JQ Approved for HNL flights

[serfty]

Consider the $105M in liq. Damages that QF reported from Airbus due to the late arrival of the A380.

I'm sure Qantas were planning to employ freed up skybed aircraft on this route. Maybe the 787's will be needed there ...

 

[NM]

Jetstar press release today says that QF will continue it's 3 services to week to HNL with Jetstar services being in addition to this.

Despite this I am sure QF will be reviewing the service in the near future!

NM, I am sure you are correct but the cost of maintaining the 300's is apparently getting higher all the time. Also the very fact that they don't have a skybed will eventually be a problem when AC introduce their flatbed. If Qantas don't want to lose most of their premium trade to AC, and with Jetstar coming into the market they surely will need to upgrade their service. Remember also that AC scheduled a new twice weekly service MEL-HNL just before 9/11 and then with the slump that followed never went ahead with it. An AC source told me last year that they are still considering this route in the future. Imagine with A340's and their new flatbed...here's hoping. (probably dreaming:!: )

QF plans to retire the 747-300s when they receive sufficient A380 deliveries. So the retirement of the 747-300s has been delayed longer than originally planned.

I think AC would prefer to operate non-stop to Australia and not have to use HNL as a tech stop, but their A340-300 aircraft cannot make the non-stop journey in both directions so they have retained the HNL stopover.

I expect the 787 fits into QF's plan to upgrade the business class service to HNL. However, I also suspect a significant component of the demand for business class on that route is from low-revenue ATW tickets and FF awards. So competition from other airlines is not going to be a driving force in the business class product offered.

 

[maninblack]

NM. I essentially agree with you. Actually I think if the Jetstar service is a reasonable success then QF might dump HNL altogether sometime in 2007. It would be a shame as this is not only a historic route but will mean all of us who like to fly in Business will have really only one airline to travel on. I guess QF will do an assesment of the feasibilty of continuing their service over coming months. Certainly HNL is a popular destination for many people in the luxury market who don't want Asia and who will simply not fly Jetstars budget service with no Business class and no personal IFE but is it viable for QF? I actually think that if QF offered a real premium service with A330-300's or 787's when they arrive they would do even better. You would think that if a marginal destination like Tahiti is viable for a 3 class service on Tahiti Nui then surely HNL would be for Qantas.

 

[maninblack]

Was on the Qantas website today and they are promoting HNL over the X-mas period. Guess they want to get in and fill their seats before Jetstar launches their service. I suppose that they are committed to the route at least until next year...then we shall see. Something tells me though that they may just continue with it, after all they have kept it through thick and thin for 60 years now I am told, even when the AUD was at 50c to the USD. It is a leisure market route, but a premium one and is also part of oneworld RTW ticketing...here's hoping:!:

You never know, Jetstar may prove to be a bit of a flop on this 10 hour sector:evil:

 

[JohnK]

You never know, Jetstar may prove to be a bit of a flop on this 10 hour sector:evil:

To suggest that "Jetstar may prove to be a bit of flop on this 10 hour sector" would indicate that Jetstar have had success on other sectors.

 

[Dave Noble]

To suggest that "Jetstar may prove to be a bit of flop on this 10 hour sector" would indicate that Jetstar have had success on other sectors

from Fuel costs force job cuts as profit stalls | Aviation | The Australian

Jetstar's profit before tax came in at $11 million, after the start-up costs for its new international arm and trans-Tasman operations were factored in.

Excluding these costs, Jestar's profit would have been $25 million, down $11 million on the previous year.

I would call pre-tax profits of $11,000,000 as indicating that they are successful

Dave

 

[JohnK]

I would call pre-tax profits of $11,000,000 as indicating that they are successful

Is that why you use their service every opportunity you get? Service! Sorry. That is another thing you can never associate with Jetstar.

The guy down the road importing olives, nuts and olive oils and employing 10 workers made a bigger profit than that. Success my a**!

 

[Dave Noble]

Is that why you use their service every opportunity you get? Service! Sorry. That is another thing you can never associate with Jetstar.

And what on earth does my choice on whether to fly them or their service level have anything to do with whether they are successful? I don't fly on Singapore Airlines , but that doesn't make them unsuccessful

The guy down the road importing olives, nuts and olive oils and employing 10 workers made a bigger profit than that. Success my a**!

Again, what relevence. $11m profit given costs these days is a reasonable result ($25m if the costs of their new international operation startup costs were not counted). The fact that you may dislike them does not change whether they are successful.

Dave

 

[SeatBackForward]

Don't you just love it. JETSTAR offers cheap airfares etc...

Lets face it. Qantas, the corporation, is more than happy for regular Qantas flyers to switch over to Jetstar. Sure they may not receive as much income from the "discount" tickets. But heck the operational costs are significantly lower for each seatbum on JQ than on QF, so the company is making MORE profit by having less people fly on Qantas. Then flagging passenger numbers on QF will justify them reducing those services that JQ will cover instead.

Meanwhile, happy campers continue getting FF points and cheaper tickets..its a win-win for all..right..surely?

 

[JohnK]

Again, what relevence. $11m profit given costs these days is a reasonable result ($25m if the costs of their new international operation startup costs were not counted).

Relevance! Success is not measured on profit alone.

The fact that you may dislike them does not change whether they are successful.

And I am the only person that dislikes them? I am trying to find the glowing reports from all the happy customers that have flown Jetstar.

All I see is doom and gloom.

 

[Dave Noble]

Relevance! Success is not measured on profit alone.

Umm... For a company , it's success is whether it makes a profit

Dave

 

[serfty]

Merely to make a profit is not necessarily an indication of success.

In raw terms, levels of Investment need to be taken into account. (not to mention turnover)

i.e. 1M PA profit on a 5M investment would indicate success; 2M profit on a 50M not so much and 3M profit on a 200M investment would be called a failure ...

At this point in time it's a bit diffucult to locate an exact figure on the total investment Qantas have put into JQ.

 

[Dave Noble]

Merely to make a profit is not necessarily an indication of success.

True , but it is magnitude of profit which is the determining factor

Given the length of time they have been operating and that they are still expanding, $25M would seem to be reasonably successful so far. Whether they will continue and build on success is to be seen

Whether or not some people like or dislike the service levels does not determine their success. As far as glowing reports go, I know several people who have flown on them and viewed it as ok and would have no issues reusing them and others that have not liked them ( mainly due to being stuck in AVV due to fog )

Personally I would avoid JQ domestically, though , if the price is right, would consider their Star Class internationally

Dave

 

[maninblack]

We all have different service expectations. If I am travelling on holidays, then it begins for me the moment I lock the front door and I want a pleasant comfortable experience, I want to stretch out and relax which means a genuine Business class cabin. Star class which looks to be about equivalent to QF domestic business looks fine for a short trip like Bali but I would not use it long haul, It certainly looks inferior to BA World traveler plus. MEL-BKK for March is $1700 return in Star class whereas BA WTPlus is $1500. Economy JQ Jetflex $1070 which is more than QF BA SQ, and of course Thai which are full service airlines with personal IFE etc. Only the limited and restricted Jetsaver fares are genuinely cheap.

And for longer flights like BKK, HNL, Japan etc personal IFE is a must, especially in economy and with kids:!:

Jetstar ain't for me I'm afraid.

 

[JohnK]

Umm... For a company , it's success is whether it makes a profit

Are you kidding? I think it has been answered adequately by serfty.

What I don't understand is your stuborness in defending an airline that you will never fly with and said airline could not care less, and will never care, for it's customer base. Or is it that you just love to argue for arguments sake?

You cannot measure success by profit alone.

 

[Dave Noble]

Are you kidding? I think it has been answered adequately by serfty.

What I don't understand is your stuborness in defending an airline that you will never fly with and said airline could not care less, and will never care, for it's customer base. Or is it that you just love to argue for arguments sake?

You cannot measure success by profit alone.

Although I do not have a desire to fly on it does not mean that it is unsuccesful. All Serfty pointed out was that just making a profit in itself does not imply success, the profit has to be commensurate with the outlay

Profits => success. the only issue is at what magnitude of profit do you class a business a success.

I see no other way at all to measure success of a company other than how much it has made and how much it predicts to make


As far as arguing, you are the one that made the facile statement

"To suggest that "Jetstar may prove to be a bit of flop on this 10 hour sector" would indicate that Jetstar have had success on other sectors"

Whether I like travelling on them, I would say that they seem to be successful. Can you justify the implied claim that they are unsuccessful?

Dave

 

[JohnK]

As far as arguing, you are the one that made the facile statement

"To suggest that "Jetstar may prove to be a bit of flop on this 10 hour sector" would indicate that Jetstar have had success on other sectors"

It is an opinion, right or wrong is irrelevant and it is not your place in society to correct me. You could have left it alone, yet you chose to flame me again. You do this every opportunity you get. I wish I was the only one but I am not. You have developed a nasty habit there. Aircrash1 is a recent victim of yours and most likely will never hear from him/her again.

Funny isn't it. You may get your wish soon and have this board all to yourself.

Whether I like travelling on them, I would say that they seem to be successful. Can you justify the implied claim that they are unsuccessful?

Your only justification for success is profit alone. I would say that they are not successful. Who is right? You or me?

I am a contractor for a company that makes hundreds of millions of dollars profit every year. You know what? They do not consider themselves successful. Why? Because they constantly review customer feedback and are always trying to improve their business practices. To them just one negative feedback is failure. Part of their business is service related. Jetstar provides a service!!!! Would not call them a success. They have failed miserably.

 

[N860CR]

Originally Posted by The Australian
Jetstar's profit before tax came in at $11 million, after the start-up costs for its new international arm and trans-Tasman operations were factored in.

Excluding these costs, Jestar's profit would have been $25 million, down $11 million on the previous year.

Considering their closest competitor just posted profits up 12%, I'd say that JQ posting a drop in profits of $11M isn't much of a statement of success.

 

[Dave Noble]

Considering their closest competitor just posted profits up 12%, I'd say that JQ posting a drop in profits of $11M isn't much of a statement of success.

True their profits are not great yet, but they are improving , whilst Qantas profits plumeted 30%

From Airline Travel News - Qantas annual profits slump by 30% . Admittedly QFs profits are a hell of a lot more than JQs, but JQ does seem to be doing fairly well considering the market

"Jetstar reported a PBT of $11 million, after $4 million of start-up costs for trans-Tasman operations and $10 million in costs associated with the launch and set-up of Jetstar International. Excluding these costs, Jetstar PBT was $25 million, which was a decline of $11 million on the prior year reflecting the impact of fuel price rises and higher operating lease charges following the transition to an all-A320 fleet.

Passenger revenue improved by 40.2 per cent. Yield (excluding foreign exchange rate movements) declined by 4.8 per cent, which is a solid performance given the significant capacity increase. Seat factor improved by 1.6 points to 74.0 per cent.

Operating profit (excluding Jetstar international launch and set up costs) improved by 43.6 per cent, which was in line with capacity growth of 44.3 per cent, reflecting the expansion of the Jetstar network in both the domestic and international markets as the airline progressively took delivery of its fleet of 23 A320s."


Dave

 

[oz_mark]

Although I do not have a desire to fly on it does not mean that it is unsuccesful. All Serfty pointed out was that just making a profit in itself does not imply success, the profit has to be commensurate with the outlay

Profits => success. the only issue is at what magnitude of profit do you class a business a success.

I see no other way at all to measure success of a company other than how much it has made and how much it predicts to make

I have no particular knowledge of what goes on inisde the company, but it seems to me that Qantas would have set a number of criteria to be met in order to guage the success of Jetstar. I think it would be simplistic to suggest that the only measure is Profit. Oc course, to use as outsiders, we somewhat just have to accpet that according to the indicators Qantas put in place it is considered a success.