Jetstar Asia Airways
Encyclopedia
Jetstar Asia Airways Private Limited (Chinese: 捷星亚洲航空公司), operating as Jetstar Asia, is a low-cost airline
headquartered in Singapore
. It is the Asian offshoot of Qantas
Jetstar Airways
. It operates services to regional destinations in Southeast Asia
, Australia
, China
and Japan
from its main base at Singapore Changi Airport
.
On 16 April 2008, the company announced that it had achieved profitability for the year ended 31 March 2008, with an increase of 20 per cent in the number of passengers carried and a passenger load factor of over 75 per cent, an increase of 4 per cent over the previous year. Jetstar Asia carried 2.7 million passengers during the year to 30 June 2011, an increase of 18% on the previous year, and saw Revenue passenger kilometres
increase by 39.7%, as long-haul flights from Singapore to Auckland and Melbourne using Airbus A330
aircraft were launched.
(Private) Limited (19 per cent). It received its Air Operator's Certificate
from the Singapore government on 19 November 2004.
Due to its belated entry into the market, the airline differentiated itself from its competitors by flying further; anywhere within a five-hour radius from Singapore while its competitors flew to destinations within a four-hour radius from Singapore. The airline announced seven routes to Shanghai
, Hong Kong
, Taipei
, Pattaya
, Jakarta
, Surabaya
and Manila
; the most ambitious start-up plan compared to any of its Asian rivals, which would have given it the widest international coverage.
Online ticketing commenced at 0800 hours (8GMT) on 7 December 2004, a day after the first three routings and their promotional prices were announced, namely S$48 (HK$228) to Hong Kong, S$88 (NT1788) to Taipei and S$28 (Bht725) to Pattaya on a one-way ticket for all seats in the first week of operations as each routing was launched. Flights to Manila began in 2005. As part of its differentiation, Jetstar flew to Ninoy Aquino International Airport
instead of the cheaper Diosdado Macapagal International Airport
in Angeles City
.
However, services to certain announced destinations (Shanghai, Jakarta and Surabaya) could not be started. The non-start of flights to Shanghai was because China's aviation authority did not allow foreign budget airlines flying to both Shanghai and Beijing
airports. Flights to Indonesia were not allowed as Indonesia's government embarked a policy of protectionism. Existing flights by low-fare airlines, such as Valuair
's flights to Jakarta and Denpasar
as well as Tiger Airways
' service to Padang
, were not revoked.
Despite facing a difficult market, Jetstar Asia took delivery of a fifth aircraft in 2005 and sought approval for new routes. Jetstar planned to lease the aircraft from Atlasjet Airways, but the aircraft was later withdrawn from the lease arrangement. Discussions were held with Qantas to source additional aircraft. In 2005, the budget carrier began seeking approval from Cambodian authorities to fly to Phnom Penh
and Siem Reap
, and was eventually granted rights.
Hot on the heels of Tiger Airways' success on the Phuket
route, Jetstar Asia announced four-times-weekly flights to Phuket. The flight commenced on 25 October 2005, however due to inconsistent demand and better opportunities elsewhere, Jetstar announced the suspension of flights to Phuket on 27 March 2008.
By the end of December, it was clear that Jetstar Asia was bleeding cash and its investors were struggling to finance the airline. On 2 December 2005, Jetstar Asia announced that its chief executive officer
(CEO), Ken Ryan, was stepping down to return to Australia. Mr Ryan would take on a new management role at Orange Star's majority shareholder Qantas and was replaced at the helm by Neil Thompson. On 9 February 2006, Jetstar Asia appointed Singaporean Chong Phit Lian as the airline's new CEO, replacing interim CEO Neil Thompson.
On 26 July 2006, Qantas decided to re-position both of its Jetstar ventures in Australia and Singapore as a single brand. This was followed by a launch of Jetstar's long-haul operations to six destinations in South-east Asia from Australia.
On 15 September 2006, Jetstar Asia became the first international airline to land at Bangkok's Suvarnabhumi Airport
.
On 16 April 2008, Jetstar Asia announced that it had reported a profit ahead of schedule, and ahead of local rival Tiger Airways
. Both Jetstar Asia and sister airline Valuair saw a 20 per cent increase in revenue, a 4 per cent rise in passenger load and an overall 20 per cent jump in passenger carriage for the year ending March 2008. The airline's CEO attributes its success to better brand awareness as well as an increased utilisation of aircraft, growing revenue and a broadening of the earning base.
, another Singapore-based airline, merged on 24 July 2005, in the first major consolidation of South-east Asia's crowded and competitive low-cost airline industry. The airlines released a joint statement saying they would continue to operate their normal routes under their own brands in the meantime, with little or no change to the service offered by either airline. Qantas CEO and Jetstar Asia chairman Geoff Dixon chaired the new company. Jetstar Asia CEO Chong Phit Lian was appointed as the chief executive of both airlines. The new company was due to receive a cash injection of more than 50 million Singapore dollars in fresh capital into the new entity, largely to be provided by Qantas. Shareholders of Valuair, including airline-industry veteran Lim Chin Beng, Malaysia's Star Cruises and Asiatravel.com, have now become minority shareholders in the merged company, Orange Star
. Qantas owns 42.5 per cent of both airlines after the merger.
. Dennis Khoo is the other shareholder in Newstar, and is a long-time regional partner of Qantas.
Jetstar Asia and Valuair have have formed a code share partnership with parent Qantas, effectively making them the regional feeder lines for the Australian carrier, similar to the role SilkAir plays for Singapore Airlines.
With the code share arrangement Jetstar Asia/Valuair will effectively and seamlessly connect Qantas' customers, through their common Singapore Changi Airport hub, to their extensive and growing Asia Pacific network.
programme called JetCafe. On flights operated by Jetstar Asia, passengers may only consume food and drinks purchased on board unless they have special medical or dietary needs.
Low-cost carrier
A low-cost carrier or low-cost airline is an airline that generally has lower fares and fewer comforts...
headquartered in Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
. It is the Asian offshoot of Qantas
Qantas
Qantas Airways Limited is the flag carrier of Australia. The name was originally "QANTAS", an initialism for "Queensland and Northern Territory Aerial Services". Nicknamed "The Flying Kangaroo", the airline is based in Sydney, with its main hub at Sydney Airport...
Jetstar Airways
Jetstar Airways
Jetstar Airways is an Australian low-cost airline headquartered in Melbourne, Australia. It is a subsidiary of Qantas, created in response to the threat posed by low-cost airline Virgin Blue...
. It operates services to regional destinations in Southeast Asia
Southeast Asia
Southeast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
and Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
from its main base at Singapore Changi Airport
Singapore Changi Airport
Singapore Changi Airport , Changi International Airport, or simply Changi Airport, is the main airport in Singapore. A major aviation hub in Southeast Asia, it is about north-east from the commercial centre in Changi, on a site....
.
On 16 April 2008, the company announced that it had achieved profitability for the year ended 31 March 2008, with an increase of 20 per cent in the number of passengers carried and a passenger load factor of over 75 per cent, an increase of 4 per cent over the previous year. Jetstar Asia carried 2.7 million passengers during the year to 30 June 2011, an increase of 18% on the previous year, and saw Revenue passenger kilometres
Revenue passenger mile
Revenue passenger miles and Revenue passenger kilometers are measures of traffic for an airline flight, bus, or train calculated by multiplying the number of revenue-paying passengers aboard the vehicle by the distance traveled...
increase by 39.7%, as long-haul flights from Singapore to Auckland and Melbourne using Airbus A330
Airbus A330
The Airbus A330 is a wide-body twin-engine jet airliner made by Airbus, a division of EADS. Versions of the A330 have a range of and can accommodate up to 335 passengers in a two-class layout or carry of cargo....
aircraft were launched.
History
Jetstar Asia was launched in 2004 as a partnership between Qantas, holding a 49 per cent stake in the airline, Singaporean businessmen Tony Chew (22 per cent) and FF Wong (10 per cent) and the Singapore government's investment company, Temasek HoldingsTemasek Holdings
Temasek Holdings is an investment company owned by the government of Singapore. With an international staff of 380 people, it manages a portfolio of about S$193 billion at end of March 2011, focused primarily in Asia...
(Private) Limited (19 per cent). It received its Air Operator's Certificate
Air Operator's Certificate
An air operator's certificate is the approval granted from a national aviation authority to an aircraft operator to allow it to use aircraft for commercial purposes. This requires the operator to have personnel, assets and system in place to ensure the safety of its employees and the general public...
from the Singapore government on 19 November 2004.
Due to its belated entry into the market, the airline differentiated itself from its competitors by flying further; anywhere within a five-hour radius from Singapore while its competitors flew to destinations within a four-hour radius from Singapore. The airline announced seven routes to Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, Taipei
Taipei
Taipei City is the capital of the Republic of China and the central city of the largest metropolitan area of Taiwan. Situated at the northern tip of the island, Taipei is located on the Tamsui River, and is about 25 km southwest of Keelung, its port on the Pacific Ocean...
, Pattaya
Pattaya
Pattaya is a city in Thailand, located on the east coast of the Gulf of Thailand, about 165 km southeast of Bangkok located within but not part of Amphoe Bang Lamung in the province of Chonburi....
, Jakarta
Jakarta
Jakarta is the capital and largest city of Indonesia. Officially known as the Special Capital Territory of Jakarta, it is located on the northwest coast of Java, has an area of , and a population of 9,580,000. Jakarta is the country's economic, cultural and political centre...
, Surabaya
Surabaya
Surabaya is Indonesia's second-largest city with a population of over 2.7 million , and the capital of the province of East Java...
and Manila
Manila
Manila is the capital of the Philippines. It is one of the sixteen cities forming Metro Manila.Manila is located on the eastern shores of Manila Bay and is bordered by Navotas and Caloocan to the north, Quezon City to the northeast, San Juan and Mandaluyong to the east, Makati on the southeast,...
; the most ambitious start-up plan compared to any of its Asian rivals, which would have given it the widest international coverage.
Online ticketing commenced at 0800 hours (8GMT) on 7 December 2004, a day after the first three routings and their promotional prices were announced, namely S$48 (HK$228) to Hong Kong, S$88 (NT1788) to Taipei and S$28 (Bht725) to Pattaya on a one-way ticket for all seats in the first week of operations as each routing was launched. Flights to Manila began in 2005. As part of its differentiation, Jetstar flew to Ninoy Aquino International Airport
Ninoy Aquino International Airport
The Ninoy Aquino International Airport or NAIA , also known as Manila International Airport , is the airport serving the general area of Manila and its surrounding metropolitan area...
instead of the cheaper Diosdado Macapagal International Airport
Diosdado Macapagal International Airport
Diosdado Macapagal International Airport , also called Clark International Airport , is the main airport serving the immediate vicinity of the Clark Freeport Zone and the general area of Angeles City in the Philippines...
in Angeles City
Angeles City
The City of Angeles , located within the province of Pampanga in the Philippines, is locally classified as a first-class, highly-urbanized city. Its name is derived from El Pueblo de los Ángeles in honor of its patron saints, Los Santos Ángeles de los Custodios , and the name of its founder, Don...
.
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
airports. Flights to Indonesia were not allowed as Indonesia's government embarked a policy of protectionism. Existing flights by low-fare airlines, such as Valuair
Valuair
Valuair Limited is a Singapore-based low-cost carrier. It was launched in 2004, offering initial services to Bangkok and Hong Kong. It differentiates itself from other low-cost carriers in that it offers frills such as a baggage allowance of over 20 kg, in-flight food, allocated seats, and...
's flights to Jakarta and Denpasar
Denpasar
Denpasar is the capital city of the province of Bali, Indonesia. It has a rapidly expanding population of 788,445 in 2010, up from 533,252 in the previous decade. It is located at .-History:...
as well as Tiger Airways
Tiger Airways
Tiger Airways Singapore Pte Ltd, operating as Tiger Airways Singapore, is a low cost airline which commenced services on 25 March 2005. It is a subsidiary of Tiger Airways Holdings, a Singapore-based company, which is owned partially by Singapore Airlines...
' service to Padang
Padang, Indonesia
Padang is the capital and largest city of West Sumatra, Indonesia. It is located on the western coast of Sumatra at . It has an area of and a population of over 833,000 people at the 2010 Census.-History:...
, were not revoked.
Despite facing a difficult market, Jetstar Asia took delivery of a fifth aircraft in 2005 and sought approval for new routes. Jetstar planned to lease the aircraft from Atlasjet Airways, but the aircraft was later withdrawn from the lease arrangement. Discussions were held with Qantas to source additional aircraft. In 2005, the budget carrier began seeking approval from Cambodian authorities to fly to Phnom Penh
Phnom Penh
Phnom Penh is the capital and largest city of Cambodia. Located on the banks of the Mekong River, Phnom Penh has been the national capital since the French colonized Cambodia, and has grown to become the nation's center of economic and industrial activities, as well as the center of security,...
and Siem Reap
Siem Reap
Siem Reap is the capital city of Siem Reap Province in northwestern Cambodia, and is the gateway to Angkor region.Siem Reap has colonial and Chinese-style architecture in the Old French Quarter, and around the Old Market...
, and was eventually granted rights.
Hot on the heels of Tiger Airways' success on the Phuket
Phuket City
Phuket is a city located in the southeast of Phuket Island, Thailand. It is the capital of the Phuket Province, covering all of the island. As of 2007 the city has a population of 75,573 people...
route, Jetstar Asia announced four-times-weekly flights to Phuket. The flight commenced on 25 October 2005, however due to inconsistent demand and better opportunities elsewhere, Jetstar announced the suspension of flights to Phuket on 27 March 2008.
By the end of December, it was clear that Jetstar Asia was bleeding cash and its investors were struggling to finance the airline. On 2 December 2005, Jetstar Asia announced that its chief executive officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
(CEO), Ken Ryan, was stepping down to return to Australia. Mr Ryan would take on a new management role at Orange Star's majority shareholder Qantas and was replaced at the helm by Neil Thompson. On 9 February 2006, Jetstar Asia appointed Singaporean Chong Phit Lian as the airline's new CEO, replacing interim CEO Neil Thompson.
On 26 July 2006, Qantas decided to re-position both of its Jetstar ventures in Australia and Singapore as a single brand. This was followed by a launch of Jetstar's long-haul operations to six destinations in South-east Asia from Australia.
On 15 September 2006, Jetstar Asia became the first international airline to land at Bangkok's Suvarnabhumi Airport
Suvarnabhumi Airport
Suvarnabhumi Airport , also known as Bangkok International Airport, is an international airport serving Bangkok, Thailand. It was officially opened for limited domestic flight service on 15 September 2006, and opened for most domestic and all international commercial flights on 28 September...
.
On 16 April 2008, Jetstar Asia announced that it had reported a profit ahead of schedule, and ahead of local rival Tiger Airways
Tiger Airways
Tiger Airways Singapore Pte Ltd, operating as Tiger Airways Singapore, is a low cost airline which commenced services on 25 March 2005. It is a subsidiary of Tiger Airways Holdings, a Singapore-based company, which is owned partially by Singapore Airlines...
. Both Jetstar Asia and sister airline Valuair saw a 20 per cent increase in revenue, a 4 per cent rise in passenger load and an overall 20 per cent jump in passenger carriage for the year ending March 2008. The airline's CEO attributes its success to better brand awareness as well as an increased utilisation of aircraft, growing revenue and a broadening of the earning base.
Merger with Valuair
Jetstar Asia and ValuairValuair
Valuair Limited is a Singapore-based low-cost carrier. It was launched in 2004, offering initial services to Bangkok and Hong Kong. It differentiates itself from other low-cost carriers in that it offers frills such as a baggage allowance of over 20 kg, in-flight food, allocated seats, and...
, another Singapore-based airline, merged on 24 July 2005, in the first major consolidation of South-east Asia's crowded and competitive low-cost airline industry. The airlines released a joint statement saying they would continue to operate their normal routes under their own brands in the meantime, with little or no change to the service offered by either airline. Qantas CEO and Jetstar Asia chairman Geoff Dixon chaired the new company. Jetstar Asia CEO Chong Phit Lian was appointed as the chief executive of both airlines. The new company was due to receive a cash injection of more than 50 million Singapore dollars in fresh capital into the new entity, largely to be provided by Qantas. Shareholders of Valuair, including airline-industry veteran Lim Chin Beng, Malaysia's Star Cruises and Asiatravel.com, have now become minority shareholders in the merged company, Orange Star
Orange Star
Orange Star is an airline holding company that was formed on July 24, 2005, when Jetstar Asia Airways and Valuair announced their merger in the light of growing competition from other low-cost carriers, price wars and rising fuel costs. Jetstar Asia Chief Executive Officer Chong Phit Lian became...
. Qantas owns 42.5 per cent of both airlines after the merger.
Ownership
Newstar, the new owner of Jetstar Asia, is itself 49 per cent owned by Australia’s Qantas. It is also the 100 per cent owner of ValuairValuair
Valuair Limited is a Singapore-based low-cost carrier. It was launched in 2004, offering initial services to Bangkok and Hong Kong. It differentiates itself from other low-cost carriers in that it offers frills such as a baggage allowance of over 20 kg, in-flight food, allocated seats, and...
. Dennis Khoo is the other shareholder in Newstar, and is a long-time regional partner of Qantas.
Jetstar, Valuair sign code share deal with Qantas
Jetstar AsiaJetstar Asia and Valuair have have formed a code share partnership with parent Qantas, effectively making them the regional feeder lines for the Australian carrier, similar to the role SilkAir plays for Singapore Airlines.
With the code share arrangement Jetstar Asia/Valuair will effectively and seamlessly connect Qantas' customers, through their common Singapore Changi Airport hub, to their extensive and growing Asia Pacific network.
Achievement & awards
- 'Best Brand Experience for Low Cost Carrier' by Ad Asia Magazine
- 'Best Low Cost Airline, Southeast Asia & Asia (2006 & 2008)' -Skytrax Award
- 'Top 10 Airlines by Passenger Carriage (2006 & 2007)' -Changi Airline Award from the Civil Aviation Authority of Singapore (CAAS)
- 'Best Asian Low-Cost Carrier (2006 & 2007)' -as well as TTG Travel Awards
Seating
Jetstar Asia aircraft feature leather seats with a seat pitch of 30 inches and passengers may purchase online seat selection and allocation.Food and beverage
Passengers may purchase food and beverage on board from the cabin crew as part of a buy on boardBuy on board
In commercial flight, buy on board is a system where food or beverages are paid for on board; often food or beverages are not included in the ticket price for certain fare classes....
programme called JetCafe. On flights operated by Jetstar Asia, passengers may only consume food and drinks purchased on board unless they have special medical or dietary needs.
Destinations
Jetstar currently offers more than 400 flights per week. Jetstar Asia flies from Singapore to 27 cities in 14 countries throughout Asia.Code-share partners
- Jetstar AirwaysJetstar AirwaysJetstar Airways is an Australian low-cost airline headquartered in Melbourne, Australia. It is a subsidiary of Qantas, created in response to the threat posed by low-cost airline Virgin Blue...
- ValuairValuairValuair Limited is a Singapore-based low-cost carrier. It was launched in 2004, offering initial services to Bangkok and Hong Kong. It differentiates itself from other low-cost carriers in that it offers frills such as a baggage allowance of over 20 kg, in-flight food, allocated seats, and...
- Jetstar Pacific AirlinesJetstar Pacific AirlinesJetstar Pacific Airlines Joint Stock Aviation Company is a low-cost airline headquartered in the Tân Bình District of Ho Chi Minh City, Vietnam. It operates domestic and international services, and charter flights. Its main base is Tan Son Nhat International Airport, the main airport in Ho Chi...
- Myanmar Airways InternationalMyanmar Airways InternationalMyanmar Airways International Co., Ltd. is the international airline of Myanmar, headquartered in Yangon. It operates scheduled international services to destinations mainly in Southeast Asia. Its main base is Yangon International Airport.- History :...
- American AirlinesAmerican AirlinesAmerican Airlines, Inc. is the world's fourth-largest airline in passenger miles transported and operating revenues. American Airlines is a subsidiary of the AMR Corporation and is headquartered in Fort Worth, Texas adjacent to its largest hub at Dallas/Fort Worth International Airport...
- Cathay PacificCathay PacificCathay Pacific is the flag carrier of Hong Kong, with its head office and main hub located at Hong Kong International Airport, although the airline's registered office is on the 33rd floor of One Pacific Place...
- FinnairFinnairFinnair Plc is the flag carrier and largest airline of Finland, with its headquarters on the grounds of Helsinki Airport in Vantaa, Finland, and its main hub at Helsinki Airport. Finnair and its subsidiaries dominate both the domestic and international air travel markets in Finland. The largest...
- Japan AirlinesJapan Airlinesis an airline headquartered in Shinagawa, Tokyo, Japan. It is the flag carrier of Japan and its main hubs are Tokyo's Narita International Airport and Tokyo International Airport , as well as Nagoya's Chūbu Centrair International Airport and Osaka's Kansai International Airport...
- Lan AirlinesLAN AirlinesLAN Airlines S.A. is an airline based in Santiago, Chile. LAN is currently positioned amongst the largest airlines in Latin America, serving Latin America, United States, the Caribbean, Oceania, and Europe. It is a member of the Oneworld airline alliance...
- QantasQantasQantas Airways Limited is the flag carrier of Australia. The name was originally "QANTAS", an initialism for "Queensland and Northern Territory Aerial Services". Nicknamed "The Flying Kangaroo", the airline is based in Sydney, with its main hub at Sydney Airport...
Fleet
As of October 2011, the Jetstar Asia Airways fleet consists of the following aircraft:| Aircraft | In Service | Orders | Passengers | Notes | ||
|---|---|---|---|---|---|---|
| J | Y | Total | ||||
| Airbus A320-200 Airbus A320 family The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001... |
15 | 0 | 0 | 180 | 180 | Short & Medium Haul |
| Airbus A330-200 | 2 | 0 | 38 | 265 | 303 | Long Haul, operated by Jetstar Airways Jetstar Airways Jetstar Airways is an Australian low-cost airline headquartered in Melbourne, Australia. It is a subsidiary of Qantas, created in response to the threat posed by low-cost airline Virgin Blue... |
| Total | 17 | 0 | ||||