Jetstar prepares to take off on trans-Tasman route

Mandi Zonneveldt

25may05

JETSTAR chief Alan Joyce has confirmed the low-cost carrier will fly to New Zealand before the end of the year.

Mr Joyce said details of the new service, including its start date and pricing, would be released in August, but confirmed it would concentrate on the main leisure routes between Australia and New Zealand.

The trans-Tasman route is one of the most competitive in the Pacific region, but Mr Joyce said Jetstar would not be nudging out parent company Qantas.

``Jetstar sees itself as complementing Qantas`s significant operational presence on the Trans-Tasman,`` he told the National Aviation Press Club yesterday. ``We think we can make it work and do the right thing by Qantas as well.``

Jetstar is also eyeing possible short-haul routes to Asia by utilising synergies offered by a link-up with JetstarAsia, the low-cost Singapore-based airline Qantas is due to start up this year.

``There are a lot of potential synergies for, at some time in the future, linking over. But there are no immediate plans at this stage,`` Mr Joyce said.

He said Jetstar`s normal conditions, such as 30-minute check-in closure and the need for connecting passengers to transfer their baggage, were likely to apply to its international services.

Speaking on the eve of the airline`s first anniversary, Mr Joyce said Jetstar would also launch its in-flight entertainment system before the end of the month. The digEplayer will offer movies, sitcoms, audio tracks and music videos.

Mr Joyce said passengers would be able to rent the portable unit for about $10 on longer flights, with a reduced fee on short-haul services.

``The user-pays philosophy ensures that while Jetstar is now providing more choice for customers, launching digEplayer will not increase the cost of our fares,`` he said.

While Jetstar competitor Virgin Blue posted a 12.9 per cent annual profit fall last week, Mr Joyce said his airline would make a positive full-year contribution.

Jetstar delivered first-half earnings before interest and tax of $19 million.

Mr Joyce said he would continue driving down costs in the second year of operation to offset rising fuel charges.

He said Jetstar was benefiting from Qantas`s fuel hedging strategy but it was not enough.

The price of crude oil was yesterday trading near $US49 a barrel – and Singapore jet fuel about $US60.

``It`s a real issue going forward,`` Mr Joyce said.

Qantas shares closed 1¢ lower at $3.32.