Monday Nov 18, 2024
Monday Nov 18, 2024
Tuesday, 27 March 2012 00:29 - - {{hitsCtrl.values.hits}}
The airline industry is bracing itself for more competition today as Qantas announces its new agreement with Asian airline China Eastern yesterday.
The joint venture, to be called Jetstar Hong Kong, will allow Qantas to finally break into northern Asia, offering fares that will undercut it rivals by up to 50%.
Australia’s national airline already has a small share of the Asian market with its various Jetstar routes, however this new partnership would give Qantas an even bigger piece of the pie.
With China already recognised as one of Australia’s biggest tourist markets, along with the huge amount of business travelers between the two countries, it is smart move for Qantas.
Qantas Chief Executive Alan Joyce released a statement: “We see tremendous potential for the Qantas Group in Asia and we’re looking forward to working more closely with China Eastern Airlines to deliver on it.”
Shanghai-based China Eastern will have a partnership similar to the other joint ventures Jetstar currently has in Asia, including its deal with Japan Airlines last year that produced the offshoot Jetstar Japan.
Jetstar Hong Kong will start with three Airbus 320s to service the region, which will be increased to 18 aircraft over the next 3 years.
While Qantas will benefit from the new partnership in terms of having more time to focus on becoming a premium international business airline, the change indicates a heavy load for Jetstar to bear in 2012.
