Jetstar Eyes Stronger Presence in China
Australia’s budget carrier, Jetstar, is focusing its efforts on expanding its presence in China in the next three to four years to fuel its long-term growth, the Herald Sun reported on Friday.
Bruce Buchanan, Jetstar chief executive, is renewing its push to the Chinese market, believing that the region is largely underserved.
“We think that's the best way for the next three to four years, to surround and service China from many different points. ...Then you get a really compelling network," the Herald Sun quoted Buchanan as saying.
According to the official, Jetstar is looking at Hong Kong, Taipei, Thailand, Philippines and South Korea as springboard to its solidify its presence in China.
Buchanan welcomed the entry of a low-cost carrier Spring Airlines in Shanghai as it reflects a more positively regulatory environment in China.
"That's a good sign private enterprise has been given permission to start up and start operating," he said to the Herald Sun.
In July, Buchanan said in a company statement that going to Beijing marked a significant step in the airline’s Pan-Asian growth strategy.
“Beijing represents a critical step in the growth of our brand in China and the continued roll out of our Pan-Asian strategy,” Buchanan said.
“Beijing builds on our low-fares leadership position in Singapore, continuing the expansion of our successful Singapore hub, now connecting with another 22 destinations from Singapore, such as Jakarta, Phuket, Melbourne and Auckland,” he said.
Buchanan said Beijing has many attractions to offer Australians, including the world heritage listed Summer Palace, the Temple of Heaven, the Thirteen Tombs of the Ming Dynasty and, of course, the famous Peking Man archaeological dig.
“Australia is a major tourist destination for the Chinese, evidenced by a 27 percent jump of Chinese passport holders who came through Melbourne Airport during the past year,” he said.
Andrew McEvoy, Managing Director Tourism Australia, said China is now Australia’s largest source market by value, and was going to keep growing.
“We believe the Chinese market has the potential to grow to between $7 billion and $9 billion by 2020. This level of expenditure growth would see Australia welcoming between 780,000 and 860,000 annual visitors within the next decade,” McEvoy said.
“To deliver these numbers we still need to see significant growth in aviation capacity from the Chinese market, which is why Jetstar’s new service is very much to be welcomed,” he said.