Sydney Airport Message Board - Qantas And Jetstar Asia Announce Interlining

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Jetstar Asia has just announced that it will be cooperating with shareholder Qantas Group in a new interlining agreement, which effectively sees the two carriers establish a new hub in Singapore Changi Airport.

Announcing a new set of interline agreements yesterday, this further cooperation effectively sees Qantas gain a foothold at Singapore Changi Airport (SIN) with Qantas services feeding in, then regional Jetstar Asia services heading out – and vice versa.

From the 1st of August, the two carriers will begin the ticketing agreement to Kuala Lumpur, Kuching, Kota-Kinabalu and Penang, while the rest of Jetstar Asia’s network will be integrated progressively in the next few weeks.

“This agreement provides both Jetstar and Qantas Group airlines with further opportunities to support an expanding Pan Asian network with renewed reach into new customer markets,” said Chong Phit Lian, Jetstar Asia and Valuair CEO.

“We anticipate securing greater incremental levels of passenger traffic in the future on some of our key markets served to and from Singapore,” she continues. “The Jetstar Asia network, which includes many of South East Asia’s leading leisure destinations, will increasingly be able to seamlessly connect with Qantas’ global network into and out of Singapore.”

Already analysts have begun to speculate how this move could further damage Singapore Airline’s revenues, after a week which saw the Singaporean carrier report large drops in profits and traffic.

Bruce Buchanan, Jetstar CEO said, “This is further demonstration of how a closer alignment being pursued between Jetstar branded airline operations across the Asia and Asia Pacific region is providing new and exciting platforms for growth.”

This announcement follows an investor shuffle early in April which saw Temasek, a shareholder of Singapore Airlines, leaving Jetstar Asia, effectively leaving Qantas with 49% of the airline.

51% still remains in Singaporean hands as part of the city-state’s foreign ownership laws, but with Temasek bowing out, Qantas strengthened its hold over the merged entity of Jetstar Asia and Valueair.

Back then Alan Joyce, Qantas CEO had warned of things to come when he stated, “The new structure for Jetstar Asia and Valuair will provide a platform for growth and strengthen existing Qantas group services in Singapore.”