| Carrier: | Jetstar Asia
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| Headquarters: | Singapore
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| Founded: | 2004
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| Destinations: | 13
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| Bases: | Singapore
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| Owners: | Qantas (49%), Temasek (19%), Tony Chew (22%), FF Wong (10%)
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| Listed: | Yes
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| Online Booking: | Yes
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| Website: | http://www.jetstar.com
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| Fleet | A320 9
| Overview - Jetstar Asia
Jetstar Asia – Uncertain role for Singapores second LCC Qantas was one of the first players to enter Southeast Asias low cost sector when it founded Jetstar Asia in 2004 in financial cooperation with the Singapore Government and two local investors. Its approach thus far has been a mix of LCC and hub and spoke orthodoxy, an approach that has yielded mixed results.
Jetstar Asia began its existence with a route network that highlighted the regions key cities. While main rival Tiger was setting its sights on nearby secondary cities like Hat Yai and Padang, Jetstar started life serving Hong Kong and Taipei, higher profile destinations, but also congested, expensive and highly competitive facilities that are too distant to allow for many daily aircraft cycles. The Jul-05 merger with Valuair was an early victory, both as a means of removing excessive LCC capacity and route overlap from the market, and as a way to access key regional cities Jakarta, Bali and Surabaya, to which Valuair uniquely had rights.
Even so, the carrier remains uncertain about its role in the regional picture. Key to its offerings are seamless connections in Changi for both its own and Qantas passengers. But this ability comes at the cost of staying in the more expensive and constrained main terminal instead of the airports purpose-built Budget Terminal, and keeping aircraft on the ground for longer than a free-flow operation would require – both LCC faux pas.
Outlook uncertain for sector-straddling carrier Qantas' deep pockets and the value it places on maintaining an active presence in the Asian sector mean that Jetstars medium-term future is probably secure. Still, without clearly defined goals and plans, additional returns to investors for funds – such as its Apr-06 call for SGD36 million – remain a possibility.
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