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

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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