Qantas muscles in on China market

Qantas muscles in on China market
By admin


Qantas will make a major play for the rapidly expanding Chinese middle class with the launch of Jetstar Hong Kong, a joint venture with China Eastern Airlines.

Services are slated to take to the skies in mid-2013 with a fleet of three Airbus A320s, to rise to 18 by 2015. Markets served will include Greater China, Japan, South Korea and South East Asia
Jetstar chief executive Bruce Buchanan described the deal as a “unique opportunity” for the group to capitalise on the potential of the Chinese market where penetration of low cost carriers was currently less than 5%.
He predicted passengers would benefit from increased competition with Hong Kong’s first low cost carrier offering fares 50% lower than full service carriers.
Hong Kong had, until now, seen “very slow growth rates”, he said, anticipating that increased competition would bring it in line with regional averages.
The Chinese middle class currently numbers 300 million, expected to rise to 450 million by the end of the decade.
The 50% stake marks an investment of US$99 million by Qantas over three years, with Buchanan keen to stress the new project would not see Australian jobs lost overseas.
“The benefits of exporting the brand all flow back into Australia which is great for the general economy,” he said, adding that Jetstar’s other airlines also stood to benefit from improved connectivity.
Meanwhile, Qantas chief executive Alan Joyce denied it would work with China Eastern on a second venture to create a premium airline in the region, although he said the group was “still exploring” options in Singapore and Malaysia.
It was also “keeping an eye out” for any further opportunities in Asia.
“We have got the capability to do much more than we’re doing today,” Joyce claimed.
Tourism Australia welcomed the alliance with China Eastern as “further proof of the growth potential of China,” predicting benefits for inbound tourism.

Latest News

  • Aviation

Low-cost Indian carrier SpiceJet continues to burn cash

It’s not just low-cost Australian carriers that are facing hardship. SpiceJet, India’s version of Bonza, recently announced a 72 per cent reduction in its net loss versus last year. But, despite this improvement, the airline has posted losses for six straight years. But it has secured board approval to raise up to INR 30 billion […]

  • Attractions

SAKA Museum recognised in TIME magazine’s World’s Greatest Places 2024

AYANA Resort Bali’s newly-opened cultural and events centre, SAKA Museum has been recognised in TIME magazine’s World’s Greatest Places list for 2024. Part of AYANA Bali’s resort destination, the museum integrates Bali’s rich history with state-of-the-art facilities, making it the centrepiece for the island’s spiritual and cultural heritage. TIME magazine’s inclusion of SAKA Museum in […]

  • Cruise

Silversea taps Barbara Biffi as senior vice president for global sales

Ultra-luxury and expedition cruise travel brand, Silverseas, has announced Barbara Biffi as its new senior vice president of global sales. Biffi joined the company in 2007, holding numerous positions and gaining a deep understanding of the brand, the preferences of its guests and its strategic goals, the company said. An Italian national with a wealth […]

  • Technology
  • Travel Agents

Amadeus welcomes FCM Travel as new reseller partner of Cytric Easy

Cytric Easy, the travel management tool embedded in Microsoft Teams, is to be integrated into FCM Travel portfolio. Amadeus and FCM Travel have extended their Cytric distribution agreement to include Cytric Easy. With this new agreement, global travel management company FCM Travel, becomes a reseller of the innovative travel management collaboration solution embedded into Microsoft […]