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Jetstar Commences Gold Coast-Seoul Incheon Nonstop Flight

Jetstar group chief executive Gareth Evans says he is encouraged by the strong start to the low-cost carrier’s (LCC) new nonstop Gold Coast-Seoul Incheon service.

The inaugural flight departed Gold Coast Airport at a little past 1200 local time on Sunday, with Boeing 787-8 VH-VKF receiving an Airservices Aviation Rescue and Fire Fighting (ARFF) monitor cross prior to taking off as the JQ49 bound for Seoul Incheon.

Some nine hours and a half hours later, the 787-8 touched down at Seoul Incheon just before 2030 local time.

And after about two and a half hours on the ground, the Dreamliner took off as the reciprocal JQ50 bound for the Gold Coast.

Evans expressed confidence that the route would do well, given the stimulatory impact of low fares and South Koreans’ being among the most frequent travellers per capita of any country in the world.

Similarly, Australians were increasingly becoming aware of South Korea as a place to visit for food, history and popular culture influences such as K-Pop.

“There will be a lot of demand from Korea. But we are betting on huge increases in demand from Australians as well,” Evans told reporters at Gold Coast Airport on Sunday prior to the inaugural flight.

“The start to the route has been fantastic so we are off to a very good footing.”

Jetstar’s Gold Coast-Seoul Incheon flights have been scheduled on Wednesdays, Fridays and Sundays.

The 787-8s serving the route have 335 seats comprising 21 business class recliners in a 2-3-2 configuration with 38-inch pitch and 314 economy class seats at nine abreast with 30-inch pitch.

Currently, Asiana Airlines and Korean Air are the only two airlines with year-round nonstop flights between Australia and South Korea.

Asiana flies to Sydney, while Korean Air has nonstop flights to Brisbane and Sydney.

Meanwhile, South Korean LCC Jin Air has served Cairns with seasonal flights in recent years.

Qantas – Jetstar’s parent company – last served South Korea with its own aircraft in the mid-2000s when it flew Boeing 767-300ERs on seasonal services between Brisbane and Seoul. It also had year-round flights to Seoul in the late 1990s.

Ansett Australia also flew to Seoul in the late 1990s.

Evans said the stimulatory impact of low fares offered by Jetstar compared with those of full-service carriers Asiana and Korean Air would help grow the market.

Currently, the Australia-South Korea market was split 70 per cent South Korean travellers and 30 per cent Australian.

Looking ahead, Evans said he expected the directional flow to become more evenly balanced over time in a similar way the Australia-Japan market has evolved.

“We will grow both ends of the market but particularly we will grow the Australian end of the market,” Evans said.

“Japan sort of started about 70-30 now it is 50-50. We would imagine over time – a number of year – this market would move to a more 50-50 split.”

Further, a partnership with South Korea’s largest LCC Jeju Air, which has added its 7C airline code on the Jetstar flight as part of a hard block codeshare agreement, would also help raise awareness of the route in the South Korean market.

“The reason we are partnering with Jeju is because right now Jetstar brand has very little penetration in the Korean market so you need a strong partner to provide you with that brand strength and distribution in the market,” Evans said.

“That’s what Jeju brings.”

When Jetstar launched the route in May, it offered introductory fares of $179 one way. Since then, Evans said ticket prices for travel between the Gold Coast and Seoul Incheon have been in the $300 to $400 range.

“It’s those low fares that stimulate demand and open up markets,”Evans said.

“It has happened with us on a number of markets around Asia – Japan, Vietnam, Thailand. It will happen with Korea as well.”

Asked why Gold Coast was chosen as the city to launch flights to Seoul Incheon, Evans said that was where the demand was, noting inbound travellers from Asia loved to visit the Queensland city.

Further, Gold Coast was also able to act as a hub and gateway for the airline, offering convenient connections to other parts of Australia in both directions.

“The geography of the Gold Coast and the operation that we have got here into the Gold Coast means that we are building the Gold Coast as a hub for our Australian traffic,” Evans said.

“We are also seeing great demand from customers in Melbourne and Sydney connecting through the Gold Coast.”

Queensland Airports Ltd chief executive Chris Mills said the Jetstar flight opened up another new and exciting destination for locals on the Gold Coast, as well as new nonstop option for South Koreans travelling to Australia.

“South Koreans will have a direct link to our stunning beaches and hinterland, delivering significant benefits to our economy,” Mills said in a statement.

Queensland Tourism Minister Kate Jones noted the number of South Korean visitors to Queensland had grown by about 20 per cent to 76,000 visitors a year in the 12 months to June 2019, compared with 63,000 visitors in the prior corresponding period.

The new route was supported by the Queensland government’s attracting aviation investment fund, Queensland Airports and Destination Gold Coast.

Jones said the negotiations were completed over an 18-month period.

“Because it is taxpayers’ dollars to secure these new flights we always make sure that we believe that they meet our expectations for taxpayers,” Jones said.

“From our perspective we back flights that we know will attract and bring new tourists to Queensland.”

Written by Jordan Chong

Alitalia Future Uncertain as easyJet Quits Talks

LONDON (Reuters) – The future of Alitalia was plunged further into uncertainty on Monday after British budget airline easyJet pulled out of talks to rescue the Italian carrier two weeks before a deadline to save it.

EasyJet said it had decided to withdraw from the process after discussions with Italy’s state-controlled railway Ferrovie dello Stato Italiane and U.S. airline Delta Air Lines.

Alitalia was put under special administration in 2017 after workers rejected the latest in a long line of rescue plans, leaving the government once again seeking a buyer to save the airline.

Ferrovie is racing against the clock to meet deadline of the end of the month set by the Italian government to present a rescue plan for Alitalia, and had been in talks with easyJet and Delta over a possible deal.

But the parties had not seen see eye to eye on the structure of a deal. Without an industrial partner fully on board, a source said last week that Alitalia could soon find itself in trouble since neither Ferrovie nor the state have the skills to run the carrier.

Delta said it was still in talks with Ferrovie.

“Discussions remain ongoing as Alitalia is a long-standing partner of Delta,” the U.S. airline said in a statement.

Alitalia and Ferrovie could not immediately be reached for a comment.

EasyJet, whose shares were unaffected by Monday’s announcement, had said several times it was interested in Alitalia’s short-haul operations and positions at primary airports.

A source familiar with the talks said easyJet still believed it could be a good partner for Alitalia, but that a deal was not feasible with the current approach.

“EasyJet pulled out because it wanted to control (Alitalia’s) Milan hub and use it for point-to-point flights. This could not be done,” another source with knowledge of the matter said.

EasyJet said it remained committed to Italy, as a key market for the company.

“We continue to invest in the three bases in Milan, Naples, (and) Venice,” it said in a statement.

(Reporting by Alistair Smout in London and Sangameswaran S in Bengaluru; Additional reporting by Agnieszka Flak in Milan and Giselda Vagnoni in Rome; Editing by Keith Weir and Mark Potter)


British pilot Kate McWilliams became the world’s youngest ever commercial airline captain at age 26 with easyJet.

California Pacific Flights To Las Vegas & Mesa Set To Begin

California Pacific, the new airline with a string of false starts, is finally up and running. After launching flights on November 1st between its home base of Carlsbad, California and San Jose, Reno and Las Vegas, the airline is now set to start flights November 15th to both Mesa Gateway Airport in Arizona, and Las Vegas. 

Mesa Gateway is coming off a record September with its fifth consecutive month of record-setting passenger activity. The secondary airport in the “Valley of the Sun” is now gearing up for a number of additional airlines set to arrive in time for the 2018 holiday season. In addition to California Pacific, Canadian low-cost carriers Flair Air and Swoop will also be starting flights this winter. The airport will soon be serving 47 different destinations via 5 different airlines.

In October, the Phoenix-Mesa Gateway Airport Authority announced that two brand new privately funded hangars would soon be built at the airport. This should lead to increased private and business operations out of the airport. Construction of new office space is also on the agenda, as the airport authority seeks to continue the momentum of its expanding operations.

Image from www.mycpair.com

Ryanair, CEO Suit Filed In U.S. Court

NEW YORK (Reuters) – Ryanair Holdings Plc (RYA.I) and longtime Chief Executive Michael O’Leary have been sued in New York by a shareholder that said Europe’s largest airline defrauded investors and inflated its share price by overstating its ability to manage labour relations and keep costs down.

The complaint was filed on Tuesday night in the U.S. District Court in Manhattan by an Alabama pension fund, seeking class-action status and damages for investors in Ryanair’s American depositary shares from May 30, 2017 to Sept. 28, 2018.

Ryanair did not immediately respond on Wednesday to requests for comment.

The complaint said Ryanair misled investors in regulatory filings and conference calls about its labour stability, including “industry leading” contracts with pilots and cabin crews, and its positive impact on operations.

It said the truth came out as labour unrest forced the Dublin-based low-cost carrier last December to recognise unions for the first time, and led this summer to costly strikes that stranded thousands of passengers in several countries.

“Unbeknownst to investors, the company’s historical profit growth was built on an undisclosed and unsustainable foundation of worker exploitation and employee turnover,” the complaint said. “The decline in the price of Ryanair ADSs was the direct result of the nature and extent of defendants’ fraud finally being revealed to investors and the market.”

Ryanair cited labour issues on Oct. 1, when it cut its full-year profit forecast. Its share price closed that day more than one-third below its level in mid-March.

O’Leary, Ryanair’s chief executive since 1994, said last month he hoped to reach labour agreements with all of the carrier’s major unions before Christmas.

ADSs on June 30 accounted for 43.7 percent of Ryanair’s issued ordinary shares, assuming all were converted into ordinary shares, the company has said. Ryanair’s market value is roughly $16 billion, according to Refinitiv data.

The lawsuit was filed by the City of Birmingham Firemen’s and Policemen’s Supplemental Pension System. Its law firm Robbins Geller Rudman & Dowd specializes in securities fraud.

It is common for shareholders to sue companies in the United States after what they consider unexpected share price declines.

The case is City of Birmingham Firemen’s and Policemen’s Supplemental Pension System v Ryanair Holdings Plc, U.S. District Court, Southern District of New York, No. 18-10330.

(Reporting by Jonathan Stempel in New York; editing by Bill Berkrot)

Ryanair Hopes To Close Union Deals By Christmas

DUBLIN (Reuters) – Ryanair (RYA.I) hopes to reach deals with all of its major unions by Christmas, its chief executive said on Monday, in a sign an end may be in sight to disruptions which have hit its profit and shares.

The Irish low-cost carrier, Europe’s largest, on Monday reported a 7 percent fall in profits in the six months to Sept. 30 on high fuel costs and intense competition.

But it said these factors were helping it to resolve its industrial relations troubles.

“Given the adverse environment that’s out there for airlines and the number of job losses being reported in recent weeks both by pilots and cabin crew, there is a much more sensible, common sense approach being taken by the unions,” Chief Executive Michael O’Leary said in a video presentation.

O’Leary said that recent progress in talks left Germany and Belgium as the only two large markets for the airline where recognition agreements had not been secured.

“We would be hopeful of concluding agreements with them this side of Christmas,” he added.

The fall in profit was less than the 9 percent drop forecast by analysts and Ryanair shares were 4.2 percent higher at 12.00 euros at 1100 GMT.

Ryanair’s shares are almost 40 percent down from a peak of 19.39 euros in August last year before the industrial relations issues began.

A staff revolt forced management to recognise unions for the first time last December and the airline has since struggled to put in place union recognition agreements.

A spokesman for Belgium’s LBC-NVK union said it was waiting for an offer from Ryanair on Thursday and had warned the airline they could strike again if there is no progress.

A spokesman for German unions VC said he saw “no real progress” in talks with Ryanair, which also needs to secure recognition deals in the Netherlands and Sweden.

On Friday it said it had reached agreement with British, Portuguese and Italian pilots and was close to a deal with Spanish pilots, although the British union said the deal had not been approved by its members yet.

Ryanair issued a profit warning on Oct. 1 citing damage to bookings from strikes and cutting its forecast for full-year profit by 12 percent.

But on Monday, O’Leary said much of the weakness of recent weeks was sector-wide rather than specific to Ryanair.

Over-capacity in European short-haul will push Ryanair fares down by 2 percent in the six months to March 31 compared to the same period last year, O’Leary forecast. He warned he would not rule out a 3 percent fall.

“We are entering into a grim winter in terms of declining air fares,” he told an analyst conference call. “But moving into the summer of 2019 I would expect to see some upward traction on pricing… following oil prices with a 12-month lag.”

Ryanair, which makes most of its profit in the summer, reported a profit of 1.2 billion euros ($1.38 billion) in the six months to Sept. 30, better than the 1.127 billion euros forecast in a company poll of more than 10 analysts.

($1 = 0.8685 euros)

(Additional reporting by Ilona Wissenbach and Daphne Psaledakis; Editing by Amrutha Gayathri and Alexander Smith)

Image from https://www.ryanair.com/us/en/