Jetstar launches lower fares

Jetstar announced (17-May-2011) the launch of a "new and simple fare options" aimed at giving passengers more choice, flexibility and lower fares. The LCC is replacing its JetSaver Light, JetSaver, JetFlex and JetPlus fare classes, with an economy "Starter" fare, which includes just the seat and 10kg of carry-on baggage. Passengers can then tailor options to their preferences. "Plus" fares incorporate Qantas Frequent Flyer points and Status credits, free standard seat selection and a waiver of change fees, with "Max" fares also incorporating upfront and/or extra leg room seating and refundability. Qantas Frequent Flyer Points will be available on all fare bundles. Other highlights include: [more]

• "Business Max" fares will replace StarClass, and will be available on long-haul services operated on Airbus A330-200 equipment. Passengers will have the option to select an even lower Business fare by removing certain benefits, such as Qantas Frequent Flyer points. Both fares aim to give passengers:
  • More flexibility by allowed passengers to tailor fares to individual needs, including customised baggage allowance for each passenger on each leg of their journey on the one booking;
  • Added choice by allowing passengers to select only the things they want. They can continue to choose our lowest fare, a la carte options or select new pre-packaged value bundles;
• Lower fares achieved through further unbundling of the Jetstar service.

Qantas: "The intention here is to leverage the Jetstar network for some of our corporate market which is telling us that they'd like to earn Qantas frequent flyers points and status credits when they're travelling to markets that the Qantas brand isn't on. The group benefits are going to be quite considerable. It doesn't matter what the competition is doing in my mind - if Qantas plays its best game, I think Qantas is going to win." Alan Joyce, CEO. Source: The Australian Financial Review, 18-May-2011.

Jetstar: "It's [the changes in seat selection] about making sure that our structure enables us to drive ancillary revenues ... and making sure we've got products that really resonate with consumers. Even in a low-yield environment we're getting record ancillary revenue numbers but we're still getting our costs down and those two are enabling us to profitably deliver low fares." Bruce Buchanan, CEO. Source: The Australian Financial Review, 18-May-2011.