- CAPA Analysis
- Schedule Analysis
- Cargo Analysis
- Route Maps
- Fast Fact Report
- Airline Status
- IATA Code
- ICAO Code
- Main hub
- Singapore Changi Airport
- Business model
- Low Cost Carrier
- Airline Group
- Part of Jetstar Group
- Frequent Flyer Programme
- Qantas Frequent Flyer
- Association Membership
- Codeshare Partners
- Emirates Airline
Based in Singapore, Jetstar Asia is a low cost airline. Using the Qantas Group's Jetstar brand, Jetstar Asia has a network of services within Asia using A320 aircraft. Jetstar Asia/Valuair is 51% held by Westbrook Investments Pte Ltd (Westbrook) and 49% by Qantas.
Location of Jetstar Asia main hub (Singapore Changi Airport)
LCCs will continue to evolve into hybrids of the original core model. CAPA and OAG consider Jetstar Asia fits the LCC profile and it is included in our reporting on this basis. Please note: when reporting for an airline is changed from or to LCC the historical data is not affected and it can lead to a distortion in the current reported data. Contact us if you have any queries.
70 total articles
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.
Tigerair Singapore prepares to resume expansion in late 2017 and 2018; feeding Scoot will be crucial
Singapore Airlines (SIA) short haul LCC subsidiary Tigerair is planning to resume expansion in 2H2017, ending a three-year hiatus from growth. The resumption of fleet and capacity expansion is made possible by the completion of a turnaround effort.
Tigerair Singapore is now back in the black after more than two years of losses driven by overcapacity. Market conditions in Singapore have improved, and a virtual merger with Scoot is starting to open up new opportunities for expansion since Scoot needs Tigerair to feed its fast-growing medium/long haul operation.
Tigerair currently operates 23 A320 family aircraft, having reduced its fleet from a high of 27 aircraft in 2014. The LCC is now planning to add six A320s in 2017 and 2018, resulting in a new all-time high of 29 aircraft. Tigerair, which became 100% SIA owned in early 2016, also has 39 A320neos on order that will be used for a combination of fleet renewal and growth over the next decade.
Emirates, boosted by Jetstar Asia, will become the largest foreign full service airline in Singapore
Emirates is poised to overtake Cathay Pacific as the largest foreign full service airline in the Singapore market from early 2016 as it upgauges two of its seven daily Singapore flights to the A380. Emirates will have almost 42,000 weekly seats in Singapore in Mar-2016, a 12% increase over its current capacity and a 29% increase compared to Mar-2014.
Emirates has been a key contributor to growth in Singapore over the last two years during an otherwise very slow period for Changi Airport. The expansion would not have been possible without a new and fast growing partnership with Singapore-based LCC Jetstar Asia.
Jetstar Asia has enabled Emirates to use Singapore as a regional hub for Southeast Asia. Emirates already had hub status at Singapore with three fifth freedom destinations along with four daily non-stop flights from its main hub in Dubai.
Jetstar Asia is looking for opportunities to further boost yields and expand its network while continuing to refrain from fleet growth. The Singapore based LCC returned to the black in the fiscal year ending 30-Jun-2015 (FY2015) after enduring the most challenging year in its history in FY2014 due to overcapacity and sharp yield declines in its home market.
Jetstar Asia suspended fleet growth in early CY2014 and has since maintained a fleet of 18 A320s. But the carrier has been able to grow ASKs by improving utilisation, enabling it to add capacity in markets that have strong feed from interline or codeshare partners.
Unit revenues have been on the rise over the last several months and Jetstar Asia could see further yield improvements as it adds more new partners and expands existing partnerships. The carrier is also adding in late 2015 three secondary regional routes which are not served by any other LCCs as it tries to reduce its reliance on markets that are still suffering from overcapacity and irrational competition.
Every two hours, an Emirates aircraft – half of them A380s – departs Dubai for Australia. After India, the UK and US, Australia is Emirates' fourth largest market by seat capacity deployment but second largest, after the US, for available seat kilometres.
About one in every 10 seat kilometres flown by Emirates is en route to Australia. Emirates is the largest international airline in Australia after Qantas while its neighbour, Etihad Airways, is eighth largest. Etihad in Australia punches above its weight: globally it is 37% the size of Emirates but has 45% as many seats to Australia as Emirates does.
Qatar Airways is missing out. If its Australian capacity was in proportion to Emirates the way Etihad's is, Qatar would have around 18,000 weekly seats and 50-60 weekly flights, placing it on the heels of Cathay Pacific as the seventh largest airline in Australia. Instead Qatar has only 14 weekly flights, 4,700 seats and is Australia's 18th largest carrier.