Jetstar calls in more planes to meet demand for half-price fares

Jetstar is expanding its domestic fleet ahead of an expected deluge of demand triggered by taxpayer-subsidised half-price airfares.

Jetstar pilots first officer Karen Essery and Captain Fiona Overton. Picture: Stewart McLean

Jetstar is bolstering its domestic fleet in readiness for huge demand on the back of half-price airfares and the absence of a low fares competitor.

Already the Qantas subsidiary has brought seven A320 aircraft over from its bases in Singapore and Japan, with plans for three more A320s to arrive in coming months.

While four of the A320s are being used in Western Australia to support an increase in mining-related charter flying for the industry, the remainder will go onto domestic routes as part of a “leisure-lead recovery”.

It was possible Jetstar could also deploy its Boeing 787-8s on domestic routes where demand existed.

Crew who normally operate the aircraft on short-haul international flights to Bali and New Zealand will fly the domestic services instead.

Speaking at the CAPA Centre for Aviation, Jetstar CEO Gareth Evans said the group was not planning to overheat the market but did see room for growth.

“We’ve got no Tiger in the market. There’s space there for us to grow into … we’ve got a right to grow,” Mr Evans said.

“We’re the low fares airline with the bottom end of the market, and we’re going to do that flexibly using aircraft from elsewhere within our group.”

He said the A320s were not currently needed in Singapore and Japan, which were experiencing a slower recovery than Australia’s domestic market.

Jetstar Group CEO Gareth Evans. Picture: AAP

Jetstar was also expected to benefit from government-subsidised half-price airfares due to hit the market next month for flights in May, June, July and August.

The day after the announcement, the Qantas Group saw a 75 per cent surge in website traffic and a 40 per cent leap in bookings, in a promising sign of things to come.

The ramp-up is expected to increase pressure on Regional Express airlines as it struggles to carve out a foothold in the competitive domestic market.

Speaking at the airline’s half-year results last month, Rex chairman Lim Kim Hai said the new services including Sydney-Melbourne flights were not expected to be profitable in the current financial year but should break even the following year if the domestic recovery was strong. Next week Rex will begin operating from Sydney and Melbourne to the Gold Coast, and between Sydney and Coffs Harbour and Port Macquarie.

In recognition of the challenges facing flood-ravaged Port Macquarie days ahead of the new services, Rex pledged to provide $500,000 worth of flights for the local council to use at its ­discretion.

Deputy Chairman John Sharp said the airline’s “heart was in the country” and they had been moved by the devastation seen in the past few days.

“The federal government swiftly stepped in to save all regional airlines from near certain bankruptcy when COVID-19 hit one year ago and we believe that it is only right that Rex does its level best to now assist those in dire need,” Mr Sharp said.

The carrier has also recommitted to five regional routes it had previously announced were to be axed, in the face of “predatory behaviour” by Qantas.

The flights from Sydney to Bathurst, Cooma, Lismore and Grafton and Adelaide to Kangaroo Island will continue until at least September following the extension of the federal government’s regional aviation network scheme.