Highlights
- Jetstar will look at using its new fleet of A321neoLRs to launch new routes from Perth to New Zealand, as well as new routes from eastern Australia to Indonesia and the Pacific islands;
- Potential new cross-Tasman routes include Perth to Auckland, Christchurch and Wellington;
- Potential new routes to the Pacific Islands include Sydney to the Cook Islands, Samoa and Tahiti;
- Jetstar could also use A321neoLRs to link Melbourne and Sydney with Jakarta or alternative holiday destinations in Indonesia such as Lombok, Manado and Yogyakarta.
In announcing its commitment to 18 A321neoLRs on 22-Feb-2018, Jetstar initially only stated the 18 A321neoLRs would be used on existing domestic routes now served with A320ceos/A321ceos and on Australia-Bali routes now served with 787-8s. However, Jetstar will be able to also use the A321neoLR to open up new international routes from Australia that are not possible with the 787 and out of range of the A320ceo family.
"Fundamentally they are going to be doing a lot of flying domestically in Australia but it does open up new markets within that range circle for us," Jetstar CEO Gareth Evans said in a CAPA TV interview after presenting at the CAPA Global LCC Summit in Singapore on 2-Mar-2018.
Airbus lists the range of the A321neoLR at up to 7400km. However, Mr Evans said due to the high density single class configuration selected by Jetstar that "these kind of Bali stuff are getting towards the edge of the range". Jetstar's three existing 787 Bali routes - from Brisbane, Melbourne, Sydney - are all approximately 4,500km.
The A321neoLR therefore provides opportunities to launch routes of similar or slightly longer length from eastern Australia to other parts of Indonesia, however other markets in Southeast Asia are not under consideration.
Mr Evans said the A321neoLR fleet could be deployed "across the Tasman from the west coast of Australia as well. It's that sort of range capability that you are looking into if you are talking about Australia based aircraft."
He added: "Potentially there are things you can do up in the Pacific islands in the future."
CAPA has identified 16 potential routes, consisting of eight from Melbourne or Sydney to four destinations in Indonesia other than Bali; five from Melbourne or Sydney to the Pacific; and three from Perth to New Zealand.
Potential new Jetstar Airways A321neoLR routes ranked by distance
Note: *seasonal service only
Source: CAPA - Centre for Aviation and Great Circle Mapper
All 16 of these routes are not within range of the Jetstar's current fleet of single class A320ceos but would be feasible with the new single class A321neoLR fleet (although Sydney-Papeete could have payload limitations on the eastbound leg). Only six of the routes are currently served by another airline.
The Qantas Group has a presence on just two of the routes, with the full-service parent serving Perth-Auckland and Sydney-Jakarta. However, Qantas' share of the Perth-Auckland market is less than 10% as this route is dominated by Air New Zealand - a position the Qantas Group could challenge using Jetstar A321neoLRs.
For the full analysis of the potential Jetstar A321neoLR routes read the analysis published by CAPA here.
Commenting generally on the opportunities from the A321neoLR fleet Mr Evans said during the CAPA TV interview: "This is a really exciting announcement from the Jetstar Group. We are bringing in new technology. The aircraft will be more efficient so will have a lower cost base, which is obviously incredibly important for a low cost carrier. The flexibility it brings to the group is fantastic as well.
"To have an aircraft type that can move between a domestic network situation in Australia and an international network, potentially fly from the east coast of Australia into a significant market for Jetstar like Bali is huge. These will be high utilisation aircraft flying during the day in domestic Australia and then fly in the back of the clock out of Sydney and Melbourne up to Bali and that will free up 787-8s currently doing some of that flying."