JETSTAR has strengthened its position in mainland China, with the launch of its direct Singapore-Beijing flight on Thursday, becoming the very first low-cost carrier to operate flights between Singapore and the Chinese capital.
Beijing is Jetstar’s 10th Chinese destination. The airline also launched its Singapore-Ningbo operations on September 9.
The new flight originates in Melbourne as an extension of the Melbourne-Singapore return service. It will run on an Airbus A330 configured for 303 passengers across both business and economy classes.
In a press statement, the CEO of the Jetstar group, Bruce Buchanan, said that the new route would be “used by lots of people in Beijing and Singapore to visit family more often, and a lot of businesses will use it to lower their overhead”.
The new flight is also expected to reinforce Singapore’s status as Jetstar’s gateway into Asia.
“China is a strong source market for us. In 2010, it grew by 300 per cent and so far this year, it has expanded by 150 per cent,” said David Hall, CEO, Australia & New Zealand, Jetstar Airways, during a press conference to mark the inaugural Singapore-Beijing flight.
“What’s interesting to note is that low-cost carrier penetration is still relatively low In Asia. In fact, low cost carriers account for only 20 per cent of all capacity within the region. This figure is only five to 10 per cent in Japan and China. Comparatively, in more mature markets such as Australia for example, it’s over 50 per cent.”
He clarified that the airline would be focusing on the leisure market, although Jetstar has a good corporate following from small- and medium-sized businesses.
The CEO of Jetstar Asia Airways, Chong Phit Lian, said in the same conference that the group is open to expanding its services to new destinations in China and around the region, but that the final decision depended wholly on “economic, capacity and regulatory factors”.
However, she hinted that Jetstar Asia might consider Chongqing and Changsha in the near future, as there is significant potential for the outbound markets from these two provincial cities to grow.
During the conference, Hall confirmed that the Jetstar Group now has 170 firm orders on its books, including 25 Boeing 787 Dreamliners, which will gradually replace its A330s from mid-2013.
