Sunday, February 7, 2010

Changi Airport Group and Jetstar Group sign air hub deal supporting flights growth

Jetstar to make Changi Airport its largest hub in Asia

Changi Airport Group (CAG) and Jetstar signed an agreement today to launch a strategic partnership that will see Jetstar continue to make Singapore Changi Airport its largest air hub in Asia for both short and long haul operations. As part of the agreement, Jetstar will operate its highest number of services and base its largest number of A320-family aircraft in Asia at Changi. It also commits to introduce long haul services using wide body aircraft out of Singapore.


Under the three-year agreement, the Jetstar Group – which includes Jetstar in Australia and Jetstar Asia/ Valuair based in Singapore – is committed to increase existing flight frequencies and offer more destinations from Singapore.

Jetstar’s projected growth at Changi will include additional A320-family narrow body services and, for the first time, wide-body A330-200 medium and long haul flights to and from destinations in Asia and beyond. Jetstar also aims to grow the percentage of transit and transfer traffic through Changi among its passengers.

CAG will support Jetstar’s continued growth at Changi Airport with various incentives under the Changi Airport Growth Initiative which was introduced on 1 January 2010. The incentives will enable Jetstar to lower its cost of operations at Changi. It will also receive additional incentives for launching services to cities not currently connected to Changi. This will provide more offerings and new exciting destinations for passengers travelling via and out of Singapore.

As a partner, CAG will work closely with Jetstar to explore route opportunities to grow its traffic out of Changi. CAG will also support Jetstar’s operational needs, such as to improve its ground operations and to enhance the airport experience of its passengers, for example by introducing an early check-in option for Jetstar passengers travelling on the same day.
Growing at Changi, together

Welcoming CAG’s partnership with Jetstar, CAG Chief Executive Officer, Mr Lee Seow Hiang, said, “We are honoured that Jetstar has chosen Changi Airport to be its largest hub in Asia. We are committed to supporting Jetstar’s growth at Changi by helping it to grow traffic and to keep costs low. By hubbing at Changi, Jetstar will gain from inter-lining opportunities with the many airlines that fly here, including its parent, Qantas, which already uses Changi as an Asia hub.

“For Changi Airport, it will benefit from Jetstar’s increased number of flights and destinations, which will contribute to higher passenger traffic and a stronger connectivity network. And, importantly, this partnership is also beneficial for air travellers in the region who will enjoy a greater choice of low-fare travel options through Changi.”

Mr Lee added, “Our agreement with Jetstar signals CAG’s strong desire to work with our airline partners to grow the pie at Changi. We are ready to develop customised partnerships with airlines based on their business models and growth plans, whether they are full service or low cost carriers.”

Jetstar Chief Executive Officer Mr Bruce Buchanan said the new agreement would support significant growth opportunities for Jetstar and its networks linking Singapore.

“This agreement is most important to us and provides a platform for sustainable future growth throughout Asia,” Mr Buchanan said.

“Partnerships like this with Changi Airport Group allow us to invest in both existing and new flying markets and present opportunities from Singapore for us to drive growth.

“Singapore is of high strategic importance to Jetstar and equally of great importance to the Qantas Group. This agreement provides further leverage to us now seeking the full benefits of a burgeoning hub operation in Singapore.

“The clear operational advantages of Singapore as a hub and primary access point into Asia are clear and can now be further built upon as a result of this agreement.”

Jetstar, a pioneer in Asia’s low cost carrier sector, operates 408 flights each week to and from Changi, offering its passengers a varied menu of 23 destinations. Its future planned growth is supported by fleet expansion plans to beyond 100 aircraft by 2014/15.

Friday, February 5, 2010

Jetstar set to transform airport experience for customers via efficient self-service check-in model USD $3.5 billion deal

Jetstar set to transform airport experience for customers via efficient self-service check-in model USD $3.5 billion deal with International Aero Engines (IAE) signed


Low fares leader Jetstar will set about transforming the check-in experience for its Australian and New Zealand domestic customers during 2010 by unveiling a new approach towards the airport experience for customers with a target of 100 per cent customer self service.

The proposal builds upon existing customer self service technology now in place for Jetstar’s domestic passenger base including Web Check and Self Service Kiosks at some Airports.

This will be complemented by the introduction of world-first SMS Boarding Pass technology during the first 2010 quarter and automatic Web Check and pre-enrolment for flights at time of booking.

Jetstar Chief Executive Officer Bruce Buchanan announced the airline’s plans during an address to the Low Cost Airlines World Asia Pacific 2010 Conference in Singapore.

In a series of announcements the Pan Asian carrier also secured Agreements valued at up to USD $3.5 billion with the International Aero Engines (IAE) consortium to have the latest V2500 SelectOne™ engine power a new fleet of 50 additional Airbus A320 family aircraft for the Jetstar Group, with options and purchase rights on up to 40 more aircraft.

The major deal, one of the largest in Jetstar’s history, includes an Engine Purchase Agreement valued around USD $1.5 billion if all options and purchase rights are exercised to be distributed amongst the mainline Jetstar fleet based in Australia and New Zealand, as well as with Jetstar Asia/Valuair of Singapore and Jetstar Pacific, based in Vietnam,.

A long-term USD $2 billion Aftermarket Services Agreement will cover these new engines and those installed on 40 IAE-powered aircraft that the Jetstar businesses currently operate.

Mr Buchanan said over the term of the Agreements significant savings would be generated and solidified a long term strategic commercial relationship with IAE to help support Jetstar’s continued growth, including its Pan Asian network plans.

“The Agreements reflect Jetstar’s continued focus on cost-competitive outcomes and fostering long term partnerships that help deliver sustainable low fares and growth,” Mr Buchanan said.

Jetstar’s move to help put people back in control of their airport experience during domestic travel will incorporate a more streamlined and hassle-free customer airport experience supported by:

Doubling the number and footprint of Self-Check Kiosks across Jetstar’s Australian and New Zealand domestic networks. Kiosks will cover all domestic ports in Australia and NZ;

Introduction of world-first SMS boarding pass technology across Jetstar’s domestic Australian & New Zealand ports during 2010 and fitted to all Jetstar Self-Check Kiosks;
Enhanced web tools such as Automatic Web-Check at Jetstar.com;

Redeploying existing Jetstar staff from primarily check-in duties to customer service and revenue generating activities.

Mr Buchanan said the airline’s fresh approach towards allowing its domestic customer base greater choice in self service prior to their travel would balance the efficient application of new technology for air travelers with strong customer service outcomes.

“Through our growing suite of innovative new customer facing applications at Airports we are seeking to ensure that the airport experience is increasingly convenient, easier and more hassle-free than before,” Mr Buchanan said.

“The approach we are taking is firmly designed around improving, not reducing, the customer service and airport experience at increasingly busy terminals, and of empowering both regular and irregular Jetstar flyers to use technology to take control of the airport experience.

“This is an extremely positive and exciting step forward for our airline as well as for our employees that will greatly enhance customer service levels.

“There will be no change in our Airport staffing numbers under this model, meaning our Airport Customer Service personnel can move beyond the check-in counter to spend more effective time directly with our customers prior to flying.”

Jetstar passengers who Web-Check for Australian domestic flights will soon be given the option to have their boarding pass and unique boarding code sent to their mobile phone via a standard text SMS message.

The SMS technology has been developed by Melbourne-based company Sissit Group with which Jetstar has a Research and Development arrangement.

Unlike some other airlines who have introduced this technology to WAP (Wireless Application Protocol) or internet enabled handsets, in a global first, any mobile phone will be able to accept the Jetstar boarding pass on a domestic flight via the common text message.

This will allow customers who purchase fares via Jetstar.com to request at the time of booking for the airline to automatically check the passenger(s) in 24 hours prior to their Jetstar flight departure with the boarding pass to then be sent via email or SMS text message.

Mr Buchanan said SMS boarding pass technology would be further trialled on Sydney-Melbourne (Avalon) flights from late February 2010, with a staged roll-out across Jetstar’s domestic Australian and New Zealand networks during the 2010 calendar year.

He said automatic check-in when purchasing a fare at Jetstar.com had commenced earlier this month.

“Automatic check-in for the airline’s Australian and New Zealand domestic services allows passengers at the time of booking to choose to check-in and have their boarding passes automatically sent to them via email 24-48 hours before flight departure,” Mr Buchanan said.

“The new technology will be further enhanced when SMS boarding pass technology is fully activated, meaning a boarding pass can then be delivered direct to the future passenger’s mobile phone.

“By introducing applications such as Automatic Web-Check and SMS Boarding Passes, Jetstar saves real costs, which we are able to directly pass on to our customers with our low fares.”