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

 

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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