Jetstar to expand domestic and international operations

Jetstar has announced that it will significantly expand its narrow body operations on domestic and short haul international routes, with the first time introduction of Airbus A321s*, forming part of today’s major announcement by the Qantas Group.

Configured for up to 213 passengers in single class, the first A321s to complement future deliveries of A320 aircraft into Jetstar will enter service from March 2008*.

To support the further expansion of Jetstar an order of up to 108 aircraft including 68 A320 / A321 aircraft plus 40 options and purchase rights for the value based carrier is to proceed.

Included is a provisional order of 17 A321s for Jetstar.

Jetstar has an existing fleet of 23 A320s and has previously announced an additional 9 A320s for its Australian domestic operations to enter service between December 2007 and March 2009, initially including additional services to the Gold Coast, Darwin and Newcastle.

Jetstar Chief Executive Officer Alan Joyce said the larger A321 aircraft both complement existing Jetstar operations and can be targeted at future new markets in response to growth opportunities.

Mr Joyce said the significant narrow body aircraft order by the Qantas Group had provided Jetstar with a platform for significant future growth of its short haul operations alongside large scale international growth in long haul markets with a future wide body fleet of 15 Boeing 787 Dreamliners.

“Jetstar has outlined further growth opportunities within both the Australian domestic market and on short haul international routes from Australia and these will now be actively pursued,” Mr Joyce said.

“The performance of a large number of Jetstar existing markets also warrants further sustainable growth achieved through the larger A321s, which deliver a further benefit in operational costs.”

Mr Joyce said Jetstar would open new bases and hub a number of new narrow body fleet in both Darwin and Perth within a two year period to serve fast growing Asian markets creating hundreds of new aviation roles in both cities.

Mr Joyce said the airline would soon unveil the A321 launch operating schedule as part of its future Northern Summer 2008 schedule, subject to regulatory approval.

“As the largest member of the Airbus A320 family, the A321 offers Jetstar a suite of benefits to meet the demands of a growing market and to maintain our low fares leadership position,” Mr Joyce said.

“The A321 offers superior seat-kilometre costs of any single-aisle aircraft within its class and provide the flexibility of adding additional seats per sector over services now operated by our A320 fleet.

“The introduction of A321s will require a change to our Air Operator Certificate (AOC) to which our internal planning is well advanced. A formal process can now commence with the Civil Aviation Safety Authority (CASA) to seek to achieve regulatory approval to operate.

“Importantly we believe the aircraft can be seamlessly introduced into the airline without an impact on our cost base as our existing technical crew, engineering support and systems for our A320 fleet will be able to accommodate the larger narrow body aircraft. 

“There will also be minimal changes required at our major airports where these aircraft will likely operate.”

The A321s will have engine commonality with Jetstar’s existing A320 fleet powered by IAE V2500 engines but with a higher thrust rating. 

Cross cockpit qualification for technical crew for existing A320 crew will take place with the A321 having commonality with the A320 including the same flight deck.

* Subject to regulatory approval

A Report by The Mole