Japan, China, Technology – The Future for Jetstar

Japan, China and technology represent enormous opportunities for Jetstar, CEO Jayne Hrdlicka told the CAPA aviation summit in Sydney this week.

Hrdlicka said while competition remains white-hot – “It is street-fighting every day to hold market share” – the outlook is positive.

“The global economy is in the best shape since the GFC. I think it’s a really positive thing for all of us.”

In its home market of Australia, where low wage growth and rising energy prices are a concern, Hrdlicka said customers are still prioritising travel.

“From our business perspective, people have not traded away experiences.”

She said the Low Cost Carrier market in Southeast Asia is mature – little to zero growth – and Vietnam in particular is intensively competitive.

But Japan offers enormous potential.

“Japan is a really exciting. Low Cost Carriers have about 10% of the aviation market in Japan” and are “providing very good competition to bullet trains and buses.”

She says “we are still the market leader” in Japan and, based on other markets, expects LCC share of total passenger aviation to reach 30%.

“It’s the biggest opportunity from an LCC perspective.”

She adds China is “nothing short of staggering”, with total trips expected to increase from 120 million now to 800 million by 2030.

“We are a couple of weeks off announcing new services between Australia and China.”

Chinese travel is very different to many other tourism markets we support out of Australia.

“It is a very, very big price driven opportunity.”

In other comments, she said Jetstar “re-platformed” its technology four years ago, making  a huge difference to how the airline has done business through utilising data.

“We’ve got at least a 1% uplift in revenue thanks to (increased) data smarts.”

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