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Aviation History
2004
2004-09 - 0377.PDF
AIR TRANSPORT NO-FRILLS CARRIERS EMMA KELLY / PERTH Oantas invests in low-cost start-up Carrier to be based in Singapore and serve Asian cities within 5h flight time using Airbus A320s or Boeing 737-800s Qantas has fully embraced the low- cost airline model, announcing plans to invest S$50 million ($30 million) in a low-cost start-up based in Singapore. Qantas will hold 49.9% of the new airline, dubbed JetStar Asia, with Singapore businessman Tony Chew owning 21.1% and FF Wong, former managing director of Myan- mar Airways International, holding 10%. Singapore government investment company Temasek Holdings will own the remaining 19%. Temasek already has a stake in Singapore Airlines and its low- cost start-up Tiger Airways. The partners will invest S$100 million in the carrier, which will compete in the increasingly crowded South- East Asian low-cost market. "This is a modest investment for Qantas but it is an excellent opportunity to participate in the growing intra- Asia travel market," says Qantas chief executive Geoff Dixon. JetStar Asia will launch services before the end of this year with four Airbus A320s or Boeing 737-800s to Asian cities within 5h of Singapore. Destinations being considered include China, Myanmar and Vietnam. It will provide Qantas with access to one of the world's largest travel markets, of more than 3 billion people, and the Singapore hub. The airline plans to grow to a fleet of more than 20 aircraft over three years. The airline has yet to secure an air operator's certificate from the Civil Aviation Authority of Singapore or traffic rights. A Qantas team, headed by senior executive Con Korfiatis - who is being tipped as a chief executive candidate for the new airline - has been working on the project for the past nine months, says Dixon. The launch of JetStar Asia comes as Qantas prepares for the start of services of its domestic low-cost operator, JetStar, next month. TRAFFIC Inaugural Bahrain Grand Prix boosts sponsor Gulf Air's traffic Gulf Air's traffic surged 55% in the build-up to the Formula 1 Grand Prix held in Bahrain earlier this month, compared with the corresponding period last year. Meanwhile, traffic for the first quarter of 2004 is up by a third on last year. The Grand Prix was the first to be held in Bahrain, where Gulf Air has its operational base, and the airline has a three-year sponsorship deal as part of its strategy to re-establish its brand inter nationally. To support increased demand in the run-up to the race, Gulf Air added 14 intra-Gulf flights and two charter flights from Dubai. CO-OPERATION JUSTIN WASTNAGE/ BELGRADE Closer links could result in pan-Balkan airline Efforts to improve co-operation between Balkan airlines are expected to increase this year as the Association of European Airlines (AEA) urges the region's govern ments to work together to improve the area's poor air transport performance. Delegates attending the AEA's second southern European airlines conference, which is being held in Zagreb, Croatia in June, are expected to advance plans for a pan-Balkan airline (Flight Inter national, 24 February-2 March). But senior sources within the associa tion doubt the viability of such a venture until the region's infra structure and political problems can be overcome. The Balkan region, which cen tres on the former Yugoslavia, has experienced significant upheaval over the past decade due to a series of civil wars and unrest. An AEA report following the first confer ence, held in November 2003, found that the Balkan region is one of Europe's poorest performing areas, despite a population of around 60 million. The report points to the lack of regional politi cal co-operation; low average gross domestic product; and a lack of political stability as being key con tributing factors. There are also bar riers to the free movement of goods FLEET RENEWAL and people; frequent state interfer ence in airline operations; and a high concentration of low-yield short-haul routes among the region's many carriers. The associa tion is urging co-ordinated air traf fic control, common customs and greater route integration ahead of more ambitious plans to form a joint company. Slobodan Babic, senior vice-pres ident for traffic at Serbian flag car rier Jat Airways, says the response from the region's carriers to a European Union-sponsored pro posal to form a single airline has been positive. "Look at the exam ple of Scandinavia, where three nations pooled their airline - that proves it can work," he says. Babic says the Balkan region has an advantage in its traffic figures and intra-region connections starting from a low base. New Jat Airways boss revives aircraft contest Jat Airways expects to select an aircraft to replace its Boeing 737-300/400s this year, with the latest 737 model seen as the frontrunner. Jat has a long-standing order for eight Airbus A319s, but the deal has been deferred and the airline is running a new competition. The airline's new general director Aleksandar Milutinovic says that the Next Generation 737 is the pre ferred option, but adds that any deal will have to be approved by the Serbian government and could be politi cally influenced because the authorities may seek to main tain good relations with both Europe and the USA. Milutinovic was appointed by the newly elected Serbian government to replace Jat's former general director Predrag Vujovic, who had revealed a planned $450 million fleet renewal plan just before stepping down. Meanwhile, the launch of Jat's new low-cost arm IntAirLink has been postponed after the Serbian authorities demanded changes to Jat's senior management. 14 13-19 APRIL 2004 FLIGHT INTERNATIONAL www.flightinternational.com
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