Jetstar is closing its struggling Jetstar Asia (3K) operation— freeing up more aircraft to operate in the New Zealand market.
The Qantas Group says its strategic restructure supports its ‘historic fleet’ renewal programme and strengthens its core businesses in Australia and New Zealand. The closure of 3K frees up AUD500 million, and 13 A320 aircraft will be to be progressively redeployed to Australia and New Zealand.
. . . More Domestic?
The redeployed mid-life A320 aircraft will be used for fleet renewal in New Zealand and Australia and create more than 100 jobs and more low fares, says QF. While the airline group has not hinted at where those 13 A320 aircraft will operate, industry insiders believe its likely JQ could add more New Zealand domestic capacity, as well as more Tasman flying. “They’re unlikely to dump capacity in their home [Australia] domestic market, and while they could also look at the South Pacific it’s not a stretch to suggest [the QF group] will be evaluating more New Zealand domestic and transtasman flights.” JQ has increased its fleet in New Zealand to eight aircraft and expanded domestic and transtasman flying this year, as the QF group ramps up its operations on the Tasman and New Zealand markets.
…Refunds For Pax
Only 16 intra-Asia routes will be impacted by the closure of 3K with no changes to JQ and Jetstar Japan services into Asia. QF says JQ’s international services in and out of Australia remain unchanged. 3K will continue to operate flights on a progressively reduced schedule, before its final day of operation on 31 Jul. Customers with existing 3K bookings on cancelled flights will be offered full refunds and QF will reaccommodate customers onto other airlines where possible. Singapore-based 3K has been impacted by rising supplier costs, high airport fees, and intensified competition in the region. Some supplier costs are up 200%, adds QF.
