Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Jetstar quits Auckland-Singapore route as rivals team up

Jetstar ditches Auckland-Singapore route as Air NZ, Singapore Airlines await codeshare sign off

By Suze Metherell

March 20 (BusinessDesk) – Jetstar, the discount unit of Australian airline Qantas Airways, is abandoning the Auckland- Singapore as Air New Zealand awaits regulator’s approval on its code sharing deal with Singapore Airlines that will lift their combined capacity by 30 percent.

Jetstar launched a daily service between Auckland and Singapore in 2011, but trimmed back to three flights a week in 2012 because of falling demand. The low cost carrier said it had decided to put the capacity “to better use on other routes”.

The decision comes as Air New Zealand waits for regulator’s approval on a code sharing deal with Singapore Airlines. Under the arrangement, Air New Zealand will fly daily on the route using Boeing 777-200ER aircraft, returning to Singapore for the first time since 2006, and Singapore Airlines will operate Airbus A380s.

Jetstar wouldn’t say whether the Air NZ-Singapore tie-up had been a factor in its decision to drop the route. “Route reviews take into consideration a number of factors including past performance and future potential,” the airline said in an email.

“Jetstar is always keen to bring competition to monopoly routes and for the past three years has provided a low fares choice on the Singapore-Auckland route,” a spokesperson for the airline said.

Auckland International Airport, New Zealand’s busiest gateway, said the loss of Jetstar’s Singapore service would cost the New Zealand tourism industry over $70 million every year and remove 100,000 low fare seats from the market.

“Today’s announcement confirms the concerns we expressed to New Zealand’s minister of transport that the proposed alliance between Singapore Airlines and Air New Zealand could have detrimental impacts on the growth and promotion of competition in international air services,” said Glenn Wedlock, the airport’s aeronautical commercial general manager.

Jetstar’s parent company, Qantas, posted an A$252 million annual loss last month and has announced plans to sack 5,000 workers as the Australian government contemplates relaxing foreign investment rules around the airline.

Air New Zealand’s shares rose 0.8 percent to $1.88 and have gained 25 percent in the past 12 months. Auckland International Airport fell 1.3 percent to $3.85 and have advanced 39 percent over the past year. Qantas shares fell 0.5 percent to $1.085 on the ASX.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news