VOTE: Will Asian expansion damage Qantas' Australian brand?

By AdNews | 27 March 2012
 

Yesterday Qantas announced the launch of Jetstar Asia in partnership with China Eastern Airlines. It marks the fourth Jetstar operation to be based outside Australia, joining Singapore, New Zealand and Vietnam. Later in the year Qantas will also launch Jetstar Japan.

The launch of Jetstar Hong Kong follows a horrid 2011 where the entire Qantas fleet was grounded on 29 October. It also comes just after news that Qantas' plans for a premium Asian airline have been shelved and a few weeks before Qantas cuts some of its premier overseas routes, including services to London via Hong Kong and Bangkok.

But Qantas CEO Alan Joyce is still in a good mood. “We know from our experience with Jetstar in Australia and in the setup of Jetstar Japan the benefits of both a premium and a low cost airline operating in the same market,” he said to media at the launch of Jetstar Hong Kong. "This will also apply to Jetstar Hong Kong, which will leverage the local knowledge and scale of China Eastern Airlines with the successful low cost model of Jetstar."

Joyce isn't giving up on further Asian expansion either. “We are still in dialogue with both the Singaporeans and Malaysians [regarding a premium Asian airline] but nothing is happening in the short term,” he told BloombergBusinessweek. “It’s more of a long-term issue.”

But is this rapid Asian expansion damaging Qantas' Australian brand? In Australia, Qantas has announced 500 jobs cuts and the consolidation of three heavy-maintenance facilities into one or two. Rumours are also circling that the 50 new Boeing 787 Dreamliners on order will be based off-shore. It's also slowing the introduction of the new Boeing 737-800 planes into the domestic fleet.

So will we all still be whistling the famous Peter Alan song “I Still call Australia Home” while flying domestically on Qantas in a few years time? Or will J-pop be playing through the loudspeaker as a Qantas plane lands? Vote below and let us know your thoughts on Qantas' Asian expansion.

Follow @AdNews on Twitter for breaking stories and campaigns throughout the day.

Have something to say? Send us your comments using the form below or contact the writer at adnews@yaffa.com.au

Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au

Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.

comments powered by Disqus