer just transit points but a destination in their own right.

    “klia2 is a shopping destination with a total of 225 retail and FB outlets throughout the terminal and nearly 200 retail and F&B outlets at gateway@klia2, a shopping annexe to the terminal which aims to cater not only to travellers but to the surrounding community as well.

    “We are delighted to welcome Jetstar Asia to the klia2 terminal today.

    They are joining an increasing number of airlines that recognise klia2 as an exciting, vibrant and convenient terminal especially in terms of its seamless connectivity and world-class facilities.” There are no changes to Jetstar Asia’s schedule and check-in facilities and timings as a result of the move to klia2, and customers can continue to use the enhanced web check-in service straight-to-gate in Kuala Lumpur.

    “The move to klia2, a purpose-built LCC terminal, is an exciting development for Jetstar Asia as our investment in self-service options like straight-to-gate will follow our customers to the new terminal,” Pasupathi noted.

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  • Qantas still positive about Jetstar’s Asian growth plans

    Qantas still positive about Jetstar’s Asian growth plans

    Jetstar’s Asian division reported an underlying loss before interest and tax of $33 million in the first half of the financial year.

    Qantas Airways has no plans of abandoning its investment in Jetstar’s Asian arms despite disappointing returns to date because the growth potential is so big, says Qantas chief executive Alan Joyce.

    All of the airline’s other divisions are expected to report returns exceeding their cost of capital this financial year, amid forecasts the carrier could report an underlying pre-tax profit approaching $1 billion. But Jetstar’s Asian division, including businesses in Singapore, Japan, Vietnam and Hong Kong, reported an underlying loss before interest and tax of $33 million in the first half of the financial year.

    “What we are investing in Asia for the group, it is a very small amount of capital,” Mr Joyce said on Sunday on the sidelines of the International Air Transport Association annual meeting in Miami. “It is done in a very capital-light way. So for the group to get its cost of capital, this year as an example, [Jetstar in Asia] won’t return its cost of capital but the overall group will. For us these are low capital cost investments for huge growth potential.””For us these are low capital cost investments for huge growth potential.”: Qantas boss Alan Joyce.

    Mr Joyce noted the Asian market is the fastest-growing aviation market in the world, and said he believed it would eventually become the most profitable aviation market in the world. Qantas has invested in Jetstar’s Asian arms through joint ventures with local shareholders.

    Jetstar Group chief executive Jayne Hrdlicka said Singapore-based Jetstar Asia an Vietnam-based Jetstar Pacific are expected to be profitable in the second half of the financial year.

    “Significant capacity has come out of the [Singapore] market post the FY14 results,” she said. “Everybody did it tough with too much capacity coming into the market. So that has rationalised. A little bit of it is starting to come back in because the Singapore dollar is so strong. But we are very confident that the outlook will improve.

    In the meantime, Jetstar Japan remains loss-making and Jetstar Hong Kong has yet to receive long-delayed government approvals to begin flying and it has sold all but one of its original nine aircraft.

    Ms Hrdlicka admitted Jetstar had misjudged the ease of gaining regulatory approvals in Hong Kong.

    “Our expectations were not lined up with the reality of the way this government is making decisions in Hong Kong,” she said.

    But she said fellow Jetstar Hong Kong shareholders China Eastern and Shun Tak Holdings were more “patient and longminded”, especially now that the Hong Kong government has committed to a third runway at the busy Hong Kong International Airport.

    “The other aspect that is brewing confidence in our shareholders is the Hong Kong economy needs the tourism flows into Hong Kong,” she said. “Chinese tourism is significantly down. For some retail sectors in Hong Kong, they are off by 30 per cent. So that flow of customers who need low fares to make Hong Kong affordable, to have the Hong Kong experience is really important to the Hong Kong economy and supports the Hong Kong people.”

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