The New Zealand Herald reports that Jetstar is banking on budget-conscious travellers to support the airline as it expands in New Zealand and moves towards superseding some Qantas services. The subsidiary of Qantas Monday announced it would fly once a day from Auckland to Sydney and once a day to the Gold Coast from next April. Jetstar says it has overheads about 40% lower than parent company Qantas, which set it up in 2004. Jetstar CE Bruce Buchanan said that as people were forced to tighten their belts the appeal of lower fares grew. “The interesting thing will be how much the current economic climate changes the demand profiles.” Buchanan said the flights announced yesterday were complementary to Qantas’ four daily Sydney flights but if passengers demanded it, Jetstar could play a bigger part in the overall Qantas mix.
The New Zealand Herald announced that Australian airline Jetstar will launch its transtasman services from Auckland with an $89 fare sale from midday today. The carrier this morning confirmed plans to expand its New Zealand operations and has put up hundreds of seats to Sydney and the Gold Coast at $89 for just 89 minutes. The airline will begin daily flights out of Auckland from April 28, subject to regulatory approval. Between eight and 10 per cent of Jetstar’s 5000 weekly seats would be offered at the low price, although its normal one-way fares would be the industry entry standard of $199.
Thahn Nien Daily reports that the Civil Aviation Administration of Vietnam (CAAV) is considering an application for Mekong Aviation Company to become Vietnam’s third private airline operator. The airline is awaiting Ministry of Transport approval. The carrier, which will have a registered capital of US$12m, plans to start domestic flights next year from its base at Hanoi’s Noi Bai Airport to destinations such as Phu Quoc, Nha Trang and Can Tho. It is expected to operate a fleet of about 10 100-seat airplanes. The first two licensed private airlines, Vietjet Air and Air Speed Up, plan to begin operations in 2009.
Reuters reports that AirAsia expects stronger passenger growth next year as it adds new routes and planes, saying the darkening economic outlook will boost demand for its budget flights. Southeast Asia’s largest low-cost airline plans to add nine new aircraft in 2009 to its existing fleet of 72 planes, said boss Tony Fernandes. “I am very optimistic. I mean you just saw easyJet came out with some very aggressive numbers on passenger growth, and Europe is in a much worse position than Asia,” he said. The airline said on Monday passenger volumes grew 20% in September despite the global credit crunch, but it also warned of slowing demand. “I am not saying that the market won’t shrink, but I am saying that AirAsia is in a strong position to capitalise on whatever economic situation,” said Fernandes.
The Age reports that Tiger Airways says bookings are up despite an escalating global economic crisis. A spokesman said travellers are seeking cheaper alternatives to allow them to fly by air. “We are not seeing a decline… We are seeing that people are substituting from premium carriers to budget carriers like Tiger because they still need to travel,” he said. “Forward bookings show that people are still booking and they are still travelling but they are looking for the best price.” While Tiger Airways will monitor the travel market closely, the spokesman said the airline would proceed with plans to expand flights and its fleet. From December 1, the airline will increase service from Singapore to Kuala Lumpur to five times a day from once a day, he said. Tiger Airways says it would increase flights to Bangkok, Phuket and Macau later this month.
Reuters warns that airline bankruptcies around the world are set to double over the winter to at least 70 for the year, according to the DG of the European Regional Airlines (ERA) industry body. “We are now up to around 35 (bankruptcies) this year. I see at least that number over the winter,” Mike Ambrose said. He added that the current climate for airlines was “far more significant, far more far-reaching” than the period after the attacks on New York in 2001, describing the current year as a “year of hell.” “At 9/11 there was a terrorist attack that created a loss of confidence in safety. This is far more pernicious – it is a loss of confidence in investment,” he said. “There are a major set of problems – such as governments shoring up banks – that go way outside aviation and take longer to resolve.” Ambrose called for a lower regulatory burden for airlines, estimating that a European scheme to make airlines pay more for carbon emissions could add E6m a year to the cost of a typical regional airline.
Xinhua reports that Singapore and Malaysia have expanded their bilateral air agreement, allowing both countries’ low cost carriers to increase services. “The new agreement gives low cost carriers of both countries the right to operate between Singapore and three cities in East Malaysia – Kota Kinabalu, Kuching and Miri,” said Singapore’s transport ministry. It said that from Nov. 1, Singapore low cost carriers will be allowed to operate a total of seven flights a week to each of the above cities, and these will be later increased to 14 flights to each city from March 1. The same entitlements have been granted to Malaysian carriers.
AFP reports that Jetstar Asia and Tiger Airways will start operating flights between Singapore and Kuala Lumpur from 1 February. And the price war has begun to promote this new route. To kick off the new flights to KL, both Jetstar and Tiger have come up with various promotions. Tiger is giving away 15,000 seats free when passengers book online from Monday, 7 January. Jetstar is offering seats from 88 Singapore cents since its promotion started on 5 January.
AFP reports that Boeing has won an order from Lion Air for 22 single-aisle 737s, in a deal valued at more than US$1.7b at list prices. Boeing said it was confirming a previously unidentified Lion Air order for 22 Next-Generation 737-900ER (Extended Range) airplanes that had been placed during 2007 Q2. The order brings Lion Air’s combined orders for the 737-900ER to 122, Beoing said.
VietNamNet Bridge reports that Pacific Airlines is offering 100,000 one-way tickets at discount rates for domestic flights between Ho Chi Minh City and Hai Phong to promote its new route. Prices start at just VND15,000 (not including fees, taxes etc) one-way. Under the latest promotional campaign, tickets must be booked via the Pacific Airlines website and paid for with credit cards before May 31, 2008.
