Jetstar plans to start flights to regional destinations later this year in what will be a major shake-up for domestic air travel. The low cost carrier will use a fleet of five 50-seat Bombardier Q300 turbo-prop aircraft to fly to at least four regional centres initially. Those cities being considered include Hamilton, Rotorua, New Plymouth, Napier and Palmerston North in the North Island and Nelson and Invercargill in the South Island. The new flights will break Air New Zealand's stranglehold on flying large aircraft to regional centres. Air New Zealand shares plunged by close to 10 per cent this morning after the Jetstar move into the regions was tipped by the Business Herald...
Jetstar made the announcement in Auckland today with Prime Minister and tourism minister John Key. The airline said its new flights - due to start in December - would bring "low fares competition to monopoly domestic routes around the country." Jeststar is owned by Qantas whose chief executive Alan Joyce said the time was right to bring Jetstar's fares to the regions. "When Jetstar brought low fares to New Zealand's key routes six years ago it completely transformed the market in terms of value and now we'll do the same for regional New Zealand," he said. There had been calls for more choice and lower fares on regional routes," Joyce said. "We're answering that call by launching Jetstar flights to regional New Zealand, making air travel more affordable for people who live outside the main centres and boosting tourism and the economies of these areas." The new regional destinations would connect to the broader Qantas Group network, including both Qantas and Jetstar flying across the Tasman.
At the risk of being very unpopular, this is not well received news. I do not fly Jetstar. They are a terribly run airline, with extremely uncaring staff. Air NZ offer a far far far superior product. My opinion, and I know that is not shared by all.
ReplyDeleteBUT, if JQ start the flights to these regions, Air NZ might possibly reduce their schedule to these places. Thus meaning less flight options with Air NZ. Although knowing Jetstar, it won't last! Air NZ are very powerful and know how to run a good profitable airline. Even if JQ has old RLK GM heading it. JQ have dropped out of WLG - ZQN and CHC - ZQN.
The above poster is right on mark.
DeleteThis move is potentially a short term gain for long term pain for regional NZ.
There could be regional jobs lost as both airlines clamber for marketshare in a regional market that cannot sustain two operators.
The quality of both products will deteriorate as neither service will be generating returns.
Frequencies will be forced to reduce as two competing aircraft depart side by side half full.
Good news for Napier Hope it all happens soon
ReplyDeleteI have to agree with most of what was said in the first comment. Jetstar are truly terrible. I think what people forget is that Air NZ are now cheaper than ever! They have become innovative and clever in the face of some very challenging times in Aviation. But it is cheaper to fly now, then it ever has been. Last minute can be a little pricey, but it seems the media focus on this instead of how many seats Air NZ offer very cheap. I picked up a AKL-KKE flight a day out from departure for $99!! No complaints. Air New Zealands Grabaseat is another fantastic offer!. Also NZs seats to suit structure, which offers up far more options and flexibility than ever! I wish the media would focus on the good things that Air NZ does
ReplyDeletei dissagree totaly, ANZ have a monopoly simply put, what we all know is, is that JQ might not have the best service but in all honesty i would expect that at the price point, as well as that ANZ domestic service is also somewhat poor compared to years past, not only this it comes at a time were ANZ have just spent millions to bolster ATR fleet numbers. What i see happening now is JQ making ANZ realy think about what they are doing, it might only be a small impact, 5 A/C is not that much VS ANZ but it the price point that will move shake ANZ, if i can pay for a flight with JQ PMR - AKL return for $120 or less vs what seems average in my experiance of $300+ with ANZ we all know who gets that PAX. all ANZ can do now is hope that JQ dont get a hold and settle because that could be the end of ANZ as we know it as JQ might have more than 5 Q300s if they do
ReplyDeleteSimply put, Air New Zealand do not have a monopoly.
DeleteStating otherwise is a lazy and misinformed view.
By definition, If a true monopoly existed, it would have been impossible for Jetstar to enter the domestic market.
Yeah but just how cheap are JQ Regional going to be?? I mean they are still Turboprop AC. A ATR is cheaper to operate than a Q300, yet carries 18 more pax, hence why Air NZ have invested so heavily in them. JQ will overwork their Q300s and then when one breaks down all the schedules will be chaos and the publics mistrust of JQ will be strengthened. At least Air NZ have a wide pool of Aircraft they can accommodate or operate extra flights if needed. JQ will soon realise it's tougher taking on Air NZ Regionally l than they think. Ewan Wilson learnt that the hard way. Now he knows his place, and is trying to start something completely different. Time will tell. But I also will not he flying with Jetstar
ReplyDeleteAny evidence/facts that a ATR is cheaper to operate than a Q300? I think one of the reasons why so much money has been spent on additional ATR72 is that they most likely come very cheap in the wake of all the Airbuses purchased.
DeleteI am a pilot within the NZ group. The ATR 72s are not cheaper to operate than a Q300. They actually cost exactly the same, not a hell of a lot of financial difference between the operations of a Q300 and a ATR. And actually there is not a lot of difference between the Beechcraft 1900D and the Q300/ATR. And the 1900D only has 19 seats. Very uneconomical. But some factors to consider:
DeleteThe ATR 72 has 68 seats vs the Q300/DHC8s 50 seats. This means 18 more seats to sell.
The ATR requires a 2:2 crew vs the Q300s 2:1 crew, so the extra salary of a FA to take into account.
I do question why above poster believes the ATR has come cheap in the wake of all the airbuses purchased? Dont see that logic.
Another few points:
AKL Domestic is already at max capacity at moment on gate space. This is being rectified with the removal of some of the 1900D only gates, and a change of layout with other. Air Chathams had to change the schedule so they could have a gate at AKL. WLG is also struggling at present with the current works on the Regional Pier Terminal. Once this is completed, it should be good to go.
I wait in anticipation to see what happens. Jetstar is rubbish, but i am biased :)
What the hell are you talking about mate? ATR and Airbus are two completely separate manufacturers, just because Air NZ might have got a great deal with the 320s does not mean it was the same story with their 72s! Quite the opposite actually.
DeleteATR is a joint venture and 50% owned by Airbus Group.
Delete^indeed. Although I doubt this lead to Air NZ purchasing the ATRs. They are cheap to run. Air NZ were looking at ATR 42s back when the Q300 was purchased. Bombardier gave Air Nelson a fantastic hard to pass up deal that ATR could not match.
DeleteAgain, cheap to run compared to what? The ATR72 has certainly higher fixed costs i.e. flight crew paid more than a Q300 crew, cabin crew x2.
DeleteI assume the Jetstar Q300s are on similar operating costs compared to AirNZ Q300s. So it could be a tough competition depending on the routes they start flying.
Who remembers Ansett NZ. Origin Pacific. and countless others who have tried and failed. Like other comments will Jetstar last. Maybe Mr Joyce is under pressure to utilise the 4 Q300's withdrawn from regional service here in Australia. Jet stars not a bad airline, but I only use them if there is no other alternative as a matter of convenience
ReplyDeleteI can see a CHC - ROT - AKL service working (perhaps ROT - CHC - ROT - AKL - ROT - CHC - ROT).
ReplyDeleteI can also see perhaps AKL - PMR - NSN - CHC (or a loop around all four airports)
NNR-ROT-AKL please. Such a rip off to fly out of Napier
ReplyDeleteThe hopping from A to B to C is not the Jetstar model - they fly single routes only so no flying Auckland to Nelson via Palmerston as suggested.
ReplyDeleteNo one has mentioned maintenance... who is going to do it and where??? My guess is the flights will operate from Auckland to NPE, NPL, PMR and NSN with perhaps flights from WLG to NPE and NPL and perhaps NSN. If maintenance is at CHC then flights from there to NSN and PMR
ReplyDeleteIf you don't support Jetstar, you should still welcome this news, as it will keep AirNZ honest, as they have been completely since the withdrawal of Tasman Pacific (Ansett/QF NZ) and Origin Pacific.
ReplyDeleteAs for routes, you have to hope that they avoid NZAA as much as possible, its already horribly congested and is rapidly getting worse for regional gates (mentioned above).
As for Maint, it wouldn't be unheard of using AirNZ maint (Air Nelson) many QF airframes have been maintained in the past (jetconnect) by AirNZ. Again a hope that it isn't in Auckland and provides more jobs for NS or CH.
As for the crew, I do hope that they intend on hiring a good amount of Kiwis, but I worry that this will force AirNZ to say hey there is ANOTHER pilot shortage and pressure NZ Immigration (again) to list pilots as a skills shortage opening it up to foreign crew, despite the fact that there never has or never will be a pilot shortage in NZ as long as the likes of CTC, Canterbury and Ardmore Flying School exist.
Maintenance could be done in Nelson. Air NZ Regional Maintenance is no longer part of Air Nelson hence open to anyone from anywhere. That's competition, isn't it?
DeleteIt somewhat annoys me through social media and the liked, how the general public have a real downer on Air NZs regional operations. The Media do not help this. We are served fantastically well regionally here in En Zed. Unfortunately in order to keep our wonderful services, some centres did have to be cut from the network. These Centres are now being served very well by 3rd level airlines. I live in Whakatane, and it was a bummer when Eagle pulled out of here. But Air Chathams are doing a marvelous job here, and Tauranga Airport is under a hour from my house! And once the Eastern Link Highway opens it will cut that time further. I can't believe how well Tauranga is served. Up to 7 flights to Auckland, 5 to Wellington and 2 to Christchurch. We are lucky we have a airline that is committed to expanding and developing existing regional services. Air fares in NZ are a lot cheaper the most other places I have traveled In the world. So yes, the public is all for lower Jetstar fares, but just how cheap will their regional seats be?
ReplyDeleteAt least they will have somewhere to place all their cadets who paid $150000 and cant get on the airbus........
ReplyDeleteEither that or the hordes of GA rejects floating around New Zealand.
DeleteWhy not introduce P2F? It would fit a LCC model and has proven to work in Europe.
DeleteIt already exists in New Zealand.
DeleteI know of a certain organisation who used to charge for FO time.......in a Cessna 406.
AirNZ got a more than good deal on the ATR-600's!...
ReplyDeleteThere are differences in cost to operate the B190, Q300, and AT7 but as has been alluded to, it really comes down to CASM. The ATR72 is quite literally the global leader in this regard when compared to the competition (DH3 or ATR42) regarding the 'cost to move the seat'.
I would anticipate that JetStar will be running a 4 aircraft schedule not a 5 aircraft schedule, for the same reason AirNZ topped up the ATR-600 order by 1 at the Paris Airshow. Running a 5 aeroplane schedule with 5 aeroplanes is a disaster waiting to happen!
Overnight 1 in NSN, 1 in NPE, 1 in HLZ, 1 in IVC. Then fly from those ports into AKL and CHC, followed by returns into the likes of ROT and NPL.
In regard to cadets, they will run into Part 121 issues regarding FO's with less than 100 hours ATO or 500 Multi time. Air Nelson have an exemption to this I believe, Mt Cook do not.
Absolutely right, the ATR 72 beats all other turbo prop CASK hands down, it even blitzes the ATR 42. I doubt that JQ will go anywhere near IVC as the PBN requirement would be difficult (read expensive) to comply with in the older machines from Aussie.
DeleteThe real interesting thing to see with the JQ operation is if the are planning to run these as a network operation. If they do it will be a huge change in the typical LCC model and will dive the costs of operation higher.
I do find it distasteful that JQ are playing a "The Batchelor" type playing off the regions. If you drop the landing fees, the lease costs and subsidise my operation I might just fly to your airport. If they do get these kick backs guess who will face the missing income for the airport?
They've obviously haven't done any research if they're still deciding where to fly.
DeleteCook also has this exemption. So no reason why Jetstar can not have it as well.
DeleteCan't wait to see the disappointment on the general flying public's faces when they realise this doesn't mean PMR-AKL booked on the day of travel for $39 return...
ReplyDeleteWell in PMR we are used to paying up to $237+ for flying on the day (seat-only fare - one way). I'm sure we would be happy with even $139 return ;)
DeleteYou'd be happy with "even $139 return" you must be joking, thats $69 a sector, you cannot sustainably sell more than a handful of seats at this price per flight using ATR and Q3 types.
DeleteThat is true - the point was more aimed to highlight that most regions outside the main centres won't be expecting $39 seats as posted above, just as long as the price is still a reduction on the huge cost charged at the moment.
DeleteIf the demand is there, a bigger aircraft will potentially be put on to replace.
ReplyDeleteSomehow I can't see a place like Timaru, or Westport having enough passengers to fill a Q300 or ATR 3-4 times a day to increase the scheduling.
All good complaining that prices are too high....but seriously think about if a bigger aircraft flew on those routes, would the demand actually be there for multiple services a day?
If you plan ahead, you can potentially get a cheaper fare. But leaving it until the last moment....what do you expect?