I’ve spoken before about the on-going Jetstarisation of Qantas and despite Alan Joyce’s previous comments to the effect that there would be no further “jetstarisation,”recent developments certainly seem to indicate that this is not the case. We’ve previously joked about Jetstar taking over at Qantas and have occasionally used the phrase:
Qantas,a member of the Jetstar group
While this is a joke comment and I very much doubt we’ll ever see the reality officially recognised like this,recent actions and statements from the Qantas group have led me to coin the phrase:
If it’s new,it’s JQ!
The first and most obvious indicator that Jetstar is where the action is relates to the introduction of an iPad trial on Jetstar flights. Most reports have been gushing about the cool factor or the chance to do away with bulky in flight entertainment (IFE) systems. Others have questioned how they’ll prevent theft,how they’ll recharge and/or restock content and how long that 10 hour battery life will actually last when showing movies after multiple re-charge cycles.
No one,however,appears to have asked the obvious question:
Why is this trial being run on the cut-price,budget,no frills Jetstar brand instead of on a Qantas branded flight?
Is it because people are used to paying for IFE (indeed,anything!) on Jetstar so shelling out $10 wouldn’t be questioned as it might by those who are expecting more for their higher ticket price? Is it because Qantas are trying to associate “cool”with Jetstar? Is it because it’s easier to get Jetstar staff to trial new systems because it doesn’t have to be leveraged into a complex work agreement?
For whatever reason,it seems odd that something new,innovative and generally perceived as “cool”is being run on Jetstar. Maybe it’s because the bulk of the future growth within the Qantas group is going to be in Jetstar,so it’s better to trial this technology in the conditions it’s most likely going to encounter.
Perhaps a more blatant indication of the expansion of Jetstar compared to Qantas mainline is its encroachment on international routes. Qantas have said that they will use Jetstar on routes that do not have the margin to support a mainline service. Given the trend towards low price &discount operations,this can only mean that the Orange Star will be seen more &more around the world instead of the Flying Kangaroo.
A prime example of this is the expansion of Jetstar’s international routes out of Singapore and the increase in pilots they’re basing at Singapore &Auckland. Rather than basing pilots in Australia for flights into Europe,Jetstar are basing them in Singapore where they’ll fly on to Europe while Australian based pilots fly to &from Singapore (and probably no further). Jetstar pilots based in Singapore are apparently paid more than those based in Australia but even so,they’re paid significantly less than Qantas mainline pilots.
With the increase in pilots based in New Zealand (where they’re paid much less money than those based in Australia),it is also likely that more international routes will have crews from New Zealand flying into Australia and then on to the USA,Japan or Singapore as well as the increase in direct international flights from New Zealand.
Naturally the use of pilots based outside of Australia has raised the ire of the Australian &International Pilots Association (AIPA),the union that represents both Qantas mainline and Jetstar pilots. They’re up in arms about lack of consultation and using offshore based pilots to avoid Australia’s employment laws.
Again,no one has commented on the fact that increased use of Jetstar pilots on international routes means no expansion of Qantas mainline pilots and,in fact,fewer mainline pilots in the future if more routes transition to Jetstar.
As if all this wasn’t enough,Emirates have purchased more A380s which can only mean a significant increase in capacity out of Australia. Given the competition that Qantas faces from Emirates with their extremely discounted airfares (not to mention their levels of service,especially in the premium market) it is likely that more &more passengers from Australia will use Emirates for their flights to Europe. This in turn will put more pressure on Qantas to use Jetstar where possible,further increasing the likelihood that we’ll one day see a long haul A380 with Jetstar colours and seating arrangements.
While Alan Joyce indirectly acknowledged Emirates’growth when he recently announced that Qantas mainline services were seeing an increase in traffic,he fobbed off Emirates by saying that the Middle East was an unprofitable growth area that Qantas are not interested in. This statement makes it seem like Middle Eastern carriers are only taking people to their home bases which,unfortunately for Qantas,is clearly not the case. These carriers are offering faster,cheaper &better quality services to most points of Europe with a single stop over. To counter act this,Qantas are trying to open up more direct flights out of Singapore via Jetstar to compete on price &flexibility with the Middle East carriers. Yet again more growth in Jetstar and not in Qantas mainline.
If trends like these continue,I expect you’ll be hearing “Jetstarisation”crop up again &again. You’ll certainly be hearing us saying “If it’s new,it’s JQ!” more often. Just remember,you heard it here first:)
This has been one of the main concerns of Qantas union groups for a number of years,and it was the same issue shared by their VB brethren when PB,then later V Australia,commenced operations (from a crewing perspective). It’s worth reading union literature on the web to fully understand AIPA’s (and AFAP’s) agenda. The unions are currently in a push to essentially synchronise the various EBA’s from various carriers and restore common conditions to pilot agreements. Despite what the lepricorn may say,and contrary to their public dribble,I think it’s obvious to most people that Qantas are simply trying to offload their capacity into Jetstar to remain competitive. If Jetstar wasn’t such a crappy low quality airline there wouldn’t be a problem with that,but issues arise when a passenger books a full QF fare and ends up seated on a JQ flight next to somebody from the leisure market who paid $50 for something they paid $300 for…and this does happen.
Qantas already has integrated IFE,so what’s the point in replicating their service by offering a paid inferior product? Jetstar has nothing in the way of IFE so it’s only natural that they will supplement their service with a paid product that people want (their competitors have a variant of it,so why shouldn’t they?). It will be profitable (other paid IFE solutions in countless airlines supports this assumption). The trial has also given Jetstar global recognition for the initiative…remembering,of course,that it’s only a trial.
Why the iPad? Why now –especially since portable devices have been around for years? The fact that they’re offering in-flight portable IFE PED’s is no big deal at all –despite the unjustified publicity. What’s interesting is that they’ve chosen the unproven and costly iPad platform over proven products;and one can only assume that it was done because the entire trial is heavily subsidised by BlueBox who have struggled to illicit interest or support from the remainder of the global aviation market (for good reason). There are countless reasons why this isn’t a viable longer-term solution.
Managing the iPads in-flight shouldn’t be too much of a concern. From the experience of other carriers,only a small percentage of short-haul passengers will hire the units and,after having used one myself,short-haul is certainly all the’re good for. There are a number of other operational issues:compliance issues,software concerns,licensing,network capability…the list goes on.
I’ve written a blog on the iPad as an IFE alternative;and another on Jetstar and the iPad,with more to come. I’ve also recorded a few good interviews with IFE experts that aren’t good enough for the podcast but are more than good enough to slap on the web.
There’s a huge amount to be said on this topic. Another time. I’m on my crappy Nokia phone writing this (so please excuse the spelling).
Marty,we have to get that podcast of yours up &running so we can get more great commentary like this!
In my view,the iPad experiment has been done purely to try to cash in on the easy,and huge publicity of this device at present. As you point out,there are many existing alternatives but the public seems transfixed by the current iPad craze. I think it also fits with the “new world”feel that Jetstar tries to exude.
I wonder how long it will be before the other low cost carriers follow suit.
Thanks for the comments and links you’ve provided,Marty. Very much appreciated and some very good points.
I hadn’t considered that QF aircraft already have the IFE on board,although they still could have run the iPad trial there as they could have offered different (and perhaps fresher?) content via the iPad. This would give people some incentive to try it out over &above the “cool”factor:)
Won’t be long Steve. We’re trying out various means of communication before we record the ‘official’first episode. Recoding another test tomorrow with new software.
Grant. Virtually any delivery system,legacy or otherwise,can potentially be enhanced or modified for ‘fresh’paper-style content on a daily basis. Why don’t they? I don’t know…perhaps airlines may soon have to;or perhaps they feel the same way as I do and see it as a (long-term) waste. The more effort that is put into the fixed-price model of IFE delivery means that the increased cost of the enhanced service will have to find its way into ticket prices (eventually) –so the current integrated content and means of delivery is simply cost-effective. Virgin America (via their RED system) have designed a means of updating the fixed IFE content via encrypted signals when it’s parked at certain gates,and perhaps this is a means of cost effective and automated delivery for daily content for other airlines looking at achieving what you describe. It wouldn’t be hard…and a peanut like me could probably put together a working proof in a couple of days! However,I don’t think it’s worth investing time,effort,money or energy into a system that isn’t orientated around an in-flight Wi-Fi solution.
If iPads or any other portable device made its way onto a legacy style carrier it would set a dangerous precedent,and potentially do untold damage to a brand known for an all-inclusive ticket. I don’t think PED’s would work with QF.
In terms of “fresh”content…QF already has a free news segment (both to the audience and QF) provided by a syndicated news provider (I think it’s Channel 9) on all their flights and they supply free newspapers to passengers (that are provided to the airline at no charge –a zero cost IFE to the airline). Virgin Blue has multiple live news channels available via their integrated RED system (for a $5 charge). Expect the VB IFE to be free when they re-brand.
Hiring PED’s has been around on aircraft for years…so I wish that iPad supporters would stop pretending that it’s something new. iPads are simply another way of achieving what’s been done for years…and it’s not necessarily any better (potentially far worse). The trial gives Bluebox a chance to show off their system,and it gets Jetstar worldwide coverage (for no good reason) at virtually no cost.
There was a blog I read recently (I can’t remember the blog or link so I’ll have to post later when I’m at a computer) that encouraged iPad supporters to actively lobby their airline to use the iPad in various areas of the organisation (including the cockpit) –citing cost savings! I couldn’t believe it. What savings? It’s like promoting a big iPhone (without the phone function) to accomplish all the tasks normally reserved for a good,inexpensive,functional and multi-purpose laptop running countless airline style applications. This comment in isolation tends to indicate the level of excitement/buzz –and not to mention ignorance –surrounding the product;and it demonstrates the lack or true awareness or consideration of its true commercial application. I think the iPad has a huge market…and it certainly has its place as a consumer product…but it just doesn’t work within the complex IT architecture of an airline.
For me,the ultimate IFE is a book! For the best in fresh content –provide Wi-Fi. Simple.
Again,comment written on my crappy Nokia E72 so I apologise for spelling etc.
On another note,more carriers should consider the paid approach to integrated IFE delivery. If the system isn’t utilised by the passenger,it plays paid advertisements,infomercials and renders billboard style banners for ‘free’. You can easily turn the system off –but most passengers don’t! The IFE pays for itself,and the paid utilisation is just a bonus. You don’t get this additional stream of income with PED’s.
Free Wi-Fi could easily be subsidised in the same way.
Airlines have a long way to go.
Thanks again for the comments Marty:)
My preferred form of inflight entertainment is a power socket for my laptop (I travel with an EEE-PC so it’s easy to use &watch even when the jerk in front puts their seat all the way back:)
My backup IFE is,a book or a few magazines.
The blog that was suggesting pilots use iPads and that it would save money was Shashank over at SimpliFlying.
As to those “free”adverts on IFE screens that aren’t being used,yes,you can turn them off but honestly,I’ve become so good at tuning out advertising that I hardly even see it these days. When reading a magazine or newspaper or seeing it on billboards (or these screens) I just automatically tune it out.
Kitt and I wound up doing a couple of surveys on advertising the other day and found it hilarious. We new most of the brands &such but had no idea about the adverts,who they were sponsoring,etc.
The amazing power of the mind:)
Cheers,
Grant