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Jetstar Asia

Barathan Pasupathi, CEO
Barathan Pasupathi
CEO
IATA Code
3K
ICAO Code
JSA
Website
http://www.jetstar.com
Main hub
Singapore Changi Airport
Country
Singapore
Business model
Low Cost Carrier
Network
International
Airline Group
Part of Jetstar Airways Group
Association Membership
IAOPA
Codeshare Partners
Emirates
Qantas Airways
SriLankan Airlines

Based in Singapore, Jetstar Asia is a low cost airline. Using the Qantas Group's Jetstar brand, Jetstar Asia has a network of services within Asia using A320 aircraft. Jetstar Asia/Valuair is 51% held by Westbrook Investments Pte Ltd (Westbrook) and 49% by Qantas

Location of Jetstar Asia main hub (Singapore Changi Airport)

LCCs will continue to evolve into hybrids of the original core model. CAPA and OAG consider Jetstar Asia fits the LCC profile and it is included in our reporting on this basis. Please note: when reporting for an airline is changed from or to LCC the historical data is not affected and it can lead to a distortion in the current reported data. Contact us if you have any queries.


 
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358 total articles

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61 total articles

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The Singapore LCC sector Part 2: Tigerair cuts capacity on 13 routes while Jetstar quietly expands

9-May-2015 10:35 AM

Singapore-based LCC Tigerair has cut capacity on 13 routes and suspended seven routes entirely as part of a network restructuring. The cuts have driven a reduction in Singapore's LCC penetration rate and led to a better supply-demand balance in a market which had been – and to some extent still is – suffering from overcapacity.

But the reductions at Tigerair also have created opportunities for competitors. While one of the other two main LCC players in the Singapore LCC sector, AirAsia, also has responded to the challenging market conditions by cutting capacity, Jetstar has quietly expanded.

Jetstar has added capacity over the last year on nine of the 13 routes it competes against Tigerair. Most of these routes have seen Tigerair reductions.

The Singapore LCC sector Part 1: Tigerair's losses in FY2015 should reverse as capacity is cut

7-May-2015 12:56 PM

Tigerair's pan-Asian vision is in abeyance. The Singapore-based LCC has reported more losses for the quarter and year ending 31-Mar-2015. The  group has now been in the red for four consecutive years, accumulating losses of over USD500 million.

But Tigerair’s outlook for the fiscal year starting 1-Apr-2015 (FY2016) is brighter as the group closed or sold its highly unprofitable overseas joint ventures in FY2015 and restructured its Singapore operation. The group also reduced the size of its fleet in FY2015 by subleasing aircraft and cancelling orders, a painful but necessary exercise. Tigerair is now planning to sell two more A320s in FY2016 as it reduces its operating fleet to only 23 aircraft.

Tigerair Group’s current seat capacity in Singapore is down by about 16% compared to May-2014, with nearly all the reductions occurring on competitive routes as Tigerair has been launching new routes which are not served by other LCCs. Total LCC capacity in Singapore also has been reduced, enabling Tigerair and other carriers to boost load factors and yields. But Tigerair continues to warn of overcapacity and intense competition in the Singapore market, which could impact its ability to complete a turnaround and become profitable in FY2016.

This is Part 1 of CAPA's analysis of the Singapore LCC sector.

Qantas heads towards a full year AUD1 billion profit and now needs to look for market growth

26-Feb-2015 8:14 PM

There's no room to stand still in the airline business. Qantas CEO Alan Joyce's often controversial measures during a turbulent four years are being vindicated. His aggressive transformation of Qantas appears now to be showing remarkable dividends, with the prospect of going from a billion dollar loss in 2014 to a billion dollar profit just a year on. Next on the agenda will be growth.

Qantas International has returned to profitability for the first time since the global financial crisis (GFC); this is partially due to depreciation gains following large write-downs in FY2014, but there is a fundamental redirection too. Qantas Domestic has bounced back now that the domestic capacity war is over and with room for further improvement. Jetstar has returned to profit but is still under-performing compared to previous years, again with more upside.

Lower fuel costs will deliver Qantas a minimum AUD500 million benefit, setting the group up for a full-year profit around AUD1 billion. The fuel tailwind is an added bonus. Even without it, there are structural changes that will continue to flow through irrespective of that windfall. "Today we can see a bright future," Mr Joyce says.

Yet that proclamation means Qantas must address calls for it to return to growth now that its dark days of restructuring are, if not all behind it, at least nearing fruition. Initially growth is expected to be mostly in the international market as the relatively mature domestic market may be challenged by weak consumer sentiment. For the longer term international growth must be the goal; this will hinge on the synergies Qantas can gain with its key international partners, and if Qantas is successful in lobbying for a slowdown in foreign carrier growth.

Singapore Changi passenger growth slows to less than 1% as LCCs' expansion and tourism slow

3-Feb-2015 12:34 PM

Singapore’s aviation market grew by only 0.7% in 2014, the smallest increase since the global financial crisis in 2009. Passenger growth in 2015 will again be very modest as capacity is maintained roughly at current levels.

Singapore has been impacted by capacity adjustments by its struggling low-cost carrier sector. Singapore’s LCC penetration rate, which increased steadily from 2003 to 1H2014, declined in 2H2014.

Singapore also has been impacted by declining visitor numbers. All of four of Singapore’s largest source markets – Indonesia, Malaysia, China and Australia – recorded drops in visitor numbers in 2014. Passenger traffic to Thailand, one of Singapore’s largest outbound and transit markets, declined due to the civil unrest in Bangkok.

Singapore short-haul LCC market remains challenging despite adjustments at Jetstar Asia and Tigerair

12-Nov-2014 11:00 AM

Overcapacity continues to impact Singapore’s LCC sector, pressuring yields and resulting in unsustainable losses. But the market could start to see improvements in 2015 driven by capacity adjustments and increased reliance on partnerships.

Singapore’s two short-haul low-cost carriers, Jetstar Asia and Tigerair, have both been unprofitable since early 2013 as the market failed to absorb a surge in capacity. But Tigerair has started to reduce capacity in recent months while Jetstar has modestly increased capacity without increasing its fleet.

Both LCCs meanwhile are expanding transit traffic and partnerships. By relying less on Singapore’s relatively limited local market, Jetstar Asia and Tigerair Singapore should be able to eventually improve yields to a sustainable level.

Lion’s Malindo Air to compete vs AirAsia, Jetstar & Tigerair on world’s top international LCC route

12-Oct-2014 6:00 PM

Lion Group Malaysian affiliate Malindo Air is planning to launch services on 3-Nov-2014 to Singapore, which will become the hybrid carrier’s 10th international destination from Kuala Lumpur International Airport (KLIA). Malindo will be the fourth LCC on the KLIA-Singapore route, which will become the largest international LCC route in the world based on seat capacity.

Lion will join Asia’s other three main LCC groups – AirAsia, Jetstar and Tigerair – in competing in the busy Singapore-Kuala Lumpur market. While Malindo may find the local market challenging, particularly from a Singapore point of sales perspective given its unfamiliar brand, the carrier will also offer connections passengers beyond Kuala Lumpur with a focus on South Asia.

Kuala Lumpur-Singapore will be Malindo’s first destination with 162-seat 737-800s. Malindo is taking two 737-800s in 4Q2014, supplementing its existing jet fleet of six 180-seat 737-900ERs. The 737-800s will also be used to launch service to Bandung in Indonesia and to add a second daily flight to Bangkok.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.