DEATH STAR
Airline sparks dismay by killing off Bali flights
JETSTAR has confirmed it will cancel its Townsville-Bali route from March next year. The airline said the service, which started two years ago, was not economically viable. A crisis meeting was held yesterday between Townsville Mayor Jenny Hill, Townsville Enterprise chief executive officer Patricia O’Callaghan, Senator Ian Macdonald, Minister Assisting the Premier on North Queensland Coralee O’Rourke, Townsville MP Scott Stewart, Qantas’ Trent Mumford, a Jetstar representative and Queensland Airport Limited’s Paul Donovan. However, Jetstar could not be persuaded to continue offering the service past March 21 next year. The Bulletin understands the Bali to Townsville flights were among the worst- performing international routes on the Jetstar network. Jetstar Australia and New Zealand chief executive officer Dean Salter said it was disappointing, however the airline couldn’t continue to subsidise “unprofitable parts of the network”. “We have operated the route for two years and have worked with the airport but we cannot see a path to making it sustainable,” he said. Ms O’Callaghan said the decision would “definitely impact” the city’s brand.
JETSTAR flights between Townsville and Bali will be cancelled from March 21 next year after the airline claimed it wasn’t economically viable to continue the service.
It’s been two years since Jetstar offered the service after the same route operated by Strategic Airlines ceased in 2011.
A crisis meeting was held via teleconference yesterday between Townsville Mayor Jenny Hill, Townsville Enterprise chief executive Patricia O’Callaghan, Senator Ian Macdonald, Minister Assisting the Premier on North Queensland Coralee O’Rourke, Townsville MP Scott Stewart, Qantas’ Trent Mumford, a Jetstar representative and Queensland Airport Limited’s Paul Donovan.
It is understood Cr Hill asked for another week to negotiate before any announcement, however Jetstar declined.
The Bulletin understands the Bali to Townsville flights were among the worst- performing international routes on the Jetstar network and had been unprofitable for some time.
It is understood Jetstar were having discussions with Queensland Airports Limited for several months and in July formally requested their support to maintain the service.
It is understood QAL responded with an offer – which included some marketing funds to promote Townsville as a tourist destination in Bali – however it fell short of what was required. Jetstar was ready to make the announcement last Tuesday but agreed to delay it by a week. It is understood there was no demand for inbound tourism from Bali to Townsville.
Jetstar Australian and New Zealand chief executive Dean Salter said it was disappointing but the airline couldn’t continue to subsidise “unprofitable parts of the network”.
“We have operated the route for two years and have worked with the airport but we cannot see a path to making it sustainable,” he said.
“This decision was made with the existing passenger charges in mind, and if we agreed to the proposed additional $ 3 per passenger charge by Townsville Airport the route would have been even more unviable.
“The Qantas Group, including Jetstar, provides more flights and brings in more visitors to Townsville than other airlines and we are committed to the region for the long term. On leisure routes like this, even slight increases in fares can have a negative impact on tourists’ willingness to travel.”
The CEO of Tourism and Events Queensland Leanne Coddington will meet with Jetstar’s CEO Gareth Evans this week to discuss opportunities for new flights to Townsville.
Tourism Minister Kate Jones has also just returned from China where she was meeting with airlines to pursue more direct flights to Queensland.
Ms Jones said this week’s meeting between TEQ and Jetstar could provide new routes.
“This is off the back of the success with TigerAir flights where we’ve provided support ( through the State Government’s Attracting Aviation Investment Fund) to get new domestic routes into Townsville,” she said.
“The flights are making a huge economic impact for Townsville.
“It would be great to see another connection between Townsville and Sydney or Adelaide.”
WE HAVE OPERATED THE ROUTE FOR TWO YEARS AND HAVE WORKED WITH THE AIRPORT BUT WE CANNOT SEE A PATH TO MAKING IT SUSTAINABLE DEAN SALTER