Qantas to expand Jetstar's operations in China
Qantas confirmed it is actively looking to expand Jetstar’s operations in China (Reuters, 12-Aug-2010). CEO, Alan Joyce, stated Jetstar Asia increased its capacity by 46% in the region in FY2009-10. Mr Joyce also commented that other carriers looking to compete “head to head” with Jetstar in Asia will only be playing catch up (AAP, 12-Aug-2010). The comment was in response to questions concerning the expected impact of Tiger Airways’ and Thai Airways’ plans to launch new LCC, Thai Tiger. The carrier also plans to expand long-haul operations, with services between Singapore and Japan using its A330 aircraft. Jetstar Pacific is close to breaking even.
Qantas: “Jetstar is in a very good position in all lines. In revenue terms, it's the leading low-cost carrier in the Asia Pacific region, it's got a double-digit growth for the last four years, 20% growth this year. So everybody else is playing catch up … People are going to be trying to go into markets and replicate or improve on Jetstar's network in the region. But we're continuing to invest and we're continuing to grow and I believe that our model, our focus, our brand and our management team are the best in the low-cost carrier space. We will do exceptionally well in that region and we will play our own game, and if it's the best game that we continue to play, that will win the day,” Alan Joyce, CEO. Source: AAP, 12-Aug-2010.