JQ expansion - with props!?

[QFflyermelbourne]

Press conference in Auckland shortly with NZ Prime Minister, Transport Minister and Alan Joyce. Rumour is Jetstar to announce a prop service in NZ to take on Air NZ domestically on monopoly routes with currently parked surplus Q300 Qantaslink aircraft. Apparently to be crewed by Eastern staff in Jetstar paint jobs. I have to say - one of the more sensible ideas I've heard from them in ages. Those routes are daylight robbery currently. There has to be money to make!

Also not seen it reported here but it appears JQ has announced a new route with Melbourne (Avalon) to the blessed Gold Coast. $29 flash sale.

 

[TomVexille]

Thought it was confirmed an hour ago?

 

[juddles]

I love propeller aircraft - really feels like true flying.

 

[Mattg]

Jetstar promises 'low cost' fares for new regional services - One News | TVNZ

New destinations under consideration include Hamilton, Rotorua, New Plymouth, Napier and Palmerston North in the North Island and Nelson and Invercargill in the South Island, in addition to the Qantas subsidiary's current network of Auckland, Wellington, Christchurch, Dunedin and Queenstown.


They'll be operated by a fleet of five 50-seat Bombardier Q300 turbo-prop aircraft previously used in Australia by QantasLink and are expected to create at least 100 new jobs for pilots, cabin crew, and ground crew.


Regional fares will go on sale in September with first flights taking off in early December.

 

[jimmylikesitwet]

Jetstar expands into regional NZ

Jetstar has announced they'll be launching regional NZ services in December this year using 5 Q300 aircraft currently surplus to requirements with QantasLink.

Regional shake-up: Jetstar to break Air New Zealand's domestic stranglehold - Business - NZ Herald News

Good news for Qantas Frequent Flyers who have to travel to regional NZ and also should have a downward effect on prices. Air NZ shares are down 10% today...

 

[Cool Cat Phil]

Re: Jetstar expands into regional NZ

Regional Based Kiwi's I've spoken to, often find it cheaper to fly CHC > SYD > AKL , then to fly a straight regional domestic route to AKL for example.

This type of new Competition will of course benefit loyal Air NZ customers too, with regional routes being bought under the spot light.

Not only will the key Trunk routes in NZ be competitive, but so to will the regional routes which have been crying out for competition for years.



Air NZ have recently experienced some outstanding financial results in the past year, thanks mainly to a lack of competition on high yielding regional routes & the monopoly on the AKL > LAX sector..... I wonder if Air NZ can sustain such good results moving forward?

Bring on the September launch of JQ's pricing of the regional routes I say !

 

[esquire]

Great news. Hopefully

Even as a VA WP I do lots of regional flights around NZ and not one AirNZ flight ever counts for points or SC with VA - even at the obscenely expensive pricing. So I am happy to give JQ a go if QF QC and points can be had.

 

[Mattg]

Re: Jetstar expands into regional NZ

http://www.australianfrequentflyer.com.au/community/travel-news/jq-expansion-with-props-68789.html

 

[pauly7]

Ouch ouch ouch - for AirNZ.... Great for NZ consumers though!

Their monopoly is slowing being chipped away. With QF attacking them domestically and QF/AA giving them some heat potentially very soon internationally will be interesting to see how they perform with some real pressure applied. Has been a cruisy ride for them for a while.

Will be interesting to observe flow on effects to VA, Air NZ are already demanding that they make more money... This is only going to increase that order!

 

[samh004]

Glad to see JQ expanding, and will be interesting to see the Q300's with an orange star...

 

[gaz0303]

Glad to see JQ expanding, and will be interesting to see the Q300's with an orange star...

Scary thought...what if it starts happening on Aus regional flights?

 

[amaroo]

hahaha wonder what it feels like to front a press conference as the senior representative of the majority owner of an asset ... that will suffer from the announcement you've just had to make as the tourism minister.

Jetstar steps up fight across Tasman, sending Air NZ shares into a dive

Speaking alongside Mr Joyce, New Zealand Prime Minister John Key, who is also Tourism Minister, said the regions in New Zealand would be "openly cheering" Jetstar's expansion, adding that "competition keeps everyone on their toes". His National Party's core strength has traditionally been in regional areas.

 

[juddles]

Interesting market reaction - both AirNZ and QF shares dropped.

 

[amaroo]

Interesting market reaction - both AirNZ and QF shares dropped.

2.79% looks a lot better than 11.3% ... double digit is always a poor sign.

 

[samh004]

Scary thought...what if it starts happening on Aus regional flights?

That wont be good news... I think QFLink already makes a good bit of money so I can't see those routes being handed over to JQ. However, if they were I'd be less likely to visit regional destinations, compared to previous years where I've really enjoyed visiting regional destinations. It's more than just the points earning, it's about how I'm onboard and at the airport too. So hopefully, this isn't being considered.

 

[pauly7]

That wont be good news... I think QFLink already makes a good bit of money so I can't see those routes being handed over to JQ. However, if they were I'd be less likely to visit regional destinations, compared to previous years where I've really enjoyed visiting regional destinations. It's more than just the points earning, it's about how I'm onboard and at the airport too. So hopefully, this isn't being considered.

QFLink cost base has been hypothesized to already be below VA regional so a JQ regional launch in AU I would say is unlikely unless they truly believe they can make a heap more money somehow, but QFLink is a lean machine already so unsure how JQ could beat that cost base significantly or alternatively drive significantly more traffic....

 

[docjames]

What is the range of a Q300 and what routing do they take to get from Aus to NZ?

Wonder where the repaint will happen?

 

[TomVexille]

What is the range of a Q300 and what routing do they take to get from Aus to NZ?

Wonder where the repaint will happen?

Don't know the empty range, but I assume delivery would be similar to the route NZ's Q300s took.

 

[docjames]

Which was???

 

[Mattg]

What is the range of a Q300 and what routing do they take to get from Aus to NZ?

Wonder where the repaint will happen?

I have no idea what routing they would take, but I believe BNE-NLK-AKL would be within the range of a Q300.