Jetstar Asia and China’s Shantou Government announced the carrier plans to launch three times weekly Singapore-Shantou service (China Hospitality News, 27-Nov-2009). Date of the launch was not disclosed. Jetstar Asia will operate the only direct scheduled service between the cities.
Jetstar Asia to launch Shantou service
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Jetstar Asia Part 2: The LCC's hiatus in fleet expansion persists in 2017; overcapacity concerns
This is the second half of an analysis report on Jetstar Asia. The first part examined the airline’s improved profitability and its focus on growing interline and codeshare traffic, which has boosted yields. This part will focus on expansion opportunities in secondary markets and Jetstar Asia’s decision to maintain capacity at current levels.
Jetstar Asia’s fleet has been held steady at 18 A320s since early 2014, when it reduced its fleet by one aircraft and suspended fleet expansion in response to overcapacity in the Singapore short haul market. Jetstar Asia is continuing the hiatus in its fleet expansion in 2017 as it believes its home market still suffers from overcapacity.
Singapore's Jetstar Asia Part 1: record profitability achieved as interline, codeshare traffic grows
Jetstar Asia is focusing on further growing interline and codeshare traffic while maintaining a very disciplined approach to capacity expansion. The Singapore-based LCC has not grown its fleet over the last three years and again is planning not to add any aircraft in 2017.
Jetstar Asia is now enjoying its highest level of profitability in its 12-year history, despite extremely competitive market conditions. Cost controls, lower fuel prices and surging traffic from full service airline partners, which generate significantly higher average yields, have boosted Jetstar Asia’s outlook.
However, Jetstar Asia is still not yet ready to commit to expansion, recognising that Singapore’s short haul market still suffers from overcapacity. The overcapacity situation could worsen in 2017, as other LCCs expand rapidly. Jetstar Asia is seeking to reduce its exposure to competing with LCCs further in the point-to-point market by attracting even more traffic from full service partners.