Qantas 2006 Annual Report Download - page 21

Jetstar’s focus on offering
the lowest fares has opened air travel
to more people
Since its launch in May 2004, Jetstar has achieved a 14 per cent
share of the Australian domestic market, grown the leisure travel
sector and carried more than 10 million passengers.
Jetstar continued the growth of its network operations, boosting
services from just over 600 a week when the airline commenced
operations in 2004 to more than 1,000 fl ights a week.
The value-based carrier offers services to 21 destinations – 20 in
Australia and Christchurch in New Zealand – and is continuing to
explore opportunities for further expansion in both the Australian
domestic and New Zealand markets.
Fares for Jetstar’s long haul international services went on sale
in July 2006 in advance of the airline’s launch of fl ights to
destinations in South East Asia, Japan and the Pacifi c in November
2006, subject to regulatory approval. Jetstar’s low-fare
international services will be grown aggressively over the next
three years, concentrating primarily on leisure markets.
Network Developments
• International: Jetstar launched its fi rst international services with
fl ights to Christchurch, New Zealand, in December 2005 and now
operates 56 fl ights a week between Christchurch and Sydney,
Melbourne and Brisbane and on the newly established route
of Christchurch-Gold Coast.
• Domestic: Since June 2006, Jetstar has operated a single fl eet
of 24 A320s – the youngest domestic fl eet in Australia. The
transition from 125-seat B717 aircraft to 177-seat A320 aircraft
has resulted in increased capacity in many regional markets
such as Newcastle, where Jetstar’s capacity has doubled.
• Jetstar entered a number of new markets, including:
• the Northern Territory in May 2006 (offering non-stop fl ights
from Darwin to Adelaide, Brisbane and Melbourne);
• Western Australia in March 2006 (daily fl ights between Perth
and Melbourne Avalon);
• northern New South Wales in July 2005 (daily fl ights between
both Melbourne and Sydney and Ballina Byron);
• Fraser Coast, also in July 2005 (four services each week between
Sydney and Hervey Bay); and
• Townsville in October 2005 (services from Brisbane, Melbourne
– a new route for the Qantas Group – and Sydney).
Five million fares – or 50 per cent of all Jetstar tickets – have been sold for $100
or less. Jetstar has made domestic leisure travel more affordable and aims to do
the same overseas with the launch of international operations in November 2006.
“Jetstar has created 1,300 new jobs since
2004 and will add a further 550 positions
by mid-2007, with the expansion of
international operations. Within fi ve
years, Jetstar will operate a fl eet of 60
narrow and wide body aircraft across its
domestic and international networks.”
Alan Joyce, Chief Executive Officer Jetstar
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Qantas Annual Report 2006