Jestar says dollar is a positive
Qantas offshoot Jestar says the impact of the higher Australian dollar on the airline has been more positive than negative, with CEO Alan Joyce saying the higher local dollar has made outbound travel from Australia cheaper.
“It’s making overseas travel less expensive,” he told journalists, adding, “We’re finding that particularly for the Asian and Japanese markets, we’re getting significant growth.”
“It’s obviously also helping up with a large element of our costs in terms of fuel and aircraft ownership, which are in US dollars, so it does help up in terms of those costs coming back in.”
Mr Joyce said the negative effect had been felt in the inbound Japanese market, because travel to Australia was now more expensive for Japanese tourists [or could this be because of Jetstar’s lacklustre service as reported in TravelMole yesterday?]
Some inbound markets fell by up to 15 per cent but outbound travel was up close to 30 per cent. “It’s more of a positive effect,” Mr Joyce said.
Mr Joyce also said that Jetstar was performing to Qantas’ expectations.
In August, Qantas chief executive Geoff Dixon said Jetstar would probably contribute up to 10 or 11 per cent of the group’s profitability, or perhaps a little bit more.
“In line with the statements made by the Qantas group Jetstar is meeting our contribution within that,” Mr Joyce said.
“So we’re actually equally as good as the rest of the group.”
Mr Joyce also said that Jetstar was interested in starting long haul operations to Taiwan and South Korea, but the plan depended on the airline receiving new aircraft that it had ordered.
A decision on operations to Taiwan and South Korea could be made in the middle of next year, at the earliest, but most likely in the latter half the year.
A Report by The Mole from AAP
John Alwyn-Jones
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