Fares may fall as Bali gets 787 nod

Fares may fall as Bali gets 787 nod
By admin


Jetstar has claimed it will pass on the cost saving benefits of the Boeing 787 to passengers as Melbourne to Bali was named as the first international route for the aircraft.

The first of 14 Dreamliners earmarked for Jetstar touched down in Melbourne yesterday lunchtime, ending a torturous delivery saga for Boeing and Qantas.

Jetstar was originally due to begin receiving the 787-8s in August 2008 – five years ago.

Jetstar Australia and New Zealand chief executive David Hall said it was a time to look ahead, not ponder the catalogue of problems encountered by Boeing.

Speaking to Travel Today shortly before the 787 landed, Hall said: “We always saw the 787 as a game changing aircraft and new generation aircraft will always have things that need to be worked through.

“Qantas has a long history with Boeing. They have tremendous credentials. The aircraft is safe, we are very satisfied about that, and we’ve had lots of dialogue with Boeing.

“Safety is our first priority and we wouldn’t be bringing the 787 in if we were at all concerned. We are delighted to have them. It’s about looking forward, not back.”

The aircraft will offer a “great customer proposition”, he said, with 65% larger windows, a better cabin atmosphere to reduce jetlag and technology to minimise turbulence. Inflight entertainment in every seat will be available “gate to gate”.

The aircraft also burns 20% less fuel – the flight between Honolulu and Melbourne saved 8000 tonnes of fuel – which will lower costs and potentially lead to cheaper fares, Hall said.

“Lower fuel burn and engineering efficiencies that come with a new generation aircraft will keep our costs low and we’ll certainly pass that on to customers in the form of lower fares,” he said. “There will be a downward pressure on fares. That will further stimulate travel and get more people travelling and that is what we are all about.”

Jetstar Group chief executive, Jayne Hrdlicka, who was on the delivery flight from Seattle to Melbourne via Hawaii with Qantas chief Alan Joyce, described the 787 as an "early Christmas present" to those heading to Bali from December 18, the date of its international launch.

She said the quietness of the aircraft, which carries 314 economy and 21 business class passengers, was among the most noticeable aspects of the 787.

"We weren't sure the engines were on when we were taxiing down the runway," Hrdlicka joked.

Jetstar’s 787 will initially serve the domestic market, with flights from Melbourne to the Gold Coast and Cairns, starting on November 13, before switching to international duties.

Two further 787s are expected to arrive early next year with Phuket, Japan, Hawaii and Singapore among the likely destinations. The remaining 11 787s will be delivered by the end of 2015.

“This is only the beginning, the journey has just begun and we have a world of opportunity,” Hall said.

The arrival of the 787 will see Jetstar’s fleet of 10 A330 aircraft transferred to Qantas following a cabin refit.

They will replace Qantas’s ageing 767s by mid-2015.

Meanwhile, Hall described the domestic market as “tough, certainly competitive, but good”.

Jetstar will continue to protect its markets and raise capacity if necessary, he said.

“It’s hard to know what our competitors will do in terms of capacity but we will respond to any capacity increases and maintain our competitive position,” he told Travel Today.

“It’s incredibly competitive but we welcome that because it keeps us on top of our game. Competition? Bring it on, I say.”

Pictured in front of the 787 in Melbourne yesterday: Qantas chief executive Alan Joyce, Jetstar Group CEO Jayne Hrdlicka and Jetstar Australia and New Zealand CEO David Hall.

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