Falling dollar driving huge gains for Jetstar

[pauly7]

With the new routes coming on line in Feb hopefully this helps out QLD tourism a bit!


Falling dollar driving huge gains for Jetstar

AUSTRALIA'S falling dollar and a big sell by Japan's local queen of pop are driving huge gains for Jetstar in defiance of the slump in Japanese visitor arrivals.
Qantas' budget carrier says that inbound passenger numbers this year have surged 10 per cent, with 19 weekly services averaging loads 80 per cent full.

Falling dollar driving huge gains for Jetstar | Business | News.com.au

 

[JohnK]

It is not easy to workout what sort of impact the loads quoted by QF/JQ have had on the Australian economy. If I remember correctly in October the number of outgoing passengers from Australia exceeded the number of incoming passengers to Australian for the first time in history.

Not sure how significant new JQ routes will be to tourism when overall number of tourists to Australia is not as expected.

 

[turtlemichael]

If that news.com article reads like a Jetstar press release, it's probably because it is. The following quote from the Tourism Australia website, quoting ABS statistics, gives a different perspective.

Japanese visitor arrivals to Australia in August were down by 12.4 per cent
(47,980 arrivals) on the same month of the previous year. In September they
were down by 24.0 per cent (35,276 arrivals) on the same month of the previous
year. In the seven months to September Japanese arrivals were down by 18.5​

per cent (347,404 arrivals) relative to the same period last year.

All the Jetstar piece proves is that what is good for the Qantas Group is not necessarily good for Australia, particularly if you are one of the many people dependent on tourism for a living. And this apparent improvement in the Qantas Group bottom line is subsidised by taxpayer dollars.

 

[Platy]

With the new routes coming on line in Feb hopefully this helps out QLD tourism a bit!

Hopefully, Pauly7, you are right!

However, even a superficial logical consideration puts these figures in serious doubt.

".....Since launching the Japanese service in March 2007, passenger numbers have increased from just 34,000 for the March to June 30 period last year, to 307,000 last financial year.

Jetstar chiefs are reluctant to provide the latest July to November figures other than to say they are running well above 150,000 and 10 per cent above the same period last year..."

Now IF these figures are referring to JETSTAR flights (rather than QF + JQ), it is very hard to reconcile the termination of the JQ flights from Cairns to Osaka/Nagoya (the ONLY JQ flights to Japan uintil a few weeks ago).

Why STOP these flights if they have been supporting such a wonderful increase in patronage???

Why STOP teh daily QF 767s to NRT via CNS from SYD and BNE if there is such an incraese in pax???

Now consider the quoted figures more carefully. 150,000 pax in 5 months equates to 30,000 per month or 1,000 per day on average. How do you accommodate 1,000 pax per day on ONE Jetstar A330-200????? That's about double what can be handled (assuming we care combining both inbound and outbound figures).

Eagle eyed regular travellers may have noticed the proliferation of JQ codeshare flight numbers on QF metal. The only way those figures could work is IF pax have been travelling on those two extinct QF 767s to NRT on a JQ flight number in advance of the cutover from QF to JQ services on 18th December 2008. In fact, on my last flight on the extinct QF service on Dec 12th the CSM referred to the confusion being caused as JQ passengers rock up for QF flights and enjoy full service which they weren't expecting!

Remember also, that the NEW daily CNS-NRT service is consolidating TWO QF 767s so one must expect a reasonably healthy looking forward loading as the well meaning folk who purchase QF tix are dumped on JQ without being told of the change to their itinerary.

IMHO these figures as presented are bogus! It is no surprise to see Turtlemichael's sobering figures from the ABS.

 

[simongr]

And this apparent improvement in the Qantas Group bottom line is subsidised by taxpayer dollars.

Canyou clarify what cash subsidies are being provided to QF by the Government?

 

[Platy]

Canyou clarify what cash subsidies are being provided to QF by the Government?

The State QLD Gov is reportedly subsidising the new OOL-CNS Deathstar orbit as a reaction to the loss of the QF services into CNS in an effort to bolster tourism numbers into CNS.

IMHO a ridiculous thing to be doing...

 

[turtlemichael]

Canyou clarify what cash subsidies are being provided to QF by the Government?

As Platy said.

 

[simongr]

The State QLD Gov is reportedly subsidising the new OOL-CNS Deathstar orbit as a reaction to the loss of the QF services into CNS in an effort to bolster tourism numbers into CNS.

IMHO a ridiculous thing to be doing...

Thanks for that - I would concur with the opinion...

 

[JohnK]

Now consider the quoted figures more carefully. 150,000 pax in 5 months equates to 30,000 per month or 1,000 per day on average. How do you accommodate 1,000 pax per day on ONE Jetstar A330-200????? That's about double what can be handled (assuming we care combining both inbound and outbound figures).

Clever marketing is good but how much longer can they get away with reporting blatant lies? Assume one JQ 332 and 2 QF 767 services per day to/from CNS they would still struggle to accommodate 1,000 oassengers even with 100% utilisation.

I love the way QF/JQ market a JQ route as successful and then dump the route. :shock:

 

[Mal]

Canyou clarify what cash subsidies are being provided to QF by the Government?

I don't think figures are public - but it is on the public record.
Ministerial Media Statements

Note that the Qld Govt has previously supported Osaka-Cairns route etc.

 

[Platy]

I don't think figures are public - but it is on the public record.
Ministerial Media Statements

Note that the Qld Govt has previously supported Osaka-Cairns route etc.

Hmmmm!

".....In a major coup for Tropical North Queensland, the Bligh Government has negotiated a deal with Jetstar that will see for the first time commercial flights connecting two of the state’s most important tourism icons..."

Someone should tell Premier Bligh and Minister Boyle about a certain Australian Airlines route from CNS to OOL. It's not that long ago that it was operating...