5-Sep-2012 5:45 PM

JV partners must be carefully selected to ensure IP is protected: Jetstar

Jetstar CCO David Koczkar, speaking at CAPA's LCC and New Age Airlines Conference in Macau, stated (05-Sep-2012) there is a need to carefully select its JV partners to ensure its intellectual property of running a business with foreign partners is protected. He noted the Group is selecting partners "we believe are there for the long term” as that avoids the risk of partners learning the Jetstar model and then establishing a carrier without Jetstar and possibly in competition with Jetstar. China Eastern Airlines' JV partner in Jetstar Hong Kong, has openly stated it is using that JV to learn about the LCC model from Jetstar. Mr Koczkar, however, noted the Jetstar Group's strength in this arena, stating, “There’s only been one full service carrier that has been able to launch a LCC and sustain the growth”. A wholly-owned subsidiary he said, is “very difficult to replicate”. Meanwhile All Nippon Airways, which partners with AirAsia in AirAsia Japan, may consider launching its own LCC or different subsidiaries of Peach in the medium to long term.

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