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Based in Singapore, Jetstar Asia is a low cost airline. Using the Qantas Group's Jetstar brand, Jetstar Asia has a network of services within Asia using A320 aircraft. Jetstar Asia/Valuair is 51% held by Westbrook Investments Pte Ltd (Westbrook) and 49% by Qantas.
Location of Jetstar Asia main hub (Singapore Changi Airport)
LCCs will continue to evolve into hybrids of the original core model. CAPA and OAG consider Jetstar Asia fits the LCC profile and it is included in our reporting on this basis. Please note: when reporting for an airline is changed from or to LCC the historical data is not affected and it can lead to a distortion in the current reported data. Contact us if you have any queries.
68 total articles
Tigerair Singapore prepares to resume expansion in late 2017 and 2018; feeding Scoot will be crucial
Singapore Airlines (SIA) short haul LCC subsidiary Tigerair is planning to resume expansion in 2H2017, ending a three-year hiatus from growth. The resumption of fleet and capacity expansion is made possible by the completion of a turnaround effort.
Tigerair Singapore is now back in the black after more than two years of losses driven by overcapacity. Market conditions in Singapore have improved, and a virtual merger with Scoot is starting to open up new opportunities for expansion since Scoot needs Tigerair to feed its fast-growing medium/long haul operation.
Tigerair currently operates 23 A320 family aircraft, having reduced its fleet from a high of 27 aircraft in 2014. The LCC is now planning to add six A320s in 2017 and 2018, resulting in a new all-time high of 29 aircraft. Tigerair, which became 100% SIA owned in early 2016, also has 39 A320neos on order that will be used for a combination of fleet renewal and growth over the next decade.
Emirates, boosted by Jetstar Asia, will become the largest foreign full service airline in Singapore
Emirates is poised to overtake Cathay Pacific as the largest foreign full service airline in the Singapore market from early 2016 as it upgauges two of its seven daily Singapore flights to the A380. Emirates will have almost 42,000 weekly seats in Singapore in Mar-2016, a 12% increase over its current capacity and a 29% increase compared to Mar-2014.
Emirates has been a key contributor to growth in Singapore over the last two years during an otherwise very slow period for Changi Airport. The expansion would not have been possible without a new and fast growing partnership with Singapore-based LCC Jetstar Asia.
Jetstar Asia has enabled Emirates to use Singapore as a regional hub for Southeast Asia. Emirates already had hub status at Singapore with three fifth freedom destinations along with four daily non-stop flights from its main hub in Dubai.
Jetstar Asia is looking for opportunities to further boost yields and expand its network while continuing to refrain from fleet growth. The Singapore based LCC returned to the black in the fiscal year ending 30-Jun-2015 (FY2015) after enduring the most challenging year in its history in FY2014 due to overcapacity and sharp yield declines in its home market.
Jetstar Asia suspended fleet growth in early CY2014 and has since maintained a fleet of 18 A320s. But the carrier has been able to grow ASKs by improving utilisation, enabling it to add capacity in markets that have strong feed from interline or codeshare partners.
Unit revenues have been on the rise over the last several months and Jetstar Asia could see further yield improvements as it adds more new partners and expands existing partnerships. The carrier is also adding in late 2015 three secondary regional routes which are not served by any other LCCs as it tries to reduce its reliance on markets that are still suffering from overcapacity and irrational competition.
Every two hours, an Emirates aircraft – half of them A380s – departs Dubai for Australia. After India, the UK and US, Australia is Emirates' fourth largest market by seat capacity deployment but second largest, after the US, for available seat kilometres.
About one in every 10 seat kilometres flown by Emirates is en route to Australia. Emirates is the largest international airline in Australia after Qantas while its neighbour, Etihad Airways, is eighth largest. Etihad in Australia punches above its weight: globally it is 37% the size of Emirates but has 45% as many seats to Australia as Emirates does.
Qatar Airways is missing out. If its Australian capacity was in proportion to Emirates the way Etihad's is, Qatar would have around 18,000 weekly seats and 50-60 weekly flights, placing it on the heels of Cathay Pacific as the seventh largest airline in Australia. Instead Qatar has only 14 weekly flights, 4,700 seats and is Australia's 18th largest carrier.
LCCs now account for more than one in four airline seats worldwide, whereas within Southeast Asia close to three in every five seats are now produced by LCCs. In virtually every region worldwide, LCCs are the growth engine within the airline business. But the airports they serve were often built in a very different era. As a result, there is commonly a mismatch between airport infrastructure, technology and services and the contemporary needs of LCCs.
Airport managers and government regulators can also lack insight into the drivers of the LCC business model. Meanwhile, there are different types of LCCs, as many adopt the features of their full service counterparts and ‘hybridise’.
This essential one-day CAPA Summit in Bangkok aims to help bridge the gaps in awareness that exist between the stakeholders - to help create the conditions for a win-win in Asian aviation and beyond.
The CAPA Summit will be held at the Shangri-La, Bangkok on 15 September, with a welcome reception, hosted by AirAsia, on the evening on 14 September.
AirAsia has signed up as the anchor tenant for Changi Airport’s T4, a new hybrid terminal which is slated to open in 2017. AirAsia expects to reduce its operating costs significantly in Singapore as it moves from T1 to T4, giving it a better foundation to allow it potentially to resume expansion in Singapore.
AirAsia grew rapidly in Singapore from 2008 through 2013 but cut capacity in 2014 as market conditions became extremely challenging. Lower operating costs, driven by automation of passenger services, and incentive packages should make it easier for AirAsia to add capacity on some of its 15 existing routes from Singapore and launch new routes.
AirAsia could also potentially use T4 as a transit hub by introducing its Fly-Thru product in the Singapore market. Although it is not a hub or base Changi is AirAsia’s third largest airport. Only Kuala Lumpur and Bangkok have more AirAsia seats than Singapore.