Troubled Jetstar Asia to scale down fleet

[Yada Yada]

Troubled Jetstar Asia to scale down fleet
By Scott Rochfort
April 5, 2006

QANTAS'S dream of grabbing a sizeable chunk of the low-cost Asian aviation market is looking increasingly shaky, with its 44.5 per cent owned Jetstar Asia seeking a fresh $S36 million ($31.2 million) capital injection.

The troubled Singapore airline is also looking to cut back its fleet of eight A320s to six by the end of the year in order to rein in its ballooning losses.

Singapore's Straits Times newspaper reported that Jetstar Asia's holding company, Orangestar Investment Holdings, sent a note to its shareholders proposing the capital-raising. The airline's other key shareholder includes the Singapore Government's investment arm, Temasek Holdings.

The note cited the airline's inability to gain landing rights into key markets and the "aggressive competitive landscape with new entrants and capacity growth".

More

 

[JohnK]

Not surprised at all. I am not too sure there are many people, apart from Geoff, who seriously thought that Jetstar Asia was going to be a success in that cut-throat market.

I hope Jetstar International falls down the same drain!

 

[oz_mark]

While I understand your sentiment, I actually do think Jetstar International has got a shot at being successful.

 

[serfty]

While I understand your sentiment, I actually do think Jetstar International has got a shot at being successful.

Certainly; by using the same method they did with deathstar oz ... replacing existing Qantas routes. MEL-OOL anyone?

 

[markis10]

i would fly Jetstar Asia if I could get lounge access, it is for this reason I changed a recent trip to a day earlier so that I could take the CX flight instead!

 

[clifford]

Pity really.

Jetstar Asia is actually one of the better Asian LCC's.

 

[aus_flyer]

Blind Freddy could see this was going to happen.