Qantas mainline on a diet, with Jetstar getting better fed!

The Centre for Asia Pacific Aviation confirms what The Mole has said for some time in that Qantas is aggressively expanding its Jetstar and QantasLink operations, while cutting back its mainline domestic services, creating a template for the future development of its international operation.

They say that overall, domestic passenger numbers for the three units has risen a healthy 29% since May 2004  when Jetstar launched, with QantasLink’s role also blossoming, according to research conducted by the Centre, with the
carrier handling 36% more passengers than in May 204, while the Qantas mainline domestic operation has shrunk almost 10% over the same period.

Jetstar now accounts for 27% of the three units’ combined domestic traffic.

Jetstar recently took over the Cairns-Darwin-Singapore route from Qantas and will replace the former Australian Airlines, services to Nagoya and Osaka in 2007 in a move expected to save Qantas USD31 million annually.

Do not be fooled though, because, interestingly the 767’s operated on the route and other former AA routes are actually still owned by AA which has not closed down at all, with the aircraft having been put in Qantas livery, wet leased to Qantas from Australian Airlines, with former AA crews working in Qantas mainline uniforms, but being paid what they were being paid at AA – interesting, the plot thickens!

The Centre says, “Jetstar could also play an expanded role on Tasman routes to New Zealand, after the withdrawal of the Qantas-Air New Zealand codeshare application,” according to Peter Harbison, the Centre’s Executive Chairman.

The Centre also says, that besides taking over marginal routes from its parent, Jetstar is on track to launch Melbourne-Bangkok, Sydney-Phuket and Sydney-Vietnam services in the next two weeks, with Melbourne/Sydney-Denpasar services starting in early Dec 2006 and services to Honolulu later that month.

“Airports in Australia and the region will be seeing more orange Jetstar tails than red Qantas ones in the years ahead,” concluded Mr Harbison.

The Mole is of the opinion that this will go even further and ultimately Qantas will only operate both internationally and domestically on the most profitable and high yield routes, probably those that by the time the Boeing 777 200LR is available, will be the non-stop ultra long haul routes, for example Sydney to some top European business destinations and also say Sydney to New York, that is the routes in demand with business travellers, who are willing to pay a premium price.

The Mole also thinks that the predominantly leisure and one stop routes will become the domain of Jetstar and even that in due course Qantas 747’s and 380’s will be flying in Jetstar colours!

How’s that for crystal ball gazing!?

Report by the Mole with information from the Centre for Asia Pacific Aviation