History
Jetstar Asia was launched in 2004 as a partnership between Qantas, holding a 49% stake in the airline, Singaporean businessmen Tony Chew (22%) and FF Wong (10%) and the Singapore government's investment company, Temasek Holdings (Private) Limited (19%). It received its Air Operator's Certificate from the Singapore government on 19 November 2004.
Due to its belated entry into the market, the airline differentiated itself from its competitors by flying further; anywhere within a 5-hour radius from Singapore while its competitors flew to destinations within a 4-hour radius from Singapore. The airline announced 7 routes to Shanghai, Hong Kong, Taipei, Pattaya, Jakarta, Surabaya and Manila; the most ambitious start-up plan compared to any of its Asian rivals, which would have given it the widest international coverage.
Online ticketing commenced at 0800 hours (8GMT) on 7 December 2004, a day after the first three routings and their promotional prices were announced, namely S$48 (HK$228) to Hong Kong, S$88 (NT1788) to Taipei and S$28 (Bht725) to Pattaya on a one-way ticket for all seats in the first week of operations as each routing was launched. Flights to Manila began in 2005. As part of its differentiation, Jetstar flew to Ninoy Aquino International Airport instead of the cheaper Diosdado Macapagal International Airport in Angeles City.
However, services to certain announced destinations (Shanghai, Jakarta and Surabaya) could not be started. The non-start of flights to Shanghai was because China's aviation authority did not allow foreign budget airlines flying to both Shanghai and Beijing airports. Flights to Indonesia were not allowed as Indonesia's government embarked a policy of protectionism. Existing flights by low-fare airlines, such as Valuair's flights to Jakarta and Denpasar as well as Tiger Airways' service to Padang, were not revoked.
Despite facing a difficult market, Jetstar Asia took delivery of a fifth aircraft in 2005 and sought approval for new routes. Jetstar planned to lease the aircraft from Atlasjet Airways, but the aircraft was later withdrawn from the lease arrangement. Discussions were held with Qantas to source additional aircraft. In 2005, the budget carrier began seeking approval from Cambodian authorities to fly to Phnom Penh and Siem Reap, and was eventually granted rights.
Hot on the heels of Tiger Airways' success on the Phuket route, Jetstar Asia announced 4 times weekly flights to Phuket. The flight commenced on 25 October 2005, however due to inconsistent demand and better opportunities elsewhere, Jetstar announced the suspension of flights to Phuket on 27 March 2008.
By the end of December, it was clear that Jetstar Asia was bleeding cash and its investors were struggling to finance the airline. On 2 December 2005, Jetstar Asia announced that its chief executive officer (CEO), Ken Ryan, was stepping down to return to Australia. Mr Ryan would take on a new management role at Orange Star's majority shareholder Qantas and was replaced at the helm by Neil Thompson. On 9 February 2006, Jetstar Asia appointed Singaporean Chong Phit Lian as the airline's new CEO, replacing interim CEO Neil Thompson.
On 26 July 2006, Qantas decided to re-position both of its Jetstar ventures in Australia and Singapore as a single brand. This was followed by a launch of Jetstar's long-haul operations to six destinations in South-east Asia from Australia.
On 15 September 2006, Jetstar Asia became the first international airline to land at Bangkok's Suvarnabhumi Airport.
On 16 April 2008, Jetstar Asia announced that it had reported a profit ahead of schedule, and ahead of local rival Tiger Airways. Both Jetstar Asia and sister airline Valuair saw a 20% increase in revenue, a 4% rise in passenger load and an overall 20% jump in passenger carriage for the year ending March 2008. The airline's CEO attributes its success to better brand awareness as well as an increased utilisation of aircraft, growing revenue and a broadening of the earning base.
Read more about this topic: Jetstar Asia Airways
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