Jetstar

Task 1 a) Executive Summary 1. Brief description of products and function Domestic logical argument Fr eight-spot International Air Freight bottom Charter Ground Handling Retail Fleet and Equipment Online Solution 2. limit Target Market 3. Competative Advantage 4. Positioning Statement 5. Anticipated sales, internet and grocery store sh are The Jetstar Group is the largest upset cost air hose in the Asia Pacific by revenue and has flown everyplace 100 million passengers since it launched in 2004.During fiscal 2011-2012, the airline carried more(prenominal)(prenominal) than 20 million passengers, making Jetstar the fastest-growing airline in the Asia Pacific to reach this milest atomic number 53 in seven geezerhood of flying. The Jetstar Group has grown from providing employment to 400 people in 2004 to more than 7,000 across the Asia Pacific today. Collectively the Jetstar Group offers over 3,000 flights a calendar week to 57 destinations in 16 countries and territories across the Asia Pacific region with a drop dead of around 95 aircraft.Jetstar is a value based, low cards mesh topology of airlines operating in the leisure and value based markets. Jetstars flush is to offer completely day, some(prenominal) day low fares to enable more people to fly to more places, more often. Strategy and structure Jetstar is spell of the Qantas Groups two- soft touch growth schema, where Qantas competes at the subsidy and business market and Jetstar focuses on leisure markets. The Jetstar Group comprises Jetstar Airways in Australia and New Zealand (wholly owned by the Qantas Group) Jetstar Asia based in capital of Singapore.The company is managed by Newstar Holdings, majority owned by Singapore company Westbrook Investments (51 per cent), with the Qantas Group prop the remaining 49 per cent Jetstar Pacific based in Vietnam (majority owned by Vietnam flight paths with the Qantas Group holding 30 per cent) Jetstar Japan, a partnership between the Qan tas Group, Japan airways, Mitsubishi Corporation and light speed Tokyo Leasing Corporation Jetstar Hong Kong, a partnership between china east flight paths and the Qantas Group (subject to regulatory approval). BrandThe Jetstar brand design is based on the Confederate Cross constellation, with the orange star representing the smallest star of the Cross, Epsilon Crucis. The airlines colours, orange, notes and black were chosen for their bold and modern feel. Fleet Current choke As of December 2012, the Jetstar Group fleet consists of 96 aircraft, including 79 Airbus A320-200 aircraft, piece of tail-configured for up to 180 passengers Six Airbus A321 aircraft, seat-configured for 220 passengers 11 Airbus A330-200 aircraft, with two cabins ( thrift and business) for up to 310 passengers Fleet ordersJetstar has logical 14 Boeing 787 Dreamliners, which are due to be delivered in 2013. These raw(a)-generation aircraft include features much(prenominal) as larger windows, improv ed cabin pressure to reduce jetlag and elicit consumption about 20 per cent lower than similar-sized aircraft. In revered 2011 the Qantas Group placed an order for 110 Airbus A320s. The Jetstar Group has access to these aircraft to avail its growth. This includes 78 A320 NEOs (New Engine Option), which reduce fuel consumption by 15 per cent and allow for be available for delivery from 2015. In total, Jetstar has about 150 aircraft on back order.Network The Jetstar Groups network is make up of 56 destinations in 16 countries and territories. Check out our synergetic route map to find out exactly where we fly. misfortunate fares Jetstar aims to wear the lowest fares on all the routes it operates and backs every fare with a bell Beat Guarantee. Should any customer find a lower fare online, on the equal day, analogous route and at a comparable time, Jetstar forget beat the fare by 10 per cent. Customer get word Jetstar customers only pay for what they need. Customers can c hoose between two types of fares delivery or commerce (on selected international flights).Once a fare is selected, customers have the pickaxe to add on checked baggage between 15 40 kilos per passenger and/or a bundle of extras, which can include seat selection, in-flight products, fare flexibility, lounge access and Qantas Frequent Flyer Points. For domestic flights on Jetstar Australia and New Zealand, passengers may choose to purchase a variety of snacks and beverages. Depending on the length of the flight, hot meals are as well as made available for purchase. On Jetstar Asias short haul flights, a variety of snacks, beverages, hot meals, blow items and duty free goods are available for purchase.On long haul flights (onboard the Airbus A330-200), economy class passengers can choose to pre-purchase a variety of meals, entertainment, and comfort options to customize their flight experience. Business class passengers enjoy wide comfy strap sit down in a separate cabin and inclusions such as meals, entertainment and comfort packs along with seat selection and spare baggage. Business passengers who choose a Business Max bundle also emolument from lounge access, Qantas Frequent Flyer Points and Qantas Frequent Status credits.Interline and codeshare partners The Jetstar Group has lead codeshare partners on select Jetstar routes, being Qantas, Japan Airlines and American Airlines. The Jetstar Group has 25 interline partnerships on select Jetstar routes American Airlines, Aircalin, Air Canada, Air France, Air Niugini, Air Pacific, Air Tahiti Nui, British Airways, Cathay Pacific, Dragonair, Emirates, Etihad, Finnair, Japan Airlines, Jet Airways, KLM LAN Airlines local area network Argentina Lan Ecuador Lan Peru Lufthansa Qantas Qatar Airways Royal Jordanian and United.Performance Jetstar has been profitable every class since its launch in 2004. The airline delivered a record vestigial EBIT (Earnings Before Interest and Taxes) of AUD$203 million in 2011- 12, a 20 per cent increase on the previous financial year. In the same period, Jetstar grew boilers suit capacity by 14 per cent and carried 20. 6 million passengers, an 11 per cent increase on the previous financial year. Awards Jetstar Airways Awards go around affordable Airline Australia/Pacific 2012 and 2011 (Skytrax) Partner of the category 2012 Changi Airline AwardsTop 5 Airlines by Absolute Growth in Cargo Carriage 2012 (Changi Airline Awards) Best International Budget Airline 2011 (About. com Readers Choice Award) Best low-priced Airline Australasia 2009 (Skytrax) Top 5 common carriers for Passenger Growth 2009 (Changi Airline Awards) Low-Cost Carrier of the Year 2008 and 2007 (CAPA) Best Low-Cost Airline Asia Pacific 2008 (Budgie$) Best Low-Cost Airline Worldwide 2007 (Skytrax) Best Cabin Crew Australia and New Zealand 2007 (Skytrax) operational Excellence 2007 (Airline Business) Jetstar Asia AwardsTop 10 Airlines by Passenger Carriage 2012, 2011, 2010, 2009, 2 008 and 2007 (Changi Airline Awards) Largest Growth in Passenger Traffic from Singapore 2011 (Changi Airline Awards) AsiaOne states Choice Award for Best Budget Airline in 2010 Best Brand Experience Low Cost Airline in 2008 (Ad Asia Magazine) Best Asia Low Cost Carrier 2006-2007 (Changi Airline Awards) Best Low Cost Airline -Asia and South East Asia 2006 (Skytrax) Low Cost Airline of the Year 2006 Merit Award (CAPA) Best Budget Airline of the Year 2006 (TTG Travel Awards)Jetstar Pacific Awards Vietnams most popular e-commerce website 2008 Bruce Buchanan, CEO of Jetstar, admits that new low-cost airlines would increase competition but Jetstar would thrive through fleet magnification and new marketing strategies. Why have so many another(prenominal) airlines that have subsidiaries, including THAI, Singaporean Airlines and Malaysian Airlines, adopted a multi-brand strategy? The Qantas Groups two-brand strategy, utilising both Qantas and Jetstar brands, allows the group to design and grow products that suit the specific needs of a broad customer base.This strategy enamours the Qantas brand focus on the premium and business traveller with products and a route network catered for these groups whilst Jetstar focuses on luck the needs of the leisure and value-oriented traveller. By having two brands the Qantas Group is able to prize different market opportunities and deploy the best product to suit the fortune and specific market conditions. In Europe, we k nowadays that Ryan Air is the biggest low-cost. Who is the biggest in Asia now? How does Jetstar position itself in this market?In hurt of revenue, Jetstar is the biggest. In terms of fleet size, we believe AirAsia to be the biggest. It is our intention to continue to grow our Pan- Asiatic strategy and to be a leading low-fares carrier in the Southeast Asian region. What are Jetstars plans to enhance competitiveness? Jetstars Pan-Asian strategy is providing the summation platform for our competitiveness. We are currently aspect at regional growth opportunities and new shell out from our growing networks from bases in Singapore, Australia, New Zealand and Vietnam.A key focus for us is looking for network opportunities that allow us to maximise alive networks and complement active flying as well as looking at brand new opportunities in Asia. The growth in the awareness of our brand rattling supports the growth of our networks throughout Asia and provides us a rugged competitive advantage. As Jetstar matures in the region, our ability to consistently offer the lowest fares on the routes we serve and our ability to focus our marketing and business model around this core offering continues to provide us with an attractive and compelling customer offering.Our strong association with Qantas and its industry-leading safety standards is also a powerful association as we grow in Asia. What plan does Jetstar have to start new flights to both existing and new destinations? What plan does Jetstar have to expand its fleet? For the conflict of the financial year 2010/2011, Jetstar will add a further eight A320 aircraft and two A330 aircraft into its groupwide fleet for opportunities in Australia, New Zealand, Singapore and Vietnam.This will withdraw introducing graduation exercise time long-haul flying from Singapore when the carrier commences direct routine operate between Singapore and Melbourne on December 16 and thusly direct daily services between Singapore and Auckland on run into 16, 2011. Jetstar Asia will wel scrape up an appurtenanceal two A320 aircraft this year for flying from Singapore and an additional A320 aircraft will be added to domestic New Zealand flying. Jetstars China expansion will continue with flights to Guilin in southern China from Singapore to also soon commence representing its sixth collective Chinese mainland or wider China destination.In the medium to long term, Jetstar will be looking to grow its existing fleet of nearly 70 ai rcraft by an additional 50 aircraft over the next five years. In mid-2012, the carrier will welcome its first Boeing 787 Dreamliner, Jetstar becoming the first carrier in the Jetstar group to operate these progressive aircraft. Jetstar is scheduled to receive 15. What is Jetstars marketing strategy for the rest of 2010? What new services does Jetstar plan to offer? Jetstar will be expanding services in all markets over the course of the current financial year.In Australia, we will be adding up to 30 per cent additional domestic capacity for the financial year ending 2011. In New Zealand, we have recently announced an additional two A320 aircraft to be based in New Zealand, representing an additional 717,000 seats annually. In Singapore, we will be adding an additional two A320 aircraft to its fleet of 10 based in Singapore by the end of 2010, which is in addition to the commencement of first time value-based long-haul flying from December, which will eventually see two A330 aircraf t based in Singapore.At Jetstar Pacific in Vietnam, we are readiness the introduction of its second A320 aircraft to join its existing fleet of five B737s and one A320 this calendar year as part of a fleet switch process towards a future all-A320 operation. How has Jetstar performed financially, and what are your expectations looking ahead? Jetstar Brands post an EBIT of $131 million Australian dollar for the financial year ending June 2010. How does Jetstar compass the competition once Thai Tiger Airways gets off the ground and how will you cope with it given that several low-cost irlines are competing in the same areas. Will price-cutting be the answer? The Thai market has always been a competitive one and we dont expect that to change as new entrants come onto the market. Of all the low-cost carriers, Jetstar is the only one to offer a low fares guarantee which stipulates that should a customer find a lower-fare online on the same date at a comparative time to a Jetstar servic e, Jetstar will be discount that fare by 10 per cent.