Jetstar Group CEO Bruce Buchanan said there was “no chance” he would take a back seat in LCC expansion in Asia, with competitors such as AirAsia aggressively expanding across the region (The Australian Financial Review, 25-Aug-2011). “We predict the market [in Asia] will grow rapidly and Jetstar will maintain its leadership position, Mr Buchanan said. This “gives us a competitive advantage” he said, adding the LCC would not grow for growth’s sake but is responding to rising demand for low-cost travel. Mr Buchanan said he is looking for Jetstar’s next Asian affiliate, with the CEO citing the Philippines, Taiwan, Macau and Hong Kong as potential bases.
Jetstar to press ahead with Asian expansion
You may also be interested in the following articles...
AirAsia exploring future opportunities in Northeast Asia: Chinese affiliate enticing, but difficult
AirAsia is doubling down its focus on North Asia with a regional office in Hong Kong overseen by former AirAsia executive Kathleen Tan, who is widely credited for AirAsia's strong Chinese relations and growth in China: AirAsia is the largest non-greater China airline company in the country. Across North Asia the opportunities are large, but the challenges equally big. A China-based AirAsia affiliate would appear to be a long term ambition.
More immediately, AirAsia is regaining a local Northeast Asia presence with the launch of AirAsia Japan Mk II in 2017. Although delayed from initial 2015 start-up projections, AirAsia Japan gives the group relevance in a large domestic market and significantly growing short haul international market.
Elsewhere in Northeast Asia the opportunities are mixed. Korea and Hong Kong are becoming saturated and remain protectionist. Macau and Taiwan are unlikely to be big enough to support a local AirAsia unit.
Australia and New Zealand hit highs in 2016, but 2017 will lose a little lustre
Australia and New Zealand enter 2017 on a different level from 12 months previously. The biggest change, not just compared to 2016 but since the global financial crisis, is that Qantas is revelling in a successful turnaround.