|Quoting koruman (Reply 40):|
I love the picture of the circles showing Jetstar's Asian dominance. Footprint even.
Jetstar Pacific is a basketcase and has been converted into a de facto division of Vietnam Airlines.
Jetstar Asia is just about solvent.
Jetstar Hong Kong will have three aircraft and maximum capital of $99 million over three years.
This start-up does not even represent a toe in the water. It's a miniscule start-up as part of a brand which hasn't got significant market share anywhere outside Australia.
Jetstar Pacific, and it's status as a division of Vietnam Airlines certainly presents some opportunities for QF to participate in the growth of the Vietnamese market. Don't forget it's planned to grow to 15 A320's.
Jetstar Asia, is not supposedly cash flow positive and profitable. That's a pretty good out come in what is a very competitive market and is a testament to the Singaporean Management of JQ Asia.
So sure the Jetstar brand doesn't have significant market share outside of Australia yet, but then you wouldn't expect it to. With Jetstar Japan in the building phases, and no doubt it has Korea, China, Phillipines, Taiwan etc on the radar, Jetstar Pacific on the mend, Jetsta Asia profitable and growing and a strong position in Australia and New Zealand the QF strategy of having Jetstar circle the Asia Pacific to grow the LCC market appears to be coming t fruition.
|Quoting qf002 (Reply 44):|
But then, CX doesn't cooperate with anybody in OW. BA, AA, JL must all be pretty frustrated at times, but such a big Asian airline is too valuable for the alliance for anyone to suggest booting CX out.
It was said that the only reason CX joined OW was the feed that AA gives them. It certainly wasn't for co-operating with QF and BA!
Also QFs co-operation with Vietnam Airlines and now China Eastern Airlines presents some interesting opportunities. Lets say OW could move Malaysian Airlines, Vietnam Airlines and China Eastern Airlines into the OW sphere of influence. In that scenario who needs CX in OW? CX could easily then move from OW to Star without a problem. Then what happens to the Skyteam Alliance? Well SQ doesn't really co-operate with anyone in Star so if it was to move from Star to Skyteam that would certainly be interesting. It presents some pretty interesting alliance re-alignment thoughts.
|Quoting qf002 (Reply 44):|
They have added masses of capacity, most of it at QF's detriment, over the past decade. They've stepped on QF's toes by flying to cities like CNS and ADL which are generally serviced by OW partners via a QF domestic codeshare.
Actually under the current bilateral, CX and other Hong Kong Airlines are at maximum frequencies. They can't add any more unless they want to use bigger planes. The Australian and Hong Kong Government have been in negotiations about an expanded air services treaty but last year those negotiations broke down. In a nutshell the Hong Kong Government wants more capacity for CX and to allow Hong Kong Airlines to start routes to Australia. In return the Australian Government, on behalf of Qantas, has asked for expanded beyond rights through Hong Kong. The Hong Kong Government has said a flat "no" to that so the talks broke down. It is expected that negotiations will resume this year but I wouldn't expect them to get very far again.