The Jetstar Group

 

THE JETSTAR GROUP

The Jetstar Group is the largest low cost airline in the Asia Pacific by revenue and has flown over 75 million passengers since it launched in 2004.

During fiscal 2010-2011, the airline carried almost 20 million (18.8 million) customers, making Jetstar the fastest-growing airline to reach this milestone in seven years of flying.

The Jetstar Group has grown from 400 employees in 2004 to more than 7,000 staff across the Asia Pacific today.

Collectively the Jetstar Group currently offers up to 3,000 flights a week to 57 destinations in 17 countries and territories across the Asia Pacific region with a fleet of 80 aircraft.

By end of 2011, the Jetstar Group will fly to over 60 destinations in 17 countries and territories across the Asia Pacific region with a fleet of 86 aircraft.

Jetstar is a value based, low fares network of airlines operating in the leisure and value based markets.

Jetstar’s mission is to offer all day, every day low fares to enable more people to fly to more places, more often.

Strategy & Structure

Jetstar is part of the Qantas Group’s two-brand growth strategy, where Qantas competes at the premium and business market and Jetstar focuses on leisure markets.

The Jetstar Group comprises:

• Jetstar Airways in Australia and New Zealand (wholly owned by the Qantas Group)
• Jetstar Asia based in Singapore. The company is managed by Newstar Holdings, majority owned by Singapore company Westbrook Investments (51 per cent), with the Qantas Group holding the remaining 49 per cent of shares
• Jetstar Pacific based in Vietnam (27 per cent held by Qantas with other shareholders including its largest shareholder, State Capital Investment Corporation)
• Jetstar Japan. The Jetstar Group (wholly owned part of the Qantas Group) and JAL each have a 42 per cent stake with investment support from Mitsubishi Corporation which holds the remaining 16 per cent share.

Brand

The Jetstar brand design is based on the Southern Cross constellation, with the orange star representing the smallest star of the Cross, Epsilon Crucis. The airline’s colours, orange, silver and black were chosen for their bold and modern feel.

Fleet

Current fleet:

As of October 2011, the Jetstar Group fleet consists of 80 aircraft, including:

• 60 Airbus A320-200 aircraft, seat-configured for 177-180 passengers.
• Six Airbus A321 aircraft, seat-configured for 210-214 passengers.
• 10 Airbus A330-200 aircraft configured into two cabins (economy and business), with a total capacity of 303-310 passengers.
• Five Boeing B737-400 (operated by Jetstar Pacific), seat-configured for 168 passengers.

Fleet by the end of 2011:

Jetstar will also add a further five aircraft to its fleet by the end of 2011 – four Airbus A320s and one Airbus A330. With these additional aircraft, the Jetstar Group will operate a total of 86 aircraft in its fleet by the end of the 2011 calendar year.

Fleet orders:

Jetstar has ordered 25 Boeing 787 “Dreamliners” due to be delivered from 2013, which delivers features such as larger windows to make flying more enjoyable and a different cabin pressure to reduce jetlag. In addition, Jetstar has recently ordered 99 A320 aircraft including 78 Airbus A320 NEOs to enter service in 2015. NEO stands for New Engine Option and uses new technology to reduce fuel consumption by 15 per cent.

In total, Jetstar has 170 aircraft on back order.

Network

Collectively the Jetstar Group offers flights to 57 destinations in 17 countries and territories as outlined below. An interactive route map can also be found on Jetstar.com.

• Australia: Adelaide, Ballina Byron, Brisbane, Cairns, Darwin, Gold Coast, Hamilton Island, Hobart, Launceston, Mackay, Melbourne (Avalon), Melbourne (Tullamarine), Newcastle, Perth, Sunshine Coast, Sydney, Townsville, Whitsunday Coast

• Cambodia: Phnom Penh, Siem Reap
• China: Beijing* (from 24 Nov 2011), Guangzhou (from 22 Dec 2011), Guilin, Haikou, Hangzhou, Ningbo, Shantou
• Fiji: Nadi
• Hong Kong: Hong Kong
• Indonesia: Bali, Jakarta, Medan, Surabaya
• Japan:  Osaka, Tokyo
• Macau: Macau
• Malaysia: Kuala Lumpur, Penang
• Myanmar: Yangon
• New Zealand: Auckland, Christchurch, Dunedin, Queenstown, Wellington
• Philippines: Manila
• Singapore: Singapore
• Taiwan: Taipei
• Thailand: Bangkok, Phuket
• United States: Honolulu
• Vietnam: Danang, Hanoi, Hai Phong, Ho Chi Minh City, Hue, Nha Trang, and Vinh

* subject to regulatory approval

Fares and customer experience

Jetstar customers only pay for what they need.  Customers can choose between two types of fares – Economy or Business (on selected international flights). Once a fare is selected, customers have the option to add on checked baggage between 15–40 kilos per passenger and/or a bundle of extras, which include items such as seat selection, in-flight products, fare flexibility, lounge access and Qantas Frequent Flyer Points.

For domestic flights on Jetstar Australia and New Zealand, passengers may choose to purchase a variety of snacks and beverages. Depending on the length of the sector, hot meals are also made available for purchase.

On Jetstar Asia’s short-haul flights, a variety of snacks, beverages, hot meals, comfort items and duty free goods are available for purchase.

On long-haul flights (onboard the Airbus A330-200), economy class passengers can choose to pre-purchase a variety of meals, entertainment, and comfort options to customise their flight experience.

Business class passengers enjoy wide comfy leather seats in a separate cabin and inclusions such as meals, entertainment and comfort packs along with seat selection and additional baggage.

Business passengers who choose a “Business Max” bundle also benefit from lounge access, Qantas Frequent Flyer Points and Qantas Frequent Status credits.

Interline and codeshare partners

The Jetstar Group has three codeshare partners on select Jetstar routes; Qantas, Japan Airlines and American Airlines.

The Jetstar Group has 21 interline partnerships on select Jetstar routes: American Airlines; Air Calin; Air Canada; Air France-KLM; Air Niugini; Air Pacific; Air Tahiti Nui; Cathay Pacific; Continental; Dragonair; Etihad; Finnair; Japan Airlines; LAN Airlines; Lan Argentina; Lan Ecuador; Lan Peru; Qantas; Qatar Airways; and Royal Jordanian.

Low fares

Jetstar endeavours to have the lowest fares on all the routes it operates and backs each and every fare with a Price Beat Guarantee.  Should any customer find a lower fare online, on the same day, same route and at a comparable time to Jetstar, Jetstar will beat the fare by 10 per cent.

Performance

Jetstar has been profitable every year since its launch in 2004. The airline delivered a result of AUD143 million underlying EBIT (Earnings Before Interest and Taxes) for the half-year ended December 2010, an 18 per cent increase from the prior corresponding period.

The Jetstar Group grew seat capacity by over 19 per cent and carried 8.4 million passengers (for half-year ended December 2010), an increase of 15 per cent from the previous corresponding period.

Awards

Jetstar Airways Awards:

• Best Low Cost Airline – Australia / Pacific 2011 (SkyTrax)

• Best International Budget Airline 2011 (About.com Readers’ Choice Award)
• Top 5 Carriers for Passenger Growth 2009 (Changi Airline Awards)
• Best Low Cost Airline - Australia and New Zealand 2009 (SkyTrax)
• Low Cost Carrier of the Year 2007 & 2008 (CAPA)
• Best Low Cost Airline Asia Pacific (Budgie$) 2008
• Best Low Cost Airline - Worldwide 2007 (SkyTrax)
• Best Low Cost Airline - Australia/Pacific 2007 (SkyTrax)
• Best Cabin Crew - Australia and New Zealand 2007 (SkyTrax)
• Operational Excellence 2007 (Airline Business)

Jetstar Asia Awards:

• Largest Growth in Passenger Traffic from Singapore 2011 (Changi Airline Awards)

• Top 10 Airlines by for Passenger Carriage - 2011, 2010, 2009, 2008 & 2007 (Changi Airline Awards)
• AsiaOne People’s Choice Award for Best Budget Airline for 2010
• Best Brand Experience Low Cost Airline in 2008 (Ad Asia Magazine)
• Best Low Cost Airline in 2006 - Asia and South East Asia (Skytrax)
• Best Asia Low Cost Carrier 2006-2007 (Changi Airline Awards)
• Low Cost Airline of the Year 2006 Merit Award (CAPA)
• Best Budget Airline of the Year 2006 (TTG Travel Awards)

Jetstar Pacific Awards

• Vietnam’s most popular e-commerce website for 2008.

Management

Jetstar Group CEO is Bruce Buchanan who is a founding executive of Jetstar.

CEOs of the Jetstar network of airlines are: David Hall (Jetstar Australia and New Zealand), Chong Phit Lian (Jetstar Asia) and Le Song Lai (Jetstar Pacific).