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Jetstar to expand Singapore twice as fast as Australia

14-Feb-2011 10:36 AM

Jetstar CEO Bruce Buchanan stated that he will employ pilots and support staff in the LCC’s Asian bases at a faster pace than Australia (The Australian Financial Review, 14-Feb-2011). The CEO stated Jetstar would not be able to profitably expand under the same wage agreements and costs structures as Qantas, saying Jetstar will need to hire staff on similar terms to Asia-based LCCs to better compete on price. The airline will grow more than twice as fast in Singapore compared with Australia. He said Australia-Asia routes are also coming under threat from intense competition from other airlines.

Jetstar: “As we continue to grow in Asia, serving markets like Singapore, Vietnam and China, there is no possible way we can do that with an Australian-based contract ... The market share of Australian carriers has been declining for years because of the growth of Middle Eastern, Chinese and others carriers, and they’re not doing it on Australian wages or contracts.” Bruce Buchanan, CEO. Source: Australian Financial Review, 14-Feb-2011.