Friday, September 24, 2010

Jetstar takes a venture in budget airline war

Jetstar is including on leisure travelers to fill its extra seats, writes Clive Dorman.

Jetstar has begun implementing a gung-ho boost in capacity of up to 30 per cent in the Australian skies, betting that a stronger economy in the second half of the year will glint a surge in the number of people taking leisure trips.

The chief executive of Jetstar, Bruce Buchanan, trusts his company is winning the cut-throat war between the three airlines catering for Australian leisure travellers. Jetstar, Virgin Blue and Tiger Airways were hit hard by economic circumstances in the first half of the year - as was the business airline, Qantas.

Even though Jetstar was treading water financially between April and June, Buchanan thinks the tide is turning. But a 30 per cent raise in seats and flights is a huge gamble in view of Australian air travel increased by just 3 per cent in the year to June.

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