What's In A Name?
Australian flagship
carrier Qantas says its new low cost domestic airline will be
called Jetstar. Qantas CEO Geoff Dixon, said the airline would use
new Airbus A320 aircraft from June next year and would eventually
have an all-A320 fleet.
"Jetstar will fly new A320 aircraft featuring 177 leather seats
and an inflight audio entertainment system," Dixon said.
"The Australian domestic leisure market is growing rapidly and
now represents over 60 percent of all passengers. Jetstar will
concentrate on growing this market with value fares while opening
up new destinations."
Dixon said the Qantas Board had last week approved a number of
initiatives for Qantas' domestic operations, including the:
- selection of Impulse Airlines as the operating entity for the
low cost carrier
- placement of an initial order for 23 A320s for the low cost
carrier
- reorganization of the full service Qantas domestic airline into
a two-class jet operation on all services, using only two aircraft
types -- Boeing 737s and 767s
- acquisition of an additional five Boeing 737-800 aircraft for
the full service domestic airline to replace the airline's last
737-300s and further modernize the fleet.
Dixon said using Impulse as the operating entity and with new
aircraft, new slimline seats, a new booking system and innovative
products, Qantas was confident Jetstar would be the lowest cost
operator in Australia.
The start-up of Jetstar would add to the overall strength of the
Qantas flying product, which currently comprised:
- Qantas International, offering 540 services each week to 77
destinations in 33 countries
- Australian Airlines, the full service international leisure
carrier, offering 50 flights each week to 11 destinations in six
countries
- Qantas Domestic, offering more than 2,500 flights each
week
- Qantaslink, the regional airline, offering more than 2,500
flights each week.
Dixon said the purchase of the A320s and 737-800s would not
stress the company's balance sheet.
"We will remain within our desired gearing level," he said. "The
domestic market is strong and the international market is returning
quickly from the effects of SARS and the war in Iraq. All our
businesses are profitable."
Jetstar will begin selling seats in February 2004 and start
flying in May 2004, using 14 Boeing 717s (shown below) currently
operated by Impulse Airlines under the QantasLink brand. The first
Airbus A320 will be delivered in June 2004 and Jetstar will, over
time, move to an all A320 fleet.
"While the initial order is for 23 A320s, we can acquire more of
these aircraft as Jetstar grows. As we said in October, Jetstar
will operate a minimum of 23 aircraft by mid-2005.
"The A320 family is used by two of the world's most successful
low cost carriers, Jetblue and EasyJet, and it has an outstanding
track record, including excellent fuel efficiency," said Dixon.
The airline's route network and fare structure will be announced
in January 2004.
Dixon said the Board's
approval for the acquisition of an additional five Boeing 737-800s
highlighted the full service airline's strategy of simplifying its
fleet to include only two aircraft types -- Boeing 737s and
767s.
The new 737-800s, to be delivered next year, will replace the
airline's last 737-300s. The 737-800 is more fuel efficient and
cost effective than the 737-300 and it offers more spacious cabins,
more headroom and larger windows.
"Qantas has taken delivery of 20 737-800s since February 2002
and another three of these aircraft will join the fleet by the
middle of next year," Dixon said.
"The additional five aircraft approved by the Board will take
the total Qantas 737-800 fleet to 28. This will result in a large,
uniform and more modern fleet for the full service airline and this
will deliver further improvements to utilization, reliability and
on-time performance."
Dixon said the full service Qantas domestic airline would
continue to offer award-winning inflight entertainment -- including
video news, movies, sitcoms and sport shows as well as up to 10
channels of audio programs -- and the popular Frequent Flyer
program.
Dixon said Qantas would maintain its ongoing investment in
domestic product, both in the air and on the ground, including the
extensive network of Qantas Club lounges.
Business and leisure travelers using the full service airline
would continue to have access to an extensive range of discount
fares. The simpler domestic fare structure introduced in June had
allowed travelers to mix and match one way fares to combine
affordability and flexibility to better suit individual needs.